Is demo trading enough before real account?

Dec 30, 2015 at 14:46
Przeglądane 10,628
283 Replies
Uczestnik z Oct 12, 2016   855 postów
Oct 30, 2016 at 07:27
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks
It depends on which timeframe you use for trading your system. For trading in H4 or Daily timeframes, 3 months demo trading should be enough before going to live provided if you have thoroughly and honestly backetested your system in 'Forex tester' at least for 2 years of past data before even trading in demo account. That't it.

Backtesting the system is very very important. Without backetsting a system, forward testing in demo account for years also may not help anything to be successful in forex.
Artificial General Intelligence
Uczestnik z Oct 01, 2015   47 postów
Nov 01, 2016 at 07:32
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks

I've been trading different demos for almost an year till I decided to open a live account. I just wanted to know exactly what I do when it comes to real money
Greggy
forex_trader_169700
Uczestnik z Dec 30, 2013   158 postów
Nov 01, 2016 at 07:59
Not a stupid question at all, very sensible question if anything. Don't be hasty, trade demos as long as needs be until you can see consistency. I'm 53 years old and have been trading demos for 5 years and I'm still learning, getting closer but still learning. Think of it, like doing a Degree or any professional qualification.

Find a good broker who will allow you to open unlimited demo accounts and who doesn't pester you about opening a live account. Download MT4 from metatrader4.com and type in address FxPro.com-Demo02. You can open as many demos as you want. Start with what is realistic, pointless starting with 500000 if you do not have 50000 to trade with. I tend to open demos with as little as $100, $500 as that is what I would expect to start with. You'll blow your account numerous times, but just open another until you get that consistency.

The times I have opened a live account I've lost my money. Call it a coincidence but each time was during Flash Crashes. First one SNB and my broker Alpari went bankrupt, second a few weeks ago on GBPUSD. So if you are new to trading avoid opening a live account for some years and avoid pushy brokers!!!

Good Luck & Happy Trading!!!
Uczestnik z Dec 11, 2015   1487 postów
Nov 01, 2016 at 11:56
One does have to open a live account at some point though. There are some things one can't learn on a demo account, especially how to deal with the stress that is related to trading with real money.
Uczestnik z Oct 12, 2016   855 postów
Nov 01, 2016 at 12:04
CliveCampbell posted:
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks

I've been trading different demos for almost an year till I decided to open a live account. I just wanted to know exactly what I do when it comes to real money
Ask yourself 3 questions:
1.Do you have a solid trading system which you have backtested with sufficient past data with positive results?....Yes
2.While trading in your demo account are you able to follow the rules of your same system exactly what you did in backtesting?....Yes
3. While trading in demo are you trading just by your emotions whenever you feel like without any solid proven system?...No

If your answers match with my answers, then keep trading on Demo until you produce consistent profitable results which you are happy with it before going to live.

If any of the answers don't match, then trading in demo even for 5 to 10 years may not help and chances of seriously failing in a live account are very much there once you switch from demo to live.

Finally, if you are in live account trading, then keep following your system exactly what you did in demo account and keep improving your system to adopt to changing market conditions.
Artificial General Intelligence
Uczestnik z Sep 12, 2015   1948 postów
Nov 01, 2016 at 14:18
leo23 posted:
CliveCampbell posted:
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks

I've been trading different demos for almost an year till I decided to open a live account. I just wanted to know exactly what I do when it comes to real money
Ask yourself 3 questions:
1.Do you have a solid trading system which you have backtested with sufficient past data with positive results?....Yes
2.While trading in your demo account are you able to follow the rules of your same system exactly what you did in backtesting?....Yes
3. While trading in demo are you trading just by your emotions whenever you feel like without any solid proven system?...No

If your answers match with my answers, then keep trading on Demo until you produce consistent profitable results which you are happy with it before going to live.

If any of the answers don't match, then trading in demo even for 5 to 10 years may not help and chances of seriously failing in a live account are very much there once you switch from demo to live.

Finally, if you are in live account trading, then keep following your system exactly what you did in demo account and keep improving your system to adopt to changing market conditions.

Make sure your system allows for broker intervention in Live account eg:lost connections,spread widening ,re quotes.Trade with a small account on Live and build slowly,tilt the odds in your favour.
"They mistook leverage with genius".
Uczestnik z Oct 08, 2015   35 postów
Nov 02, 2016 at 07:33
snapdragon1970 posted:
leo23 posted:
CliveCampbell posted:
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks

I've been trading different demos for almost an year till I decided to open a live account. I just wanted to know exactly what I do when it comes to real money
Ask yourself 3 questions:
1.Do you have a solid trading system which you have backtested with sufficient past data with positive results?....Yes
2.While trading in your demo account are you able to follow the rules of your same system exactly what you did in backtesting?....Yes
3. While trading in demo are you trading just by your emotions whenever you feel like without any solid proven system?...No

If your answers match with my answers, then keep trading on Demo until you produce consistent profitable results which you are happy with it before going to live.

If any of the answers don't match, then trading in demo even for 5 to 10 years may not help and chances of seriously failing in a live account are very much there once you switch from demo to live.

Finally, if you are in live account trading, then keep following your system exactly what you did in demo account and keep improving your system to adopt to changing market conditions.

Make sure your system allows for broker intervention in Live account eg:lost connections,spread widening ,re quotes.Trade with a small account on Live and build slowly,tilt the odds in your favour.

why it needs to allow broker intervention? you mean to be prepared for such thing?
Trading is like football - if you don't practice you can't win the game!
Uczestnik z Feb 12, 2016   427 postów
Nov 02, 2016 at 07:36
mlawson71 posted:
One does have to open a live account at some point though. There are some things one can't learn on a demo account, especially how to deal with the stress that is related to trading with real money.

I agree with mlawson71. What is the point of trying your best, testing a lot of strategies, analyzing trading styles when you really know nothing about live trading. Even if the demo trading is the first step – you have to make the next one at some stage. Even if you just put a little credit in the beginning – you have to do live trading, to feel it, to feel the stress or even to lose a small amount of your capital.

What I am trying to say is to be fully prepared and sure in what you are doing when applying the skills learnt in the live trading.

It is simple – test the demo, than test the live – be prepared and get the profits :)
Accept the loss as experience
Uczestnik z Sep 12, 2015   1948 postów
Nov 02, 2016 at 17:58
GFernandez78 posted:
snapdragon1970 posted:
leo23 posted:
CliveCampbell posted:
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks

I've been trading different demos for almost an year till I decided to open a live account. I just wanted to know exactly what I do when it comes to real money
Ask yourself 3 questions:
1.Do you have a solid trading system which you have backtested with sufficient past data with positive results?....Yes
2.While trading in your demo account are you able to follow the rules of your same system exactly what you did in backtesting?....Yes
3. While trading in demo are you trading just by your emotions whenever you feel like without any solid proven system?...No

If your answers match with my answers, then keep trading on Demo until you produce consistent profitable results which you are happy with it before going to live.

If any of the answers don't match, then trading in demo even for 5 to 10 years may not help and chances of seriously failing in a live account are very much there once you switch from demo to live.

Finally, if you are in live account trading, then keep following your system exactly what you did in demo account and keep improving your system to adopt to changing market conditions.

Make sure your system allows for broker intervention in Live account eg:lost connections,spread widening ,re quotes.Trade with a small account on Live and build slowly,tilt the odds in your favour.

why it needs to allow broker intervention? you mean to be prepared for such thing?
Be prepared for such things and change brokers if your not happy with the service.
"They mistook leverage with genius".
Uczestnik z Oct 01, 2015   47 postów
Nov 03, 2016 at 07:21
mlawson71 posted:
One does have to open a live account at some point though. There are some things one can't learn on a demo account, especially how to deal with the stress that is related to trading with real money.

You are absolutely right. You can never get that feeling like trading with real money
Uczestnik z Oct 08, 2015   35 postów
Nov 04, 2016 at 09:04
snapdragon1970 posted:
GFernandez78 posted:
snapdragon1970 posted:
leo23 posted:
CliveCampbell posted:
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks

I've been trading different demos for almost an year till I decided to open a live account. I just wanted to know exactly what I do when it comes to real money
Ask yourself 3 questions:
1.Do you have a solid trading system which you have backtested with sufficient past data with positive results?....Yes
2.While trading in your demo account are you able to follow the rules of your same system exactly what you did in backtesting?....Yes
3. While trading in demo are you trading just by your emotions whenever you feel like without any solid proven system?...No

If your answers match with my answers, then keep trading on Demo until you produce consistent profitable results which you are happy with it before going to live.

If any of the answers don't match, then trading in demo even for 5 to 10 years may not help and chances of seriously failing in a live account are very much there once you switch from demo to live.

Finally, if you are in live account trading, then keep following your system exactly what you did in demo account and keep improving your system to adopt to changing market conditions.

Make sure your system allows for broker intervention in Live account eg:lost connections,spread widening ,re quotes.Trade with a small account on Live and build slowly,tilt the odds in your favour.

why it needs to allow broker intervention? you mean to be prepared for such thing?
Be prepared for such things and change brokers if your not happy with the service.

Got your point, yes, that's right - not to be caught by surprise. If I prove a broker intervention, will immediate change the broker as I don't accept this.
Trading is like football - if you don't practice you can't win the game!
Uczestnik z Aug 10, 2016   8 postów
Nov 09, 2016 at 11:04
I always thought that demo can never be enough before real, and mainly it is so due to trading psychology. Demo account is a good thing for complete newcomers only to get used to interface and know how to work with it
Uczestnik z Dec 11, 2015   1487 postów
Nov 11, 2016 at 10:38
Demo is certainly not enough to learn to make profits consistently, but it's the best start one can get.
Uczestnik z Apr 07, 2015   55 postów
Nov 13, 2016 at 08:00
mlawson71 posted:
Demo is certainly not enough to learn to make profits consistently, but it's the best start one can get.

totally agree 😄
Uczestnik z Nov 14, 2016   13 postów
Nov 15, 2016 at 07:54
I see that answer for primary question was provided many times, so I can only confirm it with my experience of trading too.
Uczestnik z Oct 01, 2015   47 postów
Nov 15, 2016 at 12:07
This discussion turned out to be quite comprehensive which is great!
Uczestnik z Oct 01, 2015   47 postów
Nov 15, 2016 at 12:08
leo23 posted:
CliveCampbell posted:
Bohdan73 posted:
hi guys, maybe a bit stupid question, but how long approximately a trader should practice on demo before start a live account? I know it depends on many factors, but would like to know your experience. Thanks

I've been trading different demos for almost an year till I decided to open a live account. I just wanted to know exactly what I do when it comes to real money
Ask yourself 3 questions:
1.Do you have a solid trading system which you have backtested with sufficient past data with positive results?....Yes
2.While trading in your demo account are you able to follow the rules of your same system exactly what you did in backtesting?....Yes
3. While trading in demo are you trading just by your emotions whenever you feel like without any solid proven system?...No

If your answers match with my answers, then keep trading on Demo until you produce consistent profitable results which you are happy with it before going to live.

If any of the answers don't match, then trading in demo even for 5 to 10 years may not help and chances of seriously failing in a live account are very much there once you switch from demo to live.

Finally, if you are in live account trading, then keep following your system exactly what you did in demo account and keep improving your system to adopt to changing market conditions.

Good points, thanks for sharing! 😄
Uczestnik z Mar 31, 2015   45 postów
Nov 15, 2016 at 16:02
To me demo is enough before starting with real money but only if a few books and a trading course is added to the list 😄
Uczestnik z Dec 11, 2015   1487 postów
Nov 16, 2016 at 10:09
There's generally no other way but to move to a live account sooner or later. And regardless of how hard people train on a demo usually the first few months on a live account are difficult and not exactly profitable. Still, demo account training is absolutely necessary, as without the first few months wouldn't be difficult, they'd be a disaster.
Uczestnik z Nov 14, 2016   13 postów
Nov 18, 2016 at 09:10
mlawson71 posted:
There's generally no other way but to move to a live account sooner or later. And regardless of how hard people train on a demo usually the first few months on a live account are difficult and not exactly profitable. Still, demo account training is absolutely necessary, as without the first few months wouldn't be difficult, they'd be a disaster.

You are totally right. And I think new traders should also keep in mind strongly from the very beginning that their prime task in real FX activity is not to get quick gains and not even adjust well tried demo strategy onto live, but first of all it is not to wipe out their wish to be traders and thus not to get to those notorious 95% or something alike.
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