I don't think this is true at all. You can get a good idea if a strategy works or not on demo to at least give yourself a good chance of getting somewhere on a live account and use the confidence derived from having a large dataset to prevent doubts creeping in and wrecking good trades.
If you can't spot the liquidity then you are the liquidity.
It’s good for practice and creating strategies but don’t rely on it too much as live trading is quite different. The difference arises because of slippage, execution, difference in spreads, etc. All the factors can impact the trading system. After I had a strategy in hand, I moved to a micro live trading account.
I spent 3-4 month on demo trading. Honestly, I got bored of it. So, I switched to live trading with a tiny capital. I blew up my accounts multiple times but the experience & learning was worth it. Do not cling too much on a demo account. If you have a strategy, you can begin live trading.
Any beginner trader can first start with a DEMO account to get familiar with the MT4 trading platform. It is not a good idea to jump directly to REAL money account.
Depending on your trading strategy you want to use and starting capital either you can choose a cent LIVE account or continue to trade in a DEMO account until you gain confidence fully before switching to LIVE.
Most importantly if you are trading in DEMO and you can maintain a good pip expectancy per trade like 5 pips per trade or more and you are placing good number of trades weekly and monthly, then you don't need to trade in LIVE account at all. You can just use a trade copier to copy trades from DEMO to LIVE and continue to trade in DEMO account only.
I am telling this after a trading experience of 15 years or more. It is not easy to jump start and start making money consistently as usually newbie traders think. Many times even after years of experience you may fail sometimes during bad markets when your trading strategy may not work and so sticking with DEMO is a very good idea to test your strategy fully before going LIVE and switch back and forth from DEMO to LIVE and vice-versa to survive in forex trading during bad market conditions.
Nomocracy posted: There is always a risk when starting out in forex trading. However, demo accounts can be highly helpful in reducing this risk. Demo accounts allow you to trade without risking real money and also give you the opportunity to test out new strategies before making any real investments.
Yes, Demo accounts give us the liberty to chisel our trading skills without losing any real money so one should stick to it until one develops enough confidence to trade on live accounts.
Demo trading is necessary in order to get familiar with the environment of the market and to know the currencies. But demo trading will not really help you in making profits. For that you have to enter the marketplace and then make efforts and mistakes there, in order to learn from them.
If you consider DEMO account as REAL account, then there should not be any difference if you trade in DEMO or REAL. You need to follow the same rules in REAL account which you follow in DEMO account and if you can't follow the same rules in REAL Account trading, then definitely switch back to DEMO account and continue to trade in DEMO account.
But if you don't have any of your rules for your profitable trading strategy, then just continue with DEMO trading account only until you find a profitable strategy.
You have to be flexible about Forex trading by accepting the market condition as it is and try to make the best use of both the market sides because you have the option to trade on both bearish and bullish market.
Jumping directly on the live trading is the mistake that traders first commit. Traders should look for knowing the platform and understanding the market first and then they should jump into trading. Otherwise, gaining from the Forex market will be really difficult.
It’s up to the trader to choose if they wish to demo trade or directly start live trading. Many do and many don’t. Demo trading can help the trader understand the process, figure out their trading style and backtest different strategies to select the one that stands out the most. However, traders need to know that demo trading doesn’t prepare for real loss.
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.