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kieran (snapdragon1970)
Dec 06 2015 at 16:41
1944 postów
Demo and live account are not 99% the same,false information,you sound like a broker!

"They mistook leverage with genius".
Curran (sareen)
Dec 07 2015 at 11:48
63 postów
Demo account trading is nothing like a live account
It is good to get started on a demo account to get used to things but there is a substantial difference
There is nothing that simulates losing and earning real money than losing and earning real money
There is a massive difference psychologically being down 100 PIPs in a demo account compared to in a live account
It will hurt so much more in a real account, but in a demo it will not matter and you will not let it affect your process/system

When you lose, don't lose the Lesson
Pepen Supendi (Pepen_supendi)
Dec 07 2015 at 13:55
8 postów
sareen posted:
Demo account trading is nothing like a live account
It is good to get started on a demo account to get used to things but there is a substantial difference
There is nothing that simulates losing and earning real money than losing and earning real money
There is a massive difference psychologically being down 100 PIPs in a demo account compared to in a live account
It will hurt so much more in a real account, but in a demo it will not matter and you will not let it affect your process/system


It's just a training ground, anyway. Unless you're moving to live account, you'll never feel the real impact of losing or wining in trading...

mlawson71
Dec 13 2015 at 08:34
1487 postów
Practicing what you've learned on a demo account is a very necessary thing, but it's different when you trade on a live account. Knowing that you're dealing with real money definitely affects one's trading decisions.

Apip Saepudin (Apipfx)
Dec 14 2015 at 14:16
13 postów
mlawson71 posted:
Practicing what you've learned on a demo account is a very necessary thing, but it's different when you trade on a live account. Knowing that you're dealing with real money definitely affects one's trading decisions.


Agree. You need to change your mindset when you're about to trade with your own money. Start it first and trade it carefully, use everything that you've learned from demo account. The impact of winning or losing in real account is more affecting than the demo one.

Devhuti
Dec 15 2015 at 11:26
94 postów
correct apip .people are loosing money with real money.

Jaco Ferreira (JacoAF)
Dec 16 2015 at 07:31
130 postów
I feel there are two major differences between trading a Demo Account vs. trading a Live Account. And in my opinion it does not matter if you trade manually or with an EA, these factors still affect the way you trade:

Firstly...

With a Demo Account you trade with 'pretend money' and therefore you will take greater risks, i.e. large Stop Loss, or none at all and large Lot Sizes, etc. This 'risk-it-all' attitude will have no impact on a trader's emotions, as the money is not real. So you will have no FEAR of losing a trade or giving back profits by not using stop losses or take profit levels. You will have a great appetite for GREED so you keep your losing trades open through huge drawdowns and let your profits run too far for that 'home-run monster trade'. You will keep the HOPE alive while sitting through a massive losing trade in case the market turns in your favour. You will have take REVENGE on the market for that last losing trade by doubling down on the next... with 'great balls-of-steel'. You will not PANICK during volatile trading like NFP's or rate decisions if your trades run against you. You will feel ELATED when you gambled on a big trade and won, but oddly you will never feel SAD when you lose.... because why would you, its only a Demo Account, and if you blow the account, you just quickly open another, and gamble on...

This may seem a bit extreme, but most new traders don't even realize they go through this lack of real trader emotions, which breeds a culture of excessive risk-taking in them, before they trade with a Real Account. And then they get absolutely hammered by an emotional rollercoaster of a ride in their first week or two of trading with real money on a Real Account. This in my opinion is the biggest reason most new traders fail horribly with their first Real Account (or even few accounts).


Secondly...

There is a noticeable difference in the speed of execution of orders between a Demo Server and a Live Server. When you trade on a Demo Server, the orders get filled immediately by the actual Demo Server of your broker. So you basically have a two-way transaction route from your PC to your Broker's Demo Server. And just clarify I'm talking about Forex here not Stocks or Options.

With a Real Account this works completely different. Your order will go from your PC to your Broker's Live Server, where it will then be passed onto a 'Market Maker' or ECN Broker (unless your broker is already an ECN Broker), which is mostly a large bank or financial institution that can deal directly with an EBS (Electronic Brokering Service) machine or Reuters Dealing Spot-Matching machine to find a willing Buyer or Seller for your order. Once an order is matched the filled order instruction then gets passed all the way back in reverse-order to your PC. Now this process happens extremely fast in milliseconds. The problem is that there are millions (if not billions) of these orders flowing to and from the EBS and Reuters machines all over the world. During times of high volatility the volume of orders can be so great that your order sits in a queue and wait to be filled, and this is where the delay comes into play. Ever wondered why you get 'Re-quotes' and slippages or markets that run straight through your Stop-Loss or Take Profit levels without triggering them. This is the reason. It has nothing to do with Brokers trading against clients or 'Stop Hunting'. It's just the way an inter-connected electronic brokering market works.

Think of it this way, trading on a Demo Server is like having your own personal bank where there are no queue (line of people waiting to be served). Trading a Live Server is like going into a bank and there is a long queue of people waiting to be served before you. The effect is you have to wait (delay in order execution) or in some cases you don't' get served due to too many people in line and the bank closes (slippage). This is a simple analogy, but it kind of puts it in perspective.


I'm not a pro, but I paid my school fees in the trading world, and my advise to new traders is when practicing on a demo server you actually try your hardest to trade like you would if it is real money. Keep your risk low, use stop-losses correctly, use take-profits correctly and apply a good risk/reward strategy. I would advise not to use large lot sizes or high leverage (try not to use leverage above 200). Develop your own Trading Plan that spells out how and when you trade and what your Risk and Money Management plan would be. Create a set of rules that govern the actions of your trading plan. This helps to keep you disciplined and keep your emotions in check. And develop a Trading Strategy (rules for actual order entry, order management and order exit) and practice this on your demo server. A Demo Account is meant to used to prepare yourself as best you can before going live.

But once you start trading live, only experience will make you a successful trader. It's like training to be a Soldier, you go through rigorous, tough training for months, but nothing can train you for the emotions you experience when in a battle for life or death. Trading a live account is similar. You will be fighting for your 'Trading Life' out there...


Anyway, before I start writing a novel, I think I'm done ranting on about this. But I hope this may shed some light to new traders on what they can expect going from a Demo Account to a Live Account. Good luck trading out there guys, and may you be profitable on your next trade...


Cheers
Jaco Ferreira


Keep it simple, be disciplined, get rich slowly and above all protect your equity!
mlawson71
Dec 16 2015 at 07:46
1487 postów
Apipfx posted:
mlawson71 posted:
Practicing what you've learned on a demo account is a very necessary thing, but it's different when you trade on a live account. Knowing that you're dealing with real money definitely affects one's trading decisions.


Agree. You need to change your mindset when you're about to trade with your own money. Start it first and trade it carefully, use everything that you've learned from demo account. The impact of winning or losing in real account is more affecting than the demo one.


Absolutely. I've long noticed that I am much more cautious, sometimes too cautious even, when I'm trading with a live account.

kricka
Dec 28 2015 at 02:13
92 postów
mlawson71, yes that is the way a live account affects us. We start thinking more about protecting the account and not to take too many unnecessary chances to jeopardize it. RMM protection of the account becomes suddenly more in focus and learning about how it works and how it can become an advantage in our trading. There is good info to be had at RMMRobot.com about this subject, how to protect the trading account regardless of the platform or the broker we use.

" Lock in the profit and minimize the draw down "
PTG (ProTradersGroup)
Dec 28 2015 at 03:30
386 postów
It doesn't matter you trade demo or real but how your system works!

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