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Is a demo account really neccassary?
Uczestnik z Jan 14, 2010
541 postów
Aug 05, 2012 at 07:44
What do you think? Nowadays, when you can open an account with as minimal as $1 deposit, does a demo account works for the best interest of the trader or not?
I will clarify; the point of a demo account is to get a feel of forex trading, however it creates the psychological illusion of not caring of any losses/wins and taking enormous risk without having to confront consequences (psychological side).
Short term, a new forex trader won't need to deposit any funds to try trading, however longer term, he/she is most likely to lose his/her first deposit after trading a demo as those are 2 different trading environments.
So why not start with a real account in the first place? A demo account will just make a newbie trader over confident thus causing him to deposit more than what he/she would deposit for testing purposes in the first place. Therefore, I think a demo account is simply disastrous for new traders and is actually achieving the opposite of what it should.
I will clarify; the point of a demo account is to get a feel of forex trading, however it creates the psychological illusion of not caring of any losses/wins and taking enormous risk without having to confront consequences (psychological side).
Short term, a new forex trader won't need to deposit any funds to try trading, however longer term, he/she is most likely to lose his/her first deposit after trading a demo as those are 2 different trading environments.
So why not start with a real account in the first place? A demo account will just make a newbie trader over confident thus causing him to deposit more than what he/she would deposit for testing purposes in the first place. Therefore, I think a demo account is simply disastrous for new traders and is actually achieving the opposite of what it should.
forex_trader_83402
Uczestnik z Jul 05, 2012
23 postów
Aug 05, 2012 at 11:23
But demo accounts are andavantageous for experimenting new skills or strategies. We can test new strategies without risking money.
Uczestnik z Jan 14, 2010
541 postów
Aug 05, 2012 at 14:19
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.
Uczestnik z Jan 14, 2010
541 postów
Aug 06, 2012 at 06:58
I would add that a demo account is good for estimating a trading idea's possibility, however it fails to measure: slippage, execution and real pricing (spreads) which can have an enormous impact on a trading system.
Uczestnik z Jul 03, 2012
178 postów
Aug 06, 2012 at 09:01
I prefer PaxForex No Deposit Bonus. You get $200, and the money you make you may keep and it may be transferred to your real account. It makes much more sense to me and you don't waste your time.
Pax puts the X in Forex.
forex_trader_83402
Uczestnik z Jul 05, 2012
23 postów
Aug 06, 2012 at 09:46
TheLastBear posted:
I prefer PaxForex No Deposit Bonus. You get $200, and the money you make you may keep and it may be transferred to your real account. It makes much more sense to me and you don't waste your time.
Yes, I agree with you. No deposit bonus are good for newbies. I am too using one.
Aug 06, 2012 at 10:19
Demo Accounts are an absolutely necessity for new traders, when I opened my first one last year, I lost $5000 lol obviously I was still learning and still am actually, I hate to think how much I would have lost had I gone in feet first.
forex_trader_76116
Uczestnik z May 03, 2012
31 postów
Aug 15, 2012 at 09:06
(edytowane Aug 15, 2012 at 09:07)
I have traded both a Live and Demo account. I feel like I managed to get a better grasp of my system through using a demo account. I understand that the feeds are not the same, however it helped me develop my ideas. I never thought of it as a quick money making scheme nor did I take huge risks with the demo account, I treated it as if it was real money which I believe is what most people do wrong.
Uczestnik z Jan 14, 2010
541 postów
Aug 15, 2012 at 12:55
btate91 posted:
I treated it as if it was real money which I believe is what most people do wrong.
I think that's exactly the problem! People starting to trade with a demo account cannot treat it as a real account simply because they have never experienced with a real account.
All in all, a demo is very useful as long as you know it's just that - a demo.
Uczestnik z Jul 19, 2020
749 postów
Jun 07, 2021 at 04:29
Yes demo is very important for both newbie and experienced traders. Without testing your strategy in demo it's not wise to use it in live trading as you don't know how the strategy works.
Uczestnik z Jul 23, 2020
816 postów
Jun 07, 2021 at 17:57
It’s important if you don’t want to lose money unnecessarily.
Uczestnik z Jun 17, 2020
6 postów
Jun 15, 2021 at 10:55
I think demo accounts are great for having a proper learning experience and practice. A newbie can’t always handle the pressure of a live account and I see no harm with demos where they don’t have to worry about losing their money.
Uczestnik z Jun 16, 2021
9 postów
Jun 16, 2021 at 05:24
For me, demo accounts have proven to be a great medium to practice. They have helped me in getting to know about the trading conditions without any risk of actual money and I consider it one of the best sources of learning especially for beginners.
Uczestnik z May 27, 2021
8 postów
Jul 05, 2021 at 12:18
Demo account is not necessary but it can help you understand the trading market in a better way, that too without risking your money. In my initial days, I demo traded for 3 months just to be confident enough before going ahead with the live accounts. I learned almost everything from trading to spreads and how actually the indicators are used. These things help you in your future.
Uczestnik z Jul 23, 2020
696 postów
Jul 10, 2021 at 02:29
It is very important, especially for beginners.
Uczestnik z Mar 17, 2021
494 postów
Dec 18, 2021 at 20:21
siochauland posted:
Demo account is not necessary but it can help you understand the trading market in a better way, that too without risking your money. In my initial days, I demo traded for 3 months just to be confident enough before going ahead with the live accounts. I learned almost everything from trading to spreads and how actually the indicators are used. These things help you in your future.
I think it is very necessary to learn how to trade.
Uczestnik z Mar 16, 2021
447 postów
Dec 20, 2021 at 02:07
Newcomers need to use the demo platform. Basic knowledge can be gained in this. And if you are not interested in demo trading, which means you have no interest in profit/loss, then you can use a mini account.
Emotion will work even if it is a little bit. We have to strengthen this place.
Emotion will work even if it is a little bit. We have to strengthen this place.
Dec 20, 2021 at 12:00
(edytowane Dec 20, 2021 at 12:02)
ForwardX posted:
Yes, it helps in making aware of the trading environment as well as helps to test the trading strategies before going live.
I agree - see demo trading as a trial run without the added pressure of losing money. Your system should be tested thoroughly before going live. The main thing for me is to gain trust in your system, then you eliminate most of your personal inputs that can have a big negative influence on your trading success. I would go so far as to say you need at least a 100 consistent trades, then you do not have to guess about the profitability of your system.
It is also a good way to compare different/new currencies before live trading.
