I am a newbie at trading and I wish to ask you for your advice.
I have been consistently profitable at trading the news in a demo account. I have developes my own strategy and sought for knowledge based on this. I still intend to trade in demo account for a few months, though, before entering real world trade.
However, I have been wondering if in real world things aren’t different because of slippage. I only place pending orders, no direct market orders, but I am a little concerned about this. I understand that during important news release spreads may widen and liquidity may suffer, so I want to know if I will be able to repeat my performance at real world trading or it will be an entirely different thing.
I know that some brokers “guarantee” a maximum stop loss (20 pips for example), which can be helpful in really volatile news. The only way to really know whether your broker will differ from demo versus real money would be to try it (unfortunately). Definitely trial it with a very small position size though.
Agree with jalapenoninja. No way to tell exactly what will happen unless you trade live. How long have you been news trading anyway? Have you tried trading the really big movers like NFP and other central bank decisions? I remember being affected by “widening spreads” even when I was trading on demo…
Thank you so much!
I have been trading news in demo account for some weeks, and I intend to do so for a few more months before going real. And yes, I am trading mainly the big news like NFP, growth, CPI, etc. But I am thinking now in going live with a very small account, for testing, like a “real-world demo account”. Do you think that is ok? I mean, are results achieved with small accounts reliable for bigger account planning? Or the “widened spreads” and that sort of thing will worse if I put more money?
