Demo or dive right in and get used to the emotions

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1

Hi. Im kinda new to forex. Tried a few years ago, and threw 500 bucks in the garbage. Now im back at it again and im wondering; should i do a demo account first for a few months maybe a year?

Thanks.

2

Demo until you’re consistently profitable. If you’re not running a profitable strategy, putting real money into it won’t change the result.

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3

Thanks. Do you have any advice on what demo i should use?

4

Definitely demo first.

But I think that once you have played around a bit, start going live but only trade the smallest amount available.

This way, you’re trading live, but not losing big money.

Focus on % profit.

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5

Any advice on witch demo or broker to use?

Thanks for the help

6

Try a demo from a broker you might actually open a real account with. But as a demo account is free, open more than one and find out which broker offers better charts or better customer service etc. I would go for a broker with a good reputation on the internet who is registered in a well regulated jurisdiction in the UK, Europe, the US or Australia.

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7

Any suggestions for a broker? Im from the netherlands. Thanks again for the help!

8

Also consider an online search for brokers in your country, then look for reviews.

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9

Hi SanSalito, I would hold of trading live until you have a workable system or algo. I’m not ashamed to admit that I spent 3 years trading on a demo before going live.

  1. Develop an algo or buy an algo
  2. Backtest
  3. Forward test
  4. Live trade

I’m not sure if we are allowed to recommend but oanda would be a good choice due to fact they allow no minimum trade size which is good for small accounts to use money management.

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10

Thanks for the advice! Buying a algo? I havent heard that before.

11

I suppose whichever country one belongs to has nothing to do with selecting a forex broker. All you need to get started with is by opening an account with a registered and credible broker after a thorough research online on aspects like, what would be the minimum account balance required, and how many currency pairs do they offer for trading.

12

It is an optional, so you do not have to go with that. You can always start prepping in demo account and see how you can formulate and create your strategy for making a consistency in profit.

13

You can practice on demo for 6 months if you feel like and then start with a small amount. Along with that, you can refer some trading books and youtube videos.

14

Can somebody please suggest what would be the best or the most tradable currency pair? Also, what strategies do you follow when trading?

15

In case you’re new to trading, you should be sticking with the basic pair that EUR/USD. When you’ll be trading this currency pair, you’ll be exchanging the Euros for dollars and then sell off your dollars when their price will rise in the market as compared to the amount you invested in them. I usually use technical analysis on the short-term price movements while trading via xtb, fxview and alpari. I would also suggest using fundamental analysis for comparing the inflation rates, interest rates and most importantly GDP data between countries to consider the currencies to buy and sell.

16

Definitely demo. I’m not a risk taker and there’s no doubt that you can’t experience the real emotions in demo as compared to live trading, but then practicing and well-structured strategy can for sure give you the confidence of trading the right way when you eventually go live.