Success with demo account - what about a Live?

[renner1984]

Forgive me if I throw too much out here...

I've been practicing on a demo account for about a month (maybe that's still too little time to tell) and managed to reach my goals.

I've set myself a goal to make a 4% of my total investment each day (or 10-12 pips at 100:1 margin), five days a week. Considering that, I've increased 20% each week, having doubled my money, and ultimately my goal is to double my money each month for the next 12 months with a live account.

While things are peachy with the demo account, surely it is not this easy with a live account? How could I practice doing this factoring in potential slippage or delays in fills? My end goal is around $1.6 million; when I get to the upper amounts, surely there are even more risks?

What major differences are there in the demo vs live accounts? (I use MetaTrader 4 for a demo) How could I improve my preparation in the demo to carry my plans out in the live account?

Should I continue like this, what is the best broker to use given my goals and my use of MetaTrader?

Thank you for your responses.

[soul786]

All brokers claim that the demo vs live relationship in terms of prices/spreads is VERY close if not the same. I have yet to go Live so I can't comment on whether this is true.

In my own opinion however I beleive the differences are psychological. Knowing that YOUR REAL MONEY is now on the line with every trade could make you anxious (makes me anxious thinking about it). With a demo, no matter what it is desensitized. Losing that $20 in fake money is reconciled by our mind saying 'meh well I could have done this, we'll see next time". On a Live account I can see myself losing sight of the loss being a learning experience, thus clouding my other trades and possibly moving away from my system.

Just my 2cents.

[Davidee]

Originally Posted by soul786

.In my own opinion however I beleive the differences are psychological. Knowing that YOUR REAL MONEY is now on the line with every trade could make you anxious (makes me anxious thinking about it). With a demo, no matter what it is desensitized. Losing that $20 in fake money is reconciled by our mind saying 'meh well I could have done this, we'll see next time". On a Live account I can see myself losing sight of the loss being a learning experience, thus clouding my other trades and possibly moving away from my system.

Just my 2cents.

I think you are right. I've asked the question why can you demo trade but not live a lot and got some very insightful answers but still can't completely 'crack it'.

First time I went live I lost £300 in around half an hour.

Some spread betting firms allow you to bet with really low amounts of money like 10 pence per pip and when I started using that amount of money I didn't lose so badly but was never going to make very much either.

Anyway, in the last year or so I came to the conclusion that I would never be able to over come this psychological barrier and now limit myself to system trading, trading a purely mechanical system.

A good trade for me is following the trading rules to the letter - a bad trade for me is not following the trading rules to the letter. I don't pay attention to the outcome of any one trade, the only thing I worry about is did I follow the rules. This is the only way I'm able to trade. Don't know if it's good or bad but I have come to accept it.

[cas]

Anyway, in the last year or so I came to the conclusion that I would never be able to over come this psychological barrier and now limit myself to system trading, trading a purely mechanical system.

A good trade for me is following the trading rules to the letter - a bad trade for me is not following the trading rules to the letter. I don't pay attention to the outcome of any one trade, the only thing I worry about is did I follow the rules. This is the only way I'm able to trade. Don't know if it's good or bad but I have come to accept it.

That's not the point...good or bad.

Sounds like you have accepted a certain behaviour of yours, dealt with it and adjusted to it.

You didn't go as far as behaviour modification...but then...who knows...what the future might have in store for ya.

[Sweet Pip]

Originally Posted by renner1984

Forgive me if I throw too much out here...

I've been practicing on a demo account for about a month (maybe that's still too little time to tell) and managed to reach my goals.

I've set myself a goal to make a 4% of my total investment each day (or 10-12 pips at 100:1 margin), five days a week. Considering that, I've increased 20% each week, having doubled my money, and ultimately my goal is to double my money each month for the next 12 months with a live account.

While things are peachy with the demo account, surely it is not this easy with a live account? How could I practice doing this factoring in potential slippage or delays in fills? My end goal is around $1.6 million; when I get to the upper amounts, surely there are even more risks?

What major differences are there in the demo vs live accounts? (I use MetaTrader 4 for a demo) How could I improve my preparation in the demo to carry my plans out in the live account?

Should I continue like this, what is the best broker to use given my goals and my use of MetaTrader?

Thank you for your responses.

How much did you demo with and how much are you going start with for real?

[renner1984]

For the demo, I started with $5,000 and ended the month with around $10,000, at 100:1 margin. I will be starting a mini or micro with $1,000, would like it also to be around 100:1, no more risky than that. I know that's quite a difference in dollar amount, but on the demo, the goal is the same, to double it each month.

[Sweet Pip]

Originally Posted by renner1984

For the demo, I started with $5,000 and ended the month with around $10,000, at 100:1 margin. I will be starting a mini or micro with $1,000, would like it also to be around 100:1, no more risky than that. I know that's quite a difference in dollar amount, but on the demo, the goal is the same, to double it each month.

That's not bad then...some start out with a 50K demo or more and do well so the impression is that it's easy but when they start with 1K, it fails. Perhaps demo it again starting with $1k and double that a few times just to make sure.

[renner1984]

Thanks, that is encouraging. Word of note, the demo starts a minimum of $5,000 (otherwise I would only do $1,000). As to the psychological, I'm doing my best to treat the demo as real money.

My concern is, because my goal is over $1 million, when I get to the upper amounts (as in doubling), what problems will be presented? Judging by forums and other research, I've read of slippage and potential failure to order a fill.

[Sweet Pip]

Originally Posted by renner1984

Thanks, that is encouraging. Word of note, the demo starts a minimum of $5,000 (otherwise I would only do $1,000). As to the psychological, I'm doing my best to treat the demo as real money.

My concern is, because my goal is over $1 million, when I get to the upper amounts (as in doubling), what problems will be presented? Judging by forums and other research, I've read of slippage and potential failure to order a fill.

I'd say worry about that (big lots) when you get there...lol. Probably the biggest problem will continue to be psychological in nature...one(s) you didn't knew existed or feel will be a problem. Sorry that's not so encouraging, but chances are high. If you can get that under control, you could do fine. Remember, baby steps

[xtraction]

Originally Posted by renner1984

Forgive me if I throw too much out here...

I've been practicing on a demo account for about a month (maybe that's still too little time to tell) and managed to reach my goals.

I've set myself a goal to make a 4% of my total investment each day (or 10-12 pips at 100:1 margin), five days a week. Considering that, I've increased 20% each week, having doubled my money, and ultimately my goal is to double my money each month for the next 12 months with a live account.

While things are peachy with the demo account, surely it is not this easy with a live account? How could I practice doing this factoring in potential slippage or delays in fills? My end goal is around $1.6 million; when I get to the upper amounts, surely there are even more risks?

What major differences are there in the demo vs live accounts? (I use MetaTrader 4 for a demo) How could I improve my preparation in the demo to carry my plans out in the live account?

Should I continue like this, what is the best broker to use given my goals and my use of MetaTrader?

Thank you for your responses.

What is your position size? What is your stop loss?