Yes demo trading is enough if done with proper attention and discipline. But you need to control your emotions and need to be serious while trading on demo. If you will trade on demo account with the psychology that this is your real account than surely demo trading is enough before opening live account. Psychology plays the crucial role in demo trading.
emily_smith posted: Yes demo trading is enough if done with proper attention and discipline. But you need to control your emotions and need to be serious while trading on demo. If you will trade on demo account with the psychology that this is your real account than surely demo trading is enough before opening live account. Psychology plays the crucial role in demo trading.
Dandelion posted: I think demo trading is enough ONLY if you then open a real account using micro lots. Start small on the real account and work your way up. If you start trading with 1 Lot you will get freaked out
I agree. Even when you switch from demo to live trading you should start with small investment and eventually increase it depending on how you are performing. If you initially invest a huge amount there's a good chance of losing it since you'll be fresh out of the demo trading experience. As we all know live trading is totally different.
Demo trading is enough only in algorithmic trading where you can test any Expert Advisor for some period of time. In manual trading the emotions mess everything up. Even you achieve 100% in a month on a Demo with unreasonable money management, the chances to lose 100% are there on live account. First you will not take huge risks as on the Demo, and second the greed to take the profits quickly will make you lose. Sometime ago I took one course from EA Forex Academy, where the mentor teaches 3 different methods to test on a Demo account before trading on live. I looked for the course, and here it is: https://eaforexacademy.com/courses/forex-strategy-course-portfolio-trading/
This is something that you should be able to answer for yourself based on how you judge your performance in demo account. If you think you have been earning consistently well and that you have learned everything you need to in order to start live trading then you can switch to live trading. However start by trading in micro account first.
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?
Go to real account to know the real emotion.
Rightly said. It is very important to factor in the effect of real emotions on our trading styles and results. Demo trading is a beneficial tool for testing strategies for both newbies and veterans but only if you trade like you are trading live. Not easy, but certainly very much essential. Otherwise it won't be of much use.
Beginners should trade demo account minimum for 3 months for acquiring real trading experience which is very supportive to continue a live trading in a proper way. but they don’t believe the importance of this trading place at all. so it would be better if they start minim live account instead of demo trading.
It will depend on how long and how efficiently you traded on demo account. If you took it seriously as if it were live trading, observing and learning the minutest of details then it will be enough. My advice to you would be to not rush to live account. Take your time.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.