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.
I don’t know if there is a technical difference between demo and real account but yes the physical difference is there. Our human emotions are different while we trade in a demo and in real account.
When I was a newbie, I also thought a lot about this question, but then I understood that it’s best to not spend too much time on a demo account, because it won’t bring you real money…
Demo is the initial stage for tradingand we cannot move to live account without proper knowledge and practice in demo account. We had to spent maximum time in demo account until we are not satisfied with the positive results so live account we can trade with less risk.
Not just beginners. Demo trading or paper trading also plays a crucial role for experienced professionals when testing out new theories or ideas.
Perhaps one of the few careers where you can test an approach with zero risk and reliable results. Personally I am a huge advocate of exploiting demo accounts. At the end of the day if you can control yourself then the difference between demo and live is almost symmetrical.
I disagree about two things - that a demo account is enough for a trader to learn how to trade, as some things can only be learned on a live account , and that there is no difference between demo and live accounts, as requoting and slippage don’t occur on demo accounts but they do occur on live ones.
This is very true, and something that needs to be given a little thought.
But having said that, if a few pips slippage is the difference between you having an edge and not having an edge; did you really have a sustainable edge after all