I think demo contests are one of the biggest mistakes new traders can make. I know plenty have flocked to the forex market by clicking on banners and approaching it with the wrong mindset and insufficient trading capital.
Plenty of brokers cater to that and offer demo contests where traders can win free money which will be deposited into their trading accounts. This often comes with so many rules and guidelines that most will never fulfill them.
That is not even the worst part, the only way to win a contest is to ignore things like risk management and basically you go all-in all the time and hope you get it right which promotes the type of trading mentality which is destined for failure.
That’s why I think demo contests are terrible for new traders as they learn the wrong things and get their hopes up that real trading is similar to that. I think all traders should stay away from forex demo contests.
What do you guys think?