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DEMO ACCOUNT vs LIVE ACCOUNT

staylor
Apr 11 2017 at 07:39
9 postów
togr posted:
snapdragon1970 posted:
You obviously don't know the difference.


For EA there is no big difference trading demo vs. real. On good broker there are very similar conditions.
For manual trading there is a psychological aspect as you cant accept loose of 10000 real dollars compared to demo:)


Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.

xgavinc
Apr 11 2017 at 08:15
235 postów
PanMajk posted:
Agree there is no big difference with EA short term, but there is a difference. For example, on a demo comparison I tried, demo gave me no gaps or slippage and the swap rates lagged behind the real account. I also had no-fills on real (out of price errors) while demo filled orders regardless (causing the most impact). These add up quickly to a huge difference in outcome (note I say outcome not strategy or method).


Does it really matter when somebody trades manually on daily and higher time frames?


I wouldn't say it matters either way, it depends on the trader, their strategy and how much time they have to trade. Traders who are busy throughout the day (either working a non-trading job, advising clients, etc) would likely trade 4H+ time frames, while others trading news, listenting to the squawk box and sit at their desk for the whole work day will use all time frames, lower approaching news events, and longer on macro-economic fundamentals.

I find that generally when holding trades for longer periods of time it's best to trade on longer time frames, inversely if you are in and out of trades within an hour, shorter time frames work best. My EA is set on a 1H time frame, but when I manually trade I set my time frame to 4H. I'm more an investor trader though (I usually hold trades for 3 months or more). Best to get another perspective from an 'active trader' here.

For every loss there should be at least an equal and opposite profit.
snapdragon1970 (snapdragon1970)
Apr 11 2017 at 11:27
1944 postów
PanMajk posted:
Agree there is no big difference with EA short term, but there is a difference. For example, on a demo comparison I tried, demo gave me no gaps or slippage and the swap rates lagged behind the real account. I also had no-fills on real (out of price errors) while demo filled orders regardless (causing the most impact). These add up quickly to a huge difference in outcome (note I say outcome not strategy or method).


Does it really matter when somebody trades manually on daily and higher timeframes?


Most of what you see on the smaller time frames is noise, unless your scalping on the 1min timeframe.

"They mistook leverage with genius".
staylor
Apr 13 2017 at 12:04
9 postów
IoganSteig posted:
staylor posted:
togr posted:
snapdragon1970 posted:
You obviously don't know the difference.


For EA there is no big difference trading demo vs. real. On good broker there are very similar conditions.
For manual trading there is a psychological aspect as you cant accept loose of 10000 real dollars compared to demo:)


Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.


Yes, you are absolutly right. When I first started trading in the forex market. I did not understand anything in MT 4. And after working for six months in the demo, I understood how this system works and was able to try out different ways of analyzing the market. And choose a convenient trading strategy for me. However, in a demo, money is not real and there are no risks. Therefore, psychologically demo can not be seen as a real market, though demo displays the actual state of the market.


Very well explained! As I said demo accounts are good for understanding the platform it is natural because there is a huge difference between theoretical and practical knowledge. And practical side has more long lasting and effective impact on the mind of a person. Psychologically also demo accounts gives a false imprint. Hence, a step to being a successful trader is learning in demo account and controlling emotions in real account.

mlawson71
Apr 15 2017 at 11:36
1487 postów
staylor posted:

Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.


I agree. One should never invest more than they can afford to lose. It's an even worse idea to go into debt to invest in forex.

staylor
Apr 18 2017 at 10:46
9 postów
mlawson71 posted:
staylor posted:

Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.


I agree. One should never invest more than they can afford to lose. It's an even worse idea to go into debt to invest in forex.


Completely agreed. rather than being doomed under the burden of debt, it is always better to trade carefully keeping in mind what all you can risk.

snapdragon1970 (snapdragon1970)
Apr 18 2017 at 11:12
1944 postów
Forming good habits like setting a stop loss before you hit the Buy button, now you are protecting your capital, you might get the entry wrong a few times, that's something you have to except, then when you get it right hold as long as possible, I started trading with extra cash I had from working two jobs, I started with 100euro on a live account because I was well informed of the possible outcomes, I could afford to lose it and live trading really tests you especially when your new.

"They mistook leverage with genius".
hjacob
Apr 25 2017 at 09:06
30 postów
snapdragon1970 posted:
Forming good habits like setting a stop loss before you hit the Buy button, now you are protecting your capital, you might get the entry wrong a few times, that's something you have to except, then when you get it right hold as long as possible, I started trading with extra cash I had from working two jobs, I started with 100euro on a live account because I was well informed of the possible outcomes, I could afford to lose it and live trading really tests you especially when your new.


Absolutely right and a wise decision to start with only that much amount which you can afford to lose.

mlawson71
Apr 25 2017 at 11:45
1487 postów
snapdragon1970 posted:
Forming good habits like setting a stop loss before you hit the Buy button, now you are protecting your capital, you might get the entry wrong a few times, that's something you have to except, then when you get it right hold as long as possible, I started trading with extra cash I had from working two jobs, I started with 100euro on a live account because I was well informed of the possible outcomes, I could afford to lose it and live trading really tests you especially when your new.


I wish I had the foresight and common sense to start that way. My initial account was larger than that, and, as you can imagine, I lost it.

snapdragon1970 (snapdragon1970)
Apr 25 2017 at 15:22
1944 postów
I probably would have started with a larger account if I didn't take the advise I was listening to ,I think it is really difficult for anyone starting off in FX, I started in stocks because I though FX was just random and that's what most of my friends were trading. I couldn't see any value.

"They mistook leverage with genius".
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