Demo Forex

[pipeguy]

In this way the broker makes trader to fund his account and start trading with real money. Of course, it would be better to have enough time to practice - each trader should decide himself when it is suitable for him to start trading with real account. At the same time, since it is quite easy to open demo account and since it creates no obligations for the trader, it is possible to open multiple demo accounts one by one to be able to get strong tradin skills before starting trading with real money.

Some of the traders also use demo accounts to test their strategies even if they already have real accounts just because it is better to check the performance of new stategy using demo accont rather than to risk with real money. At the same time, this is not the most efficient way of testing and its results sometimes are not accurate enough. If you are going to test the same strategy with different parameters on demo, you wouldn`t be able to get detailed results just because the data and the number of trades would be different for each time. The results of demo testing could be also influenced by trader`s psychology. That is why to my mind it is better to use automated backtesting with the help of scripts (for those, who have deep knowledge in coding) or with special software like Forex Tester which would be suitable even for novice traders.
At the same time, demo testing is important too, because trader has to check his own performance with the new strategy. It should be comfortable for him to trade using it otherwise he would more likely to violate its rules. So the optimal strategy development process includes both automated backtesting and manual demo testing.

That is why demo account is still an important tool for traders

Demo test is often sufficient approximation of performance on the live account, moreover you don't lose anything from conducting tests on demo (except time), so I advice to perform tests on demo first regardless of potential performance discrepancy with live account. Demo testing results is new information which is likely to be helpful.

 

[tradenet]

Trade Demo account is not like Live account.

I agree, both these accounts are different. The purpose of a demo acc is to familiarize a trader with the trading platform where he can test his strategies before going on a real account. Also, your real funds are not invested in a demo account, but when u trade on a real account, you actual money is invested and you may go through various emotions while trading.

 

[pipeguy]

I agree, both these accounts are different. The purpose of a demo acc is to familiarize a trader with the trading platform where he can test his strategies before going on a real account. Also, your real funds are not invested in a demo account, but when u trade on a real account, you actual money is invested and you may go through various emotions while trading.

And how in your opinion can we eliminate emotions from our trading?

 

[Andras]

And how in your opinion can we eliminate emotions from our trading?

The only way to do that is to stick to a trading plan or better still use a trading robot. I am currently in search of a Scalping EA to attach to my Forexchief account. At the time I used an EA on their platform it was very successful. Now I think EA scalper will work perfectly due to lower spreads and fast execution. Unfortunately I am not a coder and it is hard to find a reliable EA these days, most of them are over hyped. Either way, that is one way to kill your emotions. Let the robot do the work.

 

[padutrader]

I many times had good performance with substantial profit as the screenshot below:

But when I switched to live, the result was not expected. Demo performance doesn't reflect your trading ability. Keep it in mind.

maybe

but if you cannot be profitable in demo you will not be profitable in live .....that is certain.

though if you are profitable in demo it may not mean that you will be the same in live....making and losing money does strange things to people

 

[Esha.J]

It is many times true that people who are not successful with demo can not perform well in real money trading.

 

[Elewood1]

Anyone knows a broker that offer no-expired demo account?

OspreyFX

 

[Esha.J]

But what is the need of no-expeired demo account, I think most of us has traded 6 month and after move to real account.

 

[IAlwaysWin]

My advice is to avoid demo accounts and start live and trade mini-lots of 0.01. Or start off with a tradingview account because the live and demo pricing are the same.

 

[Elewood1]

But what is the need of no-expeired demo account, I think most of us has traded 6 month and after move to real account.

You would frequently end up in a situation where you need to approach a new trading strategy or revamp your existing one. Demo accounts come in handy for that!