it all depends on what you have already achieved in trading and what you managed to understand, which account should be used depends on this level of knowledge
Demo or Real Account for Practice (Advice)
The demo account is the best to use whenever you are practising because there is no real risk or capital involved, and it is the best place to develop various strategies or skills.
You are right, when I try to trade live from demo trading I have a 95% chance of losing my first deposit.
Perhaps you could up the stakes for yourself while practicing on the demo? Try to reward yourself with something like dinner at your favorite restaurant if you meet a certain goal and give yourself some type of negative consequence for losing money. You could do a certain number of pushups, for example. If you stick to it, you’ll know that there is some consequence and it might make you feel more motivated. Otherwise, just open a live account and switch back to demo if you don’t do well, but be prepared to possibly lose some money in the beginning.
The demo account is the best for practice because of its risk-free environment, so beginner traders need not worry about capital or trading mistakes.
It is also important to practice with a real account to gain experience before investing higher capital; it helps to learn about the live forex trading markets and risks involved in it.
Yes. I’m 2 months new and demod for a few days to learn the mechanisms, then started a $100 live account and have been doing 5, 10 and 25 cents per trade. You quickly learn that the psychology of a live account is very different than demo. I’ve had 3 green weeks, 5 red. But my red weeks were worse because I had to learn not to chase losers. I didn’t do that in a demo. Also, I still make execution errors.
for personal practice, a demo account has always been important, so if you want to safely experience something, then use only it
for me, i only used demo to learn how to push the buttons or if i was testing out my api bot code to see if it was opening and closing trades properly, etc…
i would never waste my time “practicing” on a demo account.
it is so easy to open a live account and slap a hundred bucks in it and then just play 0.01 lots of eurusd or whatever.
you are gonna be playing for a whopping TEN CENTS($0.10) per pip(0.0001) omg dont hurt yourself.
you see, then you can just forget about those silly conversations about whether a demo account works just like a real account… you will know that those conversations are for people that are too scared to even wade around in the shallow end of the pool.
dont waste your time.
Hi, if you have absolutely no trading experience or simply want to test your trading strategy with no-risk then demo is a good option (there are more benefits that you can read in detail here).
However, for beginner trader i still would suggest real account for practice cause trading with real money will force you to make careful decisions and manage your fund better, even if you start with a small amount like $100 still good.
Good luck with your trading journey!!!
Every new trader should start with a demo account initially because it can help traders to develop some trading strategies. You can trade live once you are confident, but with small risks.
Am not against your view,
But to me most of these forex brokers offers a demo worth 1000$ and above.
During my research, I didn’t get one offering demo of say 100$ which is the common and affordable starting amount.
In my view starting with the amount, you can afford to lose say 10$ will help u a great deal.
Dealing with emotions etc
You need a demo account to make your trade execution better. If you just learned a new strategy but you don’t have any real market experience with it yet, it is advisable that you backtest the strategy on a demo account first. This will help you better understand the strategy. Once you fully understand the strategy the chances of losing the money will decrease by a lot.
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It depends on your preference; there is no actual money in the demo, so we can focus for an extended period of time there, which is true. So, in general, we deal at random here.
A demo account should be your first step before you go into the live trading environment. Practice there for as long as you want to. And once you have gained the confidence that you can go live, use a micro account to start with live trading.
Practice only on demo. Practising directly on the live market can cost a trader a lot. If anybody finds that they don’t feel serious trading on a demo account, consider it like a game. Set certain goals for daily profit. If you fail to reach those goals, keep on improving your plan. This is what a demo account is meant for. You need to trade like you are building a real profile.
Go with a demo account if you have no trading skills and zero trading knowledge. If that is not the case, then you can start with a live micro account and trade with small risks.
If you are a beginner venturing into forex for the first time then using the demo account is the best way to gain knowledge about the forex market and its platforms.
After gaining enough demo experience it is better to switch with live for better understanding about the forex market and the risks involved in it.
I would suggest using a demo account as much as you can. If you have the resources required for practising on live trading where you can lose money, you can go ahead but you will need to be very careful with that. You may end up losing money because people tend to make more mistakes while practising.
Yeah right!
I am also a beginner and practicing on demo account. I am still in my learning phase, so can’t afford to lose money via live trading. Will first learn and then earn.
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Yeah, that’s how it should be. 