I don’t think so. It’s better for you to trade in demo account for training account so you will know how to implement your strategy which you’ve learned from reading some sources than you tried to collect information how to trade well without trying to implement it. At least, you still tried to trade although it doesn’t use real money. But every person has his own view about it, some people are too confident with entering into real account directly.
In my view, almost all newbies will make mistake in their first trading so you will reduce unnecessary losses when you have done trading with demo account than you trade with real account directly. But it’s only my view from experiences.
There is emotion matter in real account, you’re right about it, but trading in live account is not always big emotion if you’re ready to trade with real money. It is right that demo account is good starting point to get more experience about how to trade well in many different condition of market and preparation in good money management to trade well. But it’s training in your discipline when you’re trading with real account so it’s not surprising me when there are many traders who can’t trade well in real account while they could gain good result in demo account.
So what you guys are saying is if i practice in demo first then there’s a chance I get over confident and risk more money than if i go to real account immediately and just make small trades?
Is the difference really just in attitude?
It’s depending on your view after you did practice in demo account because it’s possible that you knew the risk in trading after you did a lot of practices and then you can be wiser to trade in any condition of market so you won’t risk more than you could afford to take. Trading in demo account as practice is good but don’t trade with demo account only for long time, you need to learn about psychology control with trading in real account too. So, demo account is only starting point for you to prepare your trading plan.
That means, you didn’t work with psychological analysis! Yes, only technical and fundamental analysis isn’t enough here! You have to the capacity to check your emotions and greed, follow proper risk and money management rules! When you have these skills, only then you’ll get the same result otherwise not!
For me the thing was to start slow. Even tho I deposited 10k, I started trading with only 0,1 lots. After I had made a bit of profit I upped it to 0,2 and then to 0,4 and so on. It helped psychologically a lot that I wasn’t riskin any of my initial deposit, but just the “winnings”.
You trade with a lot of amount In demo 10 K is a normal amount given to traders for practice but real accounts should be invested low amount as a starter, you can trade with mini lots not use standard lot . I t is a safest way of trading that can trained you in real trading.
I hope you have come to a conclusion by now and this reply is not just for you but also to those who will be reading your commnets. Never be so sure that the same method you used in demo will work in real. But also should keep in mind that you will always need a great strategy to overcome what you will loose or control yourself when your in profit. Because always money management is very important
You trade with a lot of amount In demo 10 K is a normal amount given to traders for practice but real accounts should be invested low amount as a starter, you can trade with mini lots not use standard lot . I t is a safest way of trading that can trained you in real trading.
True, in retrospect I wouldn’t start with as much. But as said, even tho I made a big deposit, that gave me some benefits, I risked only fraction of it at start. All an all, it worked for me, and Im currently pondering about doing forex fulltime.
Simply put, your psychological state when trading with a demo account is completely different from your psychological state when you trade with a live account. Or at least that’s the situation with most traders. That changes the decision making process which in turn leads to losses. Add whatever slippage and requotes and slower order execution that happen on a live account and don’t on a demo account and things get worse.
It’s a totally psychological issue , as a new Fx trader I was successfully in demo with my strategy Bollinger bands even though there was no real money managing plan. But with same strategy I didn’t get the same result in live account. actually we don’t trade seriously in demo account as like Live. Problem is here.
Have same problems with my Hotforex demo, the problem was transition from trading with large capital provided in demo platform and adjust risk with limited capital on live. Just keep R/R ratio low for a first time because many traders lose because of psychological mistakes and incorrect risk calculation. Markets are often keep being irrational longer than your deposit can suffer
Develop a full written trade plan. Execute it on demo. Execute it long enough that it becomes habit. Make sure it contains max risk per trade, trade entry, trade management, your risk to reward ratio goals, and anything else you can think. Go live. Try to start with as little risk as possible. Keep executing your trade plan exactly. Realize that results are something you will see over time. Journal and document your trading. Seeking a good risk to reward ratio in trading is probably the most important thing and the reason why so many people lose. It seems like on demo, you can do many crazy things. You don’t have any pressure from real life. Let’s say you’ve drawn down your demo account by 70 percent. You start to trade with really large risk to bring it back. You make trades that sit in margin call, and then, come back. You bring back your account by nefarious means. It is like a video game. You absolutely would never do that real, unless you are insane. Anyway, have a good one…
I don’t think it’s a psychological issue that someone has explained. It’s a matter of importance. By and large traders don’t believe the importance of demo account and trade at random. They like to use this platform as a casino. And when they kick off a live account due to greed and emotions they fall a great loss by over trading, ultimately become loser. I don’t think there is any different between live and demo.
LOL. Percentage can be bigger who doesn’t like to trade in demo with greatly. But obviously so many beginners are available in Fx who take demo seriously and acquire real trading experience by passing a long time minimum 6 month.
