I would advise people to get professional training if they can,before they enter live markets.Demo is fine to test different strategies.One way to prepare you for live markets is to work with a small amount of cash in your demo,say 5000 or less,this way you will be more careful with how your trading and you will feel a bit of pressure to protect it.
Demo accounts are for the purpose of learning the platform and for testing strategies and to give new traders experience.
Will it give the trader any proof of how good of a trader he is? No, only a real live account will, as there are so many other aspects coming into the picture when trading live. Just to name a few: the emotional aspect of knowing that real money is at stake, to not overtrade when making mistakes, to have risk management in place on both individual positions and on the trading account as well.
Some info can be read at RMMRobot.com about risk management which should be regarded as a #1 priority to be informed about before trading on a live account. There are so much money to be saved especially for new traders decided to go live after practicing demo trading for a few months, to be be well informed on this subject.
When it comes to the size of the trading account in a live trading environment, for a new trader I would suggest $500 because this will be enough to have proper money management without being underfunded, if the stakes are 0.01 lots or 1000 in volume per position.
I would not recommend you open an account with real money until you can double the money in your demo account. If your strategy is not good enough to do that, then what is the point in putting in real money?
The demo account is for practising what you've already learned in theory, gaining experience and an understanding how the market works, as well as testing trading strategies. It's an invaluable tool for both newbies and experienced traders and that step of the learning process really, really shouldn't be skipped. That said, you can only learn how to deal with the psychological pressures of trading on a live account. Kieran's suggestion about opening a small live account after you feel confident enough with trading on a demo account is a great idea in that regard.
It will take a long time to double your account,unless you have some edge and a real understanding of how the markets work,the only way you will get a real understanding is through proper education,you need to understand how this works from the inside before you can have any chance of success.Otherwise you will be an easy target.Its your task to find someone with proven success and that has worked in a Financial Institution or similar.One other topic that I get asked often ,how much should I put into a live account starting off?As little as possible until you get used to the added pressure of trading live.
As a new trader I am trying to develop strategies in demo accounts before registering for real accounts. Is this enough though for me to be ready to enter the real markets?
No it is not enough. If you want to trade for yourself you need a mentor. Someone who trades for a living. There are many educators out there who do not trade. Choose your mentor wisely. If they are trading for a living, then you will surely succeed with such a mentor.
Your mindset. I believe this is the biggest reason why many people fail in trading. So if you can focus on the psychology of trading, it will serve you well.
Demo account is good if you are learning how to place your trade and the mechanics of how trading works. However, if you are ready to start testing a real strategy, I will advise you open a small live account for about €100 or $100 and start testing your strategy with 1 micro lot. If you lose 10 pips trading 1 micro lot, you lose $1. No big deal. Your goal is to become consistent.
If you want to learn more, contact me and we can work something out. I wish you all the best with your pursuit for 2016.
No, demo account definitely isn't enough. The demo account is a very important, unavoidable step in learning how to trade, but it's just one (admittedly big) step on a long journey. Once you feel confident enough to open a live account you do need to learn how to trade with real money while risking as small a sum as possible.
Ostrzeżenie o wysokim ryzyku: handel walutami obcymi wiąże się z wysokim poziomem ryzyka, który może nie być odpowiedni dla wszystkich inwestorów.
Dźwignia stwarza dodatkowe ryzyko i ryzyko straty. Zanim zdecydujesz się na handel walutami, dokładnie przemyśl swoje cele inwestycyjne, poziom doświadczenia i tolerancję ryzyka.
Możesz stracić część lub całość początkowej inwestycji. Nie inwestuj pieniędzy, których nie możesz stracić. Zbadaj ryzyko związane z handlem walutami i zasięgnij porady niezależnego doradcy finansowego lub podatkowego, jeśli masz jakiekolwiek pytania.
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