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DEMO ACCOUNT vs LIVE ACCOUNT

staylor
Apr 11 2017 at 07:39
9 príspevkov
togr posted:
snapdragon1970 posted:
You obviously don't know the difference.

For EA there is no big difference trading demo vs. real. On good broker there are very similar conditions.
For manual trading there is a psychological aspect as you cant accept loose of 10000 real dollars compared to demo:)

Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.
xgavinc
Apr 11 2017 at 08:15
235 príspevkov
PanMajk posted:
Agree there is no big difference with EA short term, but there is a difference. For example, on a demo comparison I tried, demo gave me no gaps or slippage and the swap rates lagged behind the real account. I also had no-fills on real (out of price errors) while demo filled orders regardless (causing the most impact). These add up quickly to a huge difference in outcome (note I say outcome not strategy or method).

Does it really matter when somebody trades manually on daily and higher time frames?

I wouldn't say it matters either way, it depends on the trader, their strategy and how much time they have to trade. Traders who are busy throughout the day (either working a non-trading job, advising clients, etc) would likely trade 4H+ time frames, while others trading news, listenting to the squawk box and sit at their desk for the whole work day will use all time frames, lower approaching news events, and longer on macro-economic fundamentals.

I find that generally when holding trades for longer periods of time it's best to trade on longer time frames, inversely if you are in and out of trades within an hour, shorter time frames work best. My EA is set on a 1H time frame, but when I manually trade I set my time frame to 4H. I'm more an investor trader though (I usually hold trades for 3 months or more). Best to get another perspective from an 'active trader' here.
For every loss there should be at least an equal and opposite profit.
kieran (snapdragon1970)
Apr 11 2017 at 11:27
1946 príspevkov
PanMajk posted:
Agree there is no big difference with EA short term, but there is a difference. For example, on a demo comparison I tried, demo gave me no gaps or slippage and the swap rates lagged behind the real account. I also had no-fills on real (out of price errors) while demo filled orders regardless (causing the most impact). These add up quickly to a huge difference in outcome (note I say outcome not strategy or method).

Does it really matter when somebody trades manually on daily and higher timeframes?

Most of what you see on the smaller time frames is noise, unless your scalping on the 1min timeframe.
"They mistook leverage with genius".
staylor
Apr 13 2017 at 12:04
9 príspevkov
IoganSteig posted:
staylor posted:
togr posted:
snapdragon1970 posted:
You obviously don't know the difference.

For EA there is no big difference trading demo vs. real. On good broker there are very similar conditions.
For manual trading there is a psychological aspect as you cant accept loose of 10000 real dollars compared to demo:)

Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.

Yes, you are absolutly right. When I first started trading in the forex market. I did not understand anything in MT 4. And after working for six months in the demo, I understood how this system works and was able to try out different ways of analyzing the market. And choose a convenient trading strategy for me. However, in a demo, money is not real and there are no risks. Therefore, psychologically demo can not be seen as a real market, though demo displays the actual state of the market.

Very well explained! As I said demo accounts are good for understanding the platform it is natural because there is a huge difference between theoretical and practical knowledge. And practical side has more long lasting and effective impact on the mind of a person. Psychologically also demo accounts gives a false imprint. Hence, a step to being a successful trader is learning in demo account and controlling emotions in real account.
mlawson71
Apr 15 2017 at 11:36
1487 príspevkov
staylor posted:

Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.

I agree. One should never invest more than they can afford to lose. It's an even worse idea to go into debt to invest in forex.
staylor
Apr 18 2017 at 10:46
9 príspevkov
mlawson71 posted:
staylor posted:

Agree! psychological aspect is one big difference while trading in demo & live account. I personally feel demo account should be used to get familiar with the trading platform and understanding the technicalities. As while trading in real environment our emotional & mental acts comes into play. So, one must always deposit that much amount of money in real account which he is ready to wipe out.

I agree. One should never invest more than they can afford to lose. It's an even worse idea to go into debt to invest in forex.

Completely agreed. rather than being doomed under the burden of debt, it is always better to trade carefully keeping in mind what all you can risk.
kieran (snapdragon1970)
Apr 18 2017 at 11:12
1946 príspevkov
Forming good habits like setting a stop loss before you hit the Buy button, now you are protecting your capital, you might get the entry wrong a few times, that's something you have to except, then when you get it right hold as long as possible, I started trading with extra cash I had from working two jobs, I started with 100euro on a live account because I was well informed of the possible outcomes, I could afford to lose it and live trading really tests you especially when your new.
"They mistook leverage with genius".
hjacob
Apr 25 2017 at 09:06
30 príspevkov
snapdragon1970 posted:
Forming good habits like setting a stop loss before you hit the Buy button, now you are protecting your capital, you might get the entry wrong a few times, that's something you have to except, then when you get it right hold as long as possible, I started trading with extra cash I had from working two jobs, I started with 100euro on a live account because I was well informed of the possible outcomes, I could afford to lose it and live trading really tests you especially when your new.

Absolutely right and a wise decision to start with only that much amount which you can afford to lose.
mlawson71
Apr 25 2017 at 11:45
1487 príspevkov
snapdragon1970 posted:
Forming good habits like setting a stop loss before you hit the Buy button, now you are protecting your capital, you might get the entry wrong a few times, that's something you have to except, then when you get it right hold as long as possible, I started trading with extra cash I had from working two jobs, I started with 100euro on a live account because I was well informed of the possible outcomes, I could afford to lose it and live trading really tests you especially when your new.

I wish I had the foresight and common sense to start that way. My initial account was larger than that, and, as you can imagine, I lost it.
kieran (snapdragon1970)
Apr 25 2017 at 15:22
1946 príspevkov
I probably would have started with a larger account if I didn't take the advise I was listening to ,I think it is really difficult for anyone starting off in FX, I started in stocks because I though FX was just random and that's what most of my friends were trading. I couldn't see any value.
"They mistook leverage with genius".
fxwisdom1
Apr 26 2017 at 06:44
15 príspevkov
essenn posted:
From my personal experience, A demo account is an accurate representation of a live account, If a Pro trader or A well designed EA run profitably on a Demo account then it's 99.99 percent certain these resulted can be replicated in a Live account.

Discuss.. 😁

Yes I totally agree with you.
Having a good demo account reflects a real account.
There's not much different between demo and real account.
The only different is that it is using your money.
If you have a strategy that took away your emotion, regardless which type of account you have, you will succeed.
hjacob
Apr 28 2017 at 10:14
30 príspevkov
Yes absolutely, demo and live accounts are more or less same. The difference is psychological as while trading in live account our real money is at stake which make one feel more concerned. However, yes having well developed strategy can make you succeed and overcome this psychological barrier. Demo accounts can also be used for testing strategies before going live.
mlawson71
Apr 28 2017 at 11:49
1487 príspevkov
hjacob posted:
Yes absolutely, demo and live accounts are more or less same. The difference is psychological as while trading in live account our real money is at stake which make one feel more concerned. However, yes having well developed strategy can make you succeed and overcome this psychological barrier. Demo accounts can also be used for testing strategies before going live.

There's never any requoting on demo accounts though. That should be taken into account.
ToryBiggins
Apr 30 2017 at 06:57
16 príspevkov
That is a really important point. If you are trading near a news announcement using a demo then you can make loads of 'fake' money but try that on a real account you either trades won't be opened / closeed or there will be HUGE slippage
hjacob
May 03 2017 at 07:37
30 príspevkov
mlawson71 posted:
hjacob posted:
Yes absolutely, demo and live accounts are more or less same. The difference is psychological as while trading in live account our real money is at stake which make one feel more concerned. However, yes having well developed strategy can make you succeed and overcome this psychological barrier. Demo accounts can also be used for testing strategies before going live.

There's never any requoting on demo accounts though. That should be taken into account.

Yes, that’s also a very good point to be mentioned. Requotes are inexistent in demo but one might often get requotes in live account. So always go for the broker that offers least slippage or requotes in live account. If you notice a lot of slippage in live account, then it’s time to switch the broker.
Devhuti
May 03 2017 at 08:43
94 príspevkov
Every day is learning day.
kieran (snapdragon1970)
May 03 2017 at 11:49
1946 príspevkov
The demo contests here are a good tool for learning its not real money but it does put one under pressure to survive and hopefully make some profit, trade every signal or be more conservative, its a month long so don't go crazy on day one.
"They mistook leverage with genius".
mlawson71
May 03 2017 at 12:20
1487 príspevkov
snapdragon1970 posted:
The demo contests here are a good tool for learning its not real money but it does put one under pressure to survive and hopefully make some profit, trade every signal or be more conservative, its a month long so don't go crazy on day one.

Good point. And even if one doesn't take part in an official contest, they can challenge themselves by setting a goal they need to reach by the end of the month.
MrMajk (PanMajk)
May 04 2017 at 06:31
10 príspevkov
hjacob posted:
Yes absolutely, demo and live accounts are more or less same. The difference is psychological as while trading in live account our real money is at stake which make one feel more concerned. However, yes having well developed strategy can make you succeed and overcome this psychological barrier. Demo accounts can also be used for testing strategies before going live.

I cannot disagree, however I feel like when I start live trading, my strategy is going to fail.. with numerous positions in a row so that my start is going to be super hard. I guess there is no other way than trying. The Fear is strong in me. Perhaps I need a few more months of practice. Does it lead to conclusion 'demo trade for as long as you need to gain full confidence with your skills'? Anyone had similar feelings?
kieran (snapdragon1970)
May 04 2017 at 12:47
1946 príspevkov
Start with a small live account when you do go live, with money you can afford to lose, you can manage your fear by making small trades till you gain confidence, losing is part of trading but we try to keep those small and gaining big.
"They mistook leverage with genius".
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