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?
Justin990 posted: Not everyone is a genius when entering into forex. The demo account was made not just for beginner and newbies but also for experienced traders to try out their new strategies without taking any risk.
Some gain knowledge about live forex just be theory, but most first time users would understand only when trading with a similar live account, and no one would want to risk their money without having practice which is why a demo account is useful.
Yea, I understand. That's why I said the post was for certain types of people, and funny how you said nothing about, the biggest part...'a mentor'. I share my know only a few times to the public every so often to the public, because I know there are others like me. But yea go ahead demo's are great for some people.
Appealing to the masses is not my intention, this post is for people who find that they are not normal, they see the whole world different, they are super curious, and question everything around the world. Instead of taking the shorthand version of the equation, they want to know the whole thing, each step.
A demo won't make you happy, live Euros and Dollars and Yen, will make you happy. I encourage you, go to the airport get the real live money, get some Pounds, then come back home and place a live trade.
If you lose a total account, so what? How many of the richest people lost money, in their business before they hit it big? Did you lose your brain? No, so you still have the asset, don't lose your account be smart, but 'Look' at Elon musk, he broke the window of his cyber truck on live T.V. But a trader will tell you don't go live because you might, lose $500 and blow your account, his rocket totally exploded also. We're talking about money, not rode conditions and self driving cars. Do you see how scary, and egotistical people are? It's about taking action, demo's are for understanding a platforms function. If you want to practice a tactic or back test, use a sim.
For you my friend a demo is a waste of time. Do you see how on the internet there is so much conflicting information? When people talk about demo's it's like their not fully invested.
No matter what, demo accounts will always remain a uselful tool for both newbies and experienced traders. A newbie can’t just risk his money without understanding how platforms work. For experienced trader, it helps for testing purposes
robindude posted: Demo is a mandatory if you are newbie into trading. How are you going to start trading without taking or learning the concept that comes in with demo trading?
Depends on the trader, I didn't say 'everybody', just a certain few. Also like math and science, in physics 'for every action, the is an opposite and equally reaction'. So where would a person learn to use emotions of live trading, especially during a crash?
I'm not saying your wrong, I'm expressing an idea to certain people that feel a certain way about life, a demo is not right for them. Cheers
AliaDare posted: Skills can be developed using a demo account. A profitable strategy can be created using a demo account. So a demo account is very important for every trader.
Have you ever considered, pit traders in the in the 60's 70's and 80's didn't charts at all? There was not such thing as a demo...What about trading before computers were even out? Traders were still making millions, they only relied on supply and demand, and bid and ask prices. The first stock market was in 1600's before America even existed. I'm just trying to open you guys mind to a skill. But I see most people want to rely on what you are used to. I'm pretty much done with these type of enlightenment, fine everyone sign up for a demo, get 1:500 leverage, and do what people say here.
W.D Gann, Nathan Rothchild, Warren Buffet, Me. Did not start on a demo. All live money, no charts, only bid and ask prices. I'm forgetting about the general public, most traders I see want a different type of life, I honor that. I not going to post anymore enlightened post anymore, no supreme math, no secret geometry, nothing. in closing the market rewards traders in the know. I wish you all well. I will not post here anymore you guys don't value the gems.
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.
คำเตือนความเสี่ยงสูง: การแลกเปลี่ยนเงินตราต่างประเทศมีความเสี่ยงสูง ซึ่งอาจไม่เหมาะสำหรับนักลงทุนทุกราย
เลเวอเรจสร้างการเผชิญกับความเสี่ยงและการขาดทุนเพิ่มเติม ก่อนที่คุณจะตัดสินใจเทรดการแลกเปลี่ยนเงินตราต่างประเทศ ให้พิจารณาวัตถุประสงค์การลงทุน ระดับประสบการณ์ และการยอมรับความเสี่ยงอย่างรอบคอบ
คุณอาจสูญเสียเงินลงทุนเริ่มต้นบางส่วนหรือทั้งหมด อย่าลงทุนเงินที่คุณไม่สามารถสูญเสียได้ 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.
มีการให้ข้อมูลและข้อมูลใด ๆ 'ตามสภาพ' เพื่อวัตถุประสงค์ในการให้ข้อมูลเท่านั้น และไม่ได้มีวัตถุประสงค์เพื่อการเทรดหรือคำแนะนำ