Absolutely dont agree. Its not the same. Fast food business depends on different factors (especially, clients), forex trading depends only on your trading skills, your ability to analize and predict price changes. And it`s better to gain such skills, trading fake money, so you can try and test any strategies without risks.
If it was possible to open a fake shop and test how it works just like in real life, I would definitely try it!
Demo accounts are good for practicing and testing new strategies; nevertheless, they exclude psychological aspects of trading, and they’re of huuuuuuge importance. Once you start trading on a real account, emotions start affecting the process of your decision making. I believe that micro/cent account is a great alternative in this case since you trade with real money without serious risks.
Did you start off trading live yourself? Or did you demo or paper trade for a period first?
Your example doesn’t fit all business types, there are many where you cant just start out from day 1, where you need a period of learning, training, gaining experience, before you can go it alone
So, how do you explain very successful businessmen failing when they try new ventures - I find it hard to believe Richard Branson and the like wouldnt fully understand any business they were considering entering prior to entering, yet they still failed.
i went live from day one
I’m sure you’ve said before that you paper traded for a year or more before you went live, maybe Im mistaken
This may be true when you are a salesman, selling a tangible product to real people - with the only variable being the product knowledge.
However, it really has no resemblance to FX trading as it FX trading fails to illustrate the characteristics recognized with businesses selling tangible products; other than knowing how to work on your P&L.
For mi until now I don’t see the amount I trade. I hide the amount. I don’t want the amount to district mi… I just focus on getting pips. Only look at the amount after cost the trade
just because your successful in one business dosnt guarantee your successful in another.
that would be like saying usain bolt would be successful in long distance running or throwing, just
because he is good at sprints. while it would help it dosnt guarantee.
live from day one in 2002 when it was first opened up to the personal retail market. in my neck of the world
the forex market is first and foremost “selling and purchasing a product, cash” thats what commissions and spreads are. you are buying a product “cash” and selling “cash” as well as paying for access into a market. in simple terms.
I ask you this. in your mind where does a bussiness start?
You’re original statement that ‘business is business, only the product is different’ doesn’t stack up, and the above statement seems to contradict it. If ‘only the product is different’, then why isn’t success guaranteed? If success isn’t guaranteed, then ‘only the product is different’ is wrong, you can’t have it both ways.
live from day one in 2002
I knew I’d read this somewhere, and this is dated 2008 not 2002
Actually, if the broker is honest and doesn’t deceive the trader, then the demo account and the real one shouldn’t differ in any way in how they work. It’s purely a psychological issue when switching from one to the next.
Yes as rightly said above, demo accounts are crucial for gaining experience and also as a testing tool, so amateurs must try their hand first on demo effectively and then go to live. Forex is not a get rich quick business, so desire to make early gains usually lead to failures.