Is a demo account really neccassary?

Demo trading is beneficial in some ways. When a newcomer enters the forex market, demo trading assists them in learning and honing their skills. Demo trading allows even seasoned investors to test the viability of their trading strategies before committing real money.

A demo account is a must. But if you wish to gain more experience and if your capital allows you, you can start trading using a micro account. It has its own perks.

Imamul posted:
instead of demo i think it is more appropriate to trade in a micro account even though it is some expensive issue but effective compare to demo.

It is crucial to keep in mind that trading on a demo account does not guarantee success because it does not aid in the proper development of trading psychology, which is a crucial component of trading on a live account. It can affect trades if traders lack the proper trading psychology.

this approach is okay , but my question is , it work in a real account at all ?

Cathedra posted:
Not only for new traders, but a Demo account is also necessary for experienced traders. It is an amazing tool for trading and practising without losing money. You can backtest your strategies and avoid making mistakes on the live account.

100% - If you have to ask if it is necessary to test your system AND any changes after the beginning on a demo account before going live - well let's just say you are gambling, not trading!

A demo account is your opportunity to learn, it would be foolish not to use it.

James_Bond posted:

Abhinav posted:
But demo accounts are andavantageous for experimenting new skills or strategies. We can test new strategies without risking money.

Let me correct myself - it is indeed good for testing new strategies, however what I meant is using it for a long time by newbie traders, getting them to lose grip from the real world.

This statement I will agree with - get your ducks in a row before you go live - even a micro account can make you negative about trading if it is blown!

OK this is going is circles - so I want to make two statements:
1: To trade you need to have a working system - to test this system you need to test it without too much extra baggage (psychology, etc.) - using a demo account!
2: If your system works to your liking, you can then go to the next step to test your execution of this working system in real time on a live account .

If you combine everything from the start and get negative results - how can you pinpoint what the reason is?? Are you poor at real time trading or is your system flawed?
Another component before starting live testing on demo is Back Testing, so crawl, walk and then run!!

sad reality this is . no way to avoid

we all know the importance of demo but we never utilize this place at all. this is a sad reality.

Demo accounts can be tried, but not for long trading sessions. It will make you forget what you are here to do. Making money is the goal, and even with a micro account it will work better than a demo account.

yes , agree with you , micro works really good compare to demo account.

I agree, and I have done it as well, but my thing is that I would rather use the demo to get the feel of my strategy and know its strengths and weaknesses before I do the micro lot. Doing this means that most of the time I am doing the micro lot, I continuously make money.

Also, I don't really make much money at my job. It literally pays me just enough to afford bills, and food. So I don't have the money to risk on the market while I am getting through my learning curve. So using the demo mode really does help me see the results of my strategy and method, before I skip out on paying a cell phone bill just to have enough money to start up in the market for the 3rd time

I find demo to be crucial for new traders first months of studiying. After that, micro account seems like a good idea

Yes, trading with a demo account can be useful for investors looking to practice with theoretical money before putting actual money to work.

Demo account is essential. If you are not profitable on demo and open real account you are throwing your money. The only alternative is cent account where you can trade with small deposit.

dtpea posted:
I agree, and I have done it as well, but my thing is that I would rather use the demo to get the feel of my strategy and know its strengths and weaknesses before I do the micro lot. Doing this means that most of the time I am doing the micro lot, I continuously make money.

Also, I don't really make much money at my job. It literally pays me just enough to afford bills, and food. So I don't have the money to risk on the market while I am getting through my learning curve. So using the demo mode really does help me see the results of my strategy and method, before I skip out on paying a cell phone bill just to have enough money to start up in the market for the 3rd time

What happened firts two times. Why do you think that third time would be better?

Practice and learning: demo accounts provide a risk-free environment for traders to practice their skills, test out new strategies, and learn about the markets.

    Experience: demo accounts can help traders gain experience in executing trades, managing risk, and navigating different market conditions.

    Confidence building: by successfully executing trades and making profits on a demo account, traders can build confidence in their abilities and approach the real market with more assurance.

A demo account allows you to practice trading with virtual money, which can help you gain experience and develop a better understanding of the trading process.