There is no rule that you have to do demo trading before trading live. But it is recommended because how will you trade if you have no skills and don’t understand the trading platform? Demo trading helps with these two, and it is a good enough reason to get started with it before taking a risk.
I believe so. I don’t think a trader should directly move to live trading before practising on a demo account. The demo account may not tell you much about the live market behaviour but it will prepare you for trading in the live market. As soon as you become familiar with market functions, move to live trading.
No one is forcing you to demo trade if you don’t want to. But it would be a risk to trade without practising on a demo account as you may not know how to proceed further with live trading. So, demo trade for a while and when you think you are ready for live trading, go ahead with it.
Yes, I agree to the statement that Forex is not for everyone, it is for those who nurture learning attitude and are patience in nature. So I always suggest traders to build these qualities before starting Forex trading journey.
If traders want to make a successful trading career then I would say a demo account is mandatory. Demo accounts help new traders in learning the complexities of the market and familiarise them with the trading platform.
Yes, I agree, while a demo account helps newbies to backtest strategies, it can raise their expectations at the same time. Trading on a live account is much more stressful and newbies can get misled. They need to rely on their knowledge and skill to pull off a successful trade. If traders start small and grow their account, it helps them understand the level of expectation they need to set.
It's hard for me to imagine how much money a trader will lose if he doesn't use a demo account. People should understand that this is a great opportunity to learn the trading platform. No matter who says what, but a trading platform is a heavy and multifunction platform. That's why a trader should be able to study all the tools and understand how timeframes work and how to look for patterns. It can seem like an exciting adventure. But it is not necessary to trade on the demo account for too long. You need to train your emotions. That's what real money is for!
Demo trading is something that certainly assists new traders in learning about the 'baby steps' involved in trading. It is good to get a feel of the real trading and market with the help of a demo account.
I think a demo account is good enough to get a boost of confidence and strategies and backtest strategies with digital money so when the trader does live trading, they are focused and know when to move. All newbies must practise on a demo to get the hang of the trading process to avoid errors when dealing in market shifts.
To begin with, I believe that demo accounts are necessary for experimentation, as they enable us to prevent unfortunate losses and risks when dealing with real money. Also, we get to learn our hands on trading and various tools involved.
They are, of course. They allow you to practise trading without risking real money by using virtual money. Demo trading can be very useful for evaluating the performance of a trade strategy and for trader education. If you jump into the live market without practising then you’ll end up losing all your funds.
If you are new to trading then definitely it is important for you to first trade on the demo account and then shift to a real trading account. It is for the benefit of you only, to understand the trading deeply before trading real funds.
Without a doubt. Demo accounts assist you in planning and strategizing your moves. It also enables you to gain a thorough understanding of price movements and to assess your risk before going live and trading with real money.
Yes, demo trading allows new traders to practise for a long time and keep honing their skills. On a live account, however, it will cost you a lot of money. So a demo is absolutely necessary, but treat it as if it were a real live account.
A demo account is essential because it will tell you the reality of your trading. Of course, there might be negative emotions like overconfidence that can come as a result of trading on a demo account, but controlling them is the key to successful forex trading. It is perfectly okay to lose a thousand times before making progress. Those thousand losses will give you a world of learning, of which you can write volumes.
I traded using FP Markets' demo account for two months, I was learning from their education center, which offers in-depth daily and technical analysis, till I grew the confidence to start live trading.