street_pips posted: Most traders on forums advise new traders to start on a demo account.
I don't think this is good advice. Where is the respect for money on a demo?
Let's see why.
The most important aspect of trading is knowledge. Has anyone seen that movie 'the chronicles of narnia the lion the witch and the wardrobe'? If you haven't go see it, there is a part where the boy finds treasure and can't contain himself and becomes a slave to money (gold). If you trade on a demo and have not learned the essence of trading, you will become a slave to a demo. Then your nervous system gets linked to an emotional connection to a demo. If you lose a trade you go back to a demo, if you win, you go to a live. But live only there is no where to go except live and face reality. It's made clear of bad behavior by Pavolv's experiment. Demo creates negative feed back loops. Then how would you learn? Get a real mentor, you don't even know how good you might be, we could be talking about a potential multi-million dollar trader, I mean you, but you gotta get polished. This advice is only for people that see themselves as making it big in trading.
I believe in 'FEAR' , 'PLEASURE', and 'REVENGE'. You do not feel these emotions on a demo, If the market has an interest rate decision you will be nervous in real life, if the market stole your Stop/Loss get revenge and take that money back, revenge trades are ok, and fine and moral. When you make 3pips it's pleasure, when you make 30pips it's pleasure, when you make 300pips in a day, it's pleasure. My first trade in the New York Stock Exchange was a magical moment, it was a silver mining stock that I bought for something like $5.35 a share then it went up to $25 per share in less than a month.
Do you think I would tell you this if it was on a demo? Demo is for some people but fast acting, insightful, mathematical people it may not be. This is a list of what you need in order to be successful. It's in order of importance. 1) Lump sum or income source 2) Personal Income behavior under control. 3) Personal 1-on-1 Access to a trading mentor that understands your style and behavior with money. 4) Action.
You notice how no one talks like this but 90% of traders fail? This is why, no one talks about the most important stuff, which is a mentor and personal income behavior. Did you notice I didn't say 'personal finances'? Finances are loans income is fiat. Sometimes I don't talk because I know a lot of people don't understand then get upset, that's why I don't post here much only years at a time, but maybe I'll change. Get a mentor, if you can't find one learn about sales and persuasion, then persuade them, what is it worth?
Demo port ... My opinion is
1.People who start trading for the first time, who never tried to trade manually before.
2. Used to practice opening and closing orders (buy or sell).
Not suitable for
1. People who think that pressing orders to buy or sell between trading demo port and real money port is the same. - The bar graph and its run up-down will look different. - Your heart (Bravery) to press the orders when using the real money portfolios will be different with the demo port. --------> 'FEAR' , 'PLEASURE', and 'REVENGE'. You do not feel these emotions on a demo.
2. The narcissist, you think ' you can often make profits in the demo portfolio will be able to profit in the real portfolio as well.' - If you open lot over trad on demo port be careful, if you do the same that in your real port will explode easily (lost all money).
So what do you have to do to trade in the real money portfolio?
1. Prepare to lose that money but it must be worthwhile. - Find a broker that can open a portfolio USD (Cent), you can increase your capital from 50 USD to 5,000 USD (Cent). - Practice trading, start trading by pressing the order lot 0.01, not more. - If you want to open another order, just press lot 0.01 only
2. If you practice and can keep your initial capital from wasting in the first 3 months. Gradually increase the lot to 0.02
Piplaws posted: Well, it is also a factor that people are usually afraid to lose their money in the beginning so they kind of choose to trade on demos which works for them. Even if they blow a few accounts, they can earn some experience without losing money.
Yes. A demo is the best option to learn forex without any risks.
Demo trading is recommended until you are well-versed with a platform. But when you get a fair idea, move to micro accounts. They are better to check your capability and trading skills while risking small amounts.
If you are not yet sure with your forex skills to make profits, a demo account is your best place to groom your skills with zero risks. Learn forex trading by doing it with virtual cash and real market data.
I partly agree with the opinion expressed in this post. I totally agree that it is next to impossible to experience psychological side of trading on demo account. Psychology plays crucial role in everything which is related to money and trading is not an exception. The surge of greed, fear is unlikely to happen when you don't risk anything. However, I do see fit in using a demo account in order to test some new trading strategies. Surely, you should backtest the strategy but in addition to it, you need to be sure that it works well in current situation. Market is a fastly developing thing and many strategies that used to work in the past, don't bring any profit today. More than that, I also encourage to use a demo account to get used to trading platform. It gets on my nerves when I try to open a trade but I need to spend time on finding the right button to do this or that thing.
marshallbuchanan posted: Demo trading is recommended until you are well-versed with a platform. But when you get a fair idea, move to micro accounts. They are better to check your capability and trading skills while risking small amounts.
Very good. How well I fit depends on my trading practice. That's why I should use the demo platform.
Guess that the wisest move is to trade on demo. Lots of traders neglect this rule as they're convinced that real practice brings more experience an skills. It's partly so actually. The main objective of demo account is to acquint you with trading activity and mechanics of price changes. The rest is for real trading. To my mind, traders must stay on demo no longer than a month, because it can easily ingulf them and they will never move on a real account. It's so enticing to trade by money, in case you know that it's not your money. Although, trading implies tradding by your money in order to make profits.
Demo trading can’t totally prepare traders to face the market because there is no involvement of emotions and entitlement to the money being traded. However, people who are new and serious about trading should make the most out of demo trading because it can help them enter the market with some trading skills.
ПРЕДУПРЕЖДЕНИЕ О ВЫСОКОМ УРОВНЕ РИСКА: торговля иностранной валютой связана с высоким уровнем риска, который может подходить не для всех инвесторов.
Кредитное плечо создает дополнительный риск и вероятность убытков. Прежде чем принять решение о торговле иностранной валютой, тщательно проанализируйте свои инвестиционные цели, уровень опыта и толерантность к риску.
Вы можете потерять часть или все свои первоначальные инвестиции. Не вкладывайте деньги, которые вы не можете позволить себе потерять. Ознакомьтесь с рисками, связанными с торговлей иностранной валютой, и обратитесь за советом к независимому финансовому или налоговому консультанту, если у вас возникнут вопросы.
Любые данные и информация предоставляются 'как есть' исключительно в информационных целях и не предназначены для торговых целей или консультаций.
Прошлые показатели не являются признаком будущих результатов.