The only use of demo accounts is to get the basic idea of the functioning of the market. If you spend unnecessarily extra time on a demo account, it will start filling you with false expectations that you may never be able to fulfil.
If you enter 2 simultaneous trades on a DEMO and LIVE account see how one will hit TP and the other will be a loser !! thats the difference between DEMO and LIVE! with a lot of brokers especially ones who like scalpers!.
Different spreads , price movements and Slippage make a huge difference so the sooner you have your strategy tested get off DEMO and trade a small LIVE account ! that's the only way and you soon see the 'real' manipulation of a Live broker !!.
Demo almost suckers you in as 'too easy to make profit!' so you go live trade the same and BOOM ! Blown account ! this happens time and time !
Demo is only good for trying a strategy out , LIVE is a different ballgame and not just the psychological aspect.
It will depending pers[ective of each traders to view about demo account. Demo trading is important to learn and get experience trading. Sometimes demo accounts are used among traders to show trading performance when they test ea and want to show if they can make a good income using a demo account. But investor I think they will look and proof of trading and type account before investing.
Demo trading can surely help you to develop your skills as a trader and it does give us confidence to trade on a live account. But the transition from a demo account to a real account will never be easy. I think actual trading experience is gained when you go live in the forex market and get exposed to the market risk.
It's true! It can only provide you with a taste of what the market could be like. To be well experienced, you need to put in the time and effort to learn the ropes and master the skills required for the job. A demo can give you a head start, but it cannot give you the surety of becoming a successful trader.
Demo trading is helpful for letting a newbie thoroughly test his strategy to find a profitable price range as to when he should enter and exit a trade. Which is why trading is a demo that can help a newbie to improve technical analysis, risk management, and fundamental analysis. However, as no real money is involved, the trader does not feel any emotional attachment to the money he is trading (which is fake money). This does not help the trader to develop his trading psychology and money management skills. This is the reason why many beginners who made good profits in demo trading, failed in the beginning of live trading.
Although a demo account cannot provide you with well-trading experience, especially when it comes to monetary values, but it does allow you to put your training into practice in an environment that is similar to real life without putting your real money at risk.
Seems there are many traders feel skeptical about demo accounts. In my experience, a demo account is useful to backtest a trading strategy, and expert advisors, this is still useful to learn to use a demo account, and we can trade real accounts while still performing a demo account.
It's a matter of actual realisation that a demo can't have the capability to make you perfect in trading. But to get the superior one, you must have to overcome the inferior steps. And the demo is like that. A demo just functions as the mirror of your self-confidence in the field of trading.
DoraWalletInvest posted: Even though demo trading is not the same and it doesn't help you exprience your true emotions and reactions to market movements, I think it shouldn't be underestimated, it is a great way to test your knowledge.
However, make sure your strategy is proven. Use demo accounts to make a judgment over your strategy.
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