I better suggest that the new traders should try on demo just because it is free to practice with free virtual money. By doing so they will spend time to learn how to earn money without wasting a single penny.
How Forex Trading Can Make you Rich?
- Thread starter Peter brandley
- Start date
I better suggest that the new traders should try on demo just because it is free to practice with free virtual money. By doing so they will spend time to learn how to earn money without wasting a single penny.
Yeah, Demo is the best way to obtain knowledge about the Forex Trading as it doesn't includes the risk of losing money.
Thank you for endorsing my statement and i am sure that trading demo account can be the biggest asset for any successful trader.
First off, I am new to this forum. Second, I disagree with that statement. I think demo trading gives an unrealistic impression of the real trading. The psychology of using demo vs risking real money in a live account is entirely different. That's why there are many successful demo traders that then take their strategy live and blow up their accounts. Personally, I think it is better to start live with a smaller amount of money so that you can feel the real emotions of the market and experience real loss early.
Piece of advice, stay away from the forex and crypto threads around here, it will make you want to pull your hair out.
Emotional pressure with different capital is also different. Its about allowing yourself to lose not more than you can afford. To get rid of emotions completely.
I see this is a good piece of advice however i think such statement given by this guy can only be typed on in forums threads but none of us would like to loose any amount for testing purposes when we already have demo trading accounts to test the broker processes.
This is a really common theme/reply which is painted all over the web in trading forums, and to a certain degree I suppose it is partially correct.
But, just think about this for a moment. A demo account and a live account have the same currency feeds and therefore the same underlying data. The fact that demo accounts vary from live accounts when using the same trading approach is actually down to the emotional aspects of the person trading the system. A personal problem that they themselves need to fix, right? It's not down to the platform - the first step is admitting this to yourself.
Others may argue that this is missing the point, Demo accounts do not take into account slippage and perhaps re-quotes. All be this true, it actually leads to another question. If your trading approach is severely suffered to the point where it transitions from being profitable to loss generating then did you really have a sound approach in the first place? If a pip of slippage or a pip of re-quote is the difference between being net profitable to net loss generating then it's fair to say that you, as the trader, really are operating on margins which are far to tight.
It's no surprise that markets fluctuate, not to mention the FX markets (where I trade myself) - but when you combine this with the leverage on offer we as traders need to work a margin of error into our results when using a demo/back-testing account. This is both a logical and a rational thought process.
At the end of the day, most problems between demo and live accounts come from the trader being emotionally unstable - not from the account itself.
we are learning all life
