I don’t really put too much effort when using my demo. I just look up a chart real quick and don’t think too much and enter a trade.
The most ironic thing is it makes more money that my real account.
Somehow it hits my tp faster and the worst thing is when i check on it it goes into the green faster than my real account.
Position sizing has nothing to do with it i just use 4 mini lots.
Trading on a demo account is a great place to start your trading endeavours or simply to test a new or modified strategy. However, there is no substitute for trading in real time with real money.
Sometimes there are huge discrepancies in the results gained from the people I mentor who trade the same strategy but on a demo versus a live account…and the general consensus is that traders (especially newbies) tend to be a lot more fearless on a demo account because they know that it the money is not real – so they have nothing to lose. So, this can enable them to fearlessly execute their strategy in a mechanical fashion rather than second guess legitimate set-ups which can be the case with people who trade real money for the first time. My advice is to start with real money – a great exercise for training the mind - BUT NEVER EVER trade with more than you can afford to lose. Keep the risk per trade low at all times.
Dont start with real money yet, the fact that you cant be bothered to put effort into your demo shows you aren’t ready.
So far you have just been lucky.
Go back and treat the demo seriously, put the effort in and feel pissed at every pip you lose. Imagine what you would have felt if the money you lost was real.
Do you keep a journal? Go back and look at the reasoning behind all your trades to see what you did right and wrong
It is all about trading psychology. You are not the first one who is successful on demo and losing on a life trading. May be you should forget about demo account and focus on a life account, because what ever you’ll learn on demo as you see is not working on life trading.
I think that it would be better if you trade in real account using huge leverage…
It will save and make you more talent in trade
Didn’t you advise the opposite in another thread?
Make your mind up!
I would say to trade a small account that you could comfortably lose with out it effecting you.
Imagine demo as sitting on your couch playing Call of Duty or Battlefield or something.
Now Imagine trading a big account in which losses would have a decent impact as being in Afghanistan.
I see a small real account as going paint-balling. If you fail at paint balling, it has repercussions but nothing too serious & the more you work on your technique there, the better you would perform in a “live fire” environment.
Trading demo has no real psychological relevance as at the end of the day, it’s not real. Yeah you can work on your strategy etc but until real money is on the line, your theory discipline means diddly squat. With a small real account, you need to trade properly & hone your skills as if you’re not bringing your A-game when you move on to trading a bigger account then you’ll soon suffer the repercussions & they won’t be pretty.
When real money is on the line, psychology is a MASSIVE factor & the sooner you try to address this factor, the better.
These are just my opinions, there’s always a demo/live debate on the go & each to their own. Different courses for different horses - everyone is different. I just see it was the cost of learning: you can’t cross the bridge without paying the toll. Just start with an insignificant amount (eg. $100, $500, $1000), an amount that as I said, you could afford to lose. Obviously we don’t want to lose it but I’m talking worse case scenario here. An say, maybe an amount that when you trade 2%, you’re a tad cautious of losing it & then you’ll soon put the extra required work in to your psychology.
Succeeding in demo does not guarantee success in live account .Most newbie encounter failure in live trading due to the psychology of fear as a result of the their real being involved . I think to conquer fear you should open a live account with money you can afford to lose. To be successful in forex a lot a patient and determination is required.