I also feel this way. Nervous gets really high xD
Demo is only valuable if you have utter seriousness in it. Else it will be just a waste of time, if you donāt have seriousness in it. Live trading will test the knowledge and experience and skills that you gain through the Demo Trading.
Demo account is highly recommended for everyone it is the base of trading which helps us to grab the basics of Forex. Once we properly learned the basics then we will be able to get fruitful result in live account.
Demo works really for everyone if we can focus on there. Otherwise itās just a time passing , because there is no real money.
So many negative reviews in forum communities about demo trading. And it is one of the major reasons why new Forex traders are discouraging from this trading place. Practically you could not earn real money from demo but of course you could earn real trading experience from here. Now itās your choice.
Beginners donāt ignore the demo account. They trade in here but at random with no analysis.
Demo would be the best way to make some good money online, but if you want to achieve success, you need to have proper amount of practice in the Demo Trading and that too with utter seriousness. Else if you are just in here to waste the time in here.
What!!!
Hands up all those who have withdrawn realised profit from a demo account.
i have never found at any guys who earn something by demo. I donāt know how can it possible? Can you please elaborate ?
I donāt know about the demo experience you have. How is this possible? Are you talking about demo contest which sometimes offer real money prizing.
I have talked about using the knowledge that is earned by the Demo Account to gain the real money in the Live Account. Sorry If i have got you any misleading ideas in here. But if you see that indirectly its the Demo trading which is helping us to gain some good money online.
I never got your point , actually the message you explained was not clear. Itās okay. Thank you for reply.
The basic of Forex is not demo account. The demo is a basic of live trading as well live experience. Forex basic knowledge indicates which are actually in Pips school.
Some discord I have with you. both are basic level of Forex trading demo and preschool. Demo is a basic level of practical trading and pips school is the basis of subjective knowledge. And this is a great combination for beginners to keep survive in here accurately by learning from these.
Yeah, Demo is the platform where the Forex Trader practice their strategies in there in the Forex Market. It would be good if you practice the strategies first in the Demo and then carry forward it into the live trading account.
Mate, Iām an I.T. Engineer ok
Letās forget about the words DEMO and LIVE for now
Let me explain this to you IN TECHNICAL NETWORKING TERMS what it actually is
When software is developed by a Company and itās purpose will be to be sold, it has to be debugged, it has to be tested and so on
you have the software component of it
and then you have HARDWARE ENVIRONMENT and with this you have potential compatibility issues and scaling issues and so on
the point iām trying to make is this
-
Your broker Obtains a financial license to that they can do this stuff legally
-
they build servers
-
they create associations with the INTERBANK NETWORK and this is where they get THE DATAFEED FROM
-
they then configure their servers to communicate with the interbank network, or ā¦ whoever their supplier is
-
thatās half of the chain formed, now they need customers (Retail Traders) to give them money.
they have to supply a PLATFORM on which Retail Traders can trade on
HERE IS WHERE IT ALL HAPPENS
the developers will initially create a TEST ENVIRONMENT or TEST SERVER
and a PRODUCTION ENVIRONMENT or PRODUCTION SERVER
the Production Environment is your LIVE TRADING ENVIRONMENT
The Test Environment is your DEMO ENVIRONMENT
Nowā¦ is there a difference ?
well. for the sake of proper test, the environments should be identical and there should be no difference
as i understand it
what they do TO ENSURE ACCURACY is they use A REPLICATION SERVICE
Meaning
The Feed that comes from the Interbank network that is fed to the Test Environment is also Replicated to the Production Environment
therefore the feed is the same
NOWā¦ CAN THIS FEED BE MANIPULATED
Of course it can
BUT YOU CAN TEST THIS
do this
Go to a broker
Open a Demo account
and ask them for a Live Account (if they are worth anything, they will create a live account for you and tell you you must deposit funds into it within 30 days, but they will create it without the need to deposit funds)
all you need to do is Open 2 instances of MT-4
1 Demo
1 Live
and compare the prices
then Cross Reference those prices with a few other locations doing the same thing
and you will quickly ascertain who is full of shit and who is not
as a rule
if the Prices on Demo Differ from the Prices on Liveā¦ LEAVE THE BROKER
at the end of the day, having a demo account means, they have created a profile for you in their Test Environment
and going to Live means you now are in their production environment
thatās why when you have a demo YOU ARE ON A CERTAIN SERVER with a certain server name
and then on live, THE SERVER NAME CHANGES
the type of account, the leverage etc, are merely parameters in the account
and you account is link to a bank account
a reputable broker will ensure that the same feed that comes to the Live Environment is going to the Test environment
NOW LETāS SAY THATāS THE CASE
IS IT STILL THE SAME
NO, ITāS NOT
BECAUSEā¦
itās not about the money
itās about Trading and how it affects the economy
seeā¦
WHEN YOU PLACE A TRADE IN A TEST ENVIRONMENT, YOU ARE NOT AFFECTING THE ECONOMY IN ANY WAY
You canāt even see what the other Demo Traders are doing
what is happening is this
- You are getting a Live Data feed
- now if you trade EUR USD and you put down 100.00 Lots, you wonāt notice a change in the market on Demo because YOU ARE NOT AFFECTING THE MARKET
YOU DIDNāT REALLY DUMP $1,000 PER PIP INTO THE MARKET
soā¦ THE MARKET WILL NOT REACT TO YOUR TRADE AS IF IT REALLY WOULD
but in reality
you are not going to do that
You are likely going to do this
TRADING EUR USD
you put down a trade for 0.01 Lots or up to 0.1 Lots
IF YOU DO THAT
EVEN THOUGH YOU ARE NOT AFFECTING THE MARKET
you can pretty much gauge what is happening as being pretty close to WHAT WILL REALLY HAPPEN because at those levels your trade is not significant
so FOR THE SAKE OF LEARNING BELOW 0.1 LOTS
YEAH (Assuming your broker is reputable and you have verified that their Demo Prices and Live prices are in sync and that other reputable broker prices are CLOSE TO THEIRS ) (it will vary a little based on their rates and what they get the price for, but close enough is good enough as long as itās consistant)
assuming all this, you can pretty take the demo environment as being 99% Accurate
at the end of the day regardless what anyone says
the bottom line is
These are Servers (So Rules of computing and Networking Apply)
there are Test Environemnts and Production Environments
The Test environment can be manipulated and usually is
but the broker is not really testing anything here , they are just proving a platform for you to PLAY ON
they do have an actual environment that they run tests on, but you do not trade on that ever, THATāS INTERNAL
the point is,they can manipulate it
but YOU CAN VERIFY IF THEY ARE MANIPULATING IT VERY EASILY
soā¦ TEST EVERYTHING
hope that helps
It supports really. Before live account if you practice own strategies in demo , this approach could help you for avoiding loss and risk when trading in live. So, donāt ignore this educational place.
Itās a nice technique to see the strategies performance before entering live trading. Thank you
Using too many strategies and high leverage in demo is a good approach but honestly speaking this experience will not work in live account. We can trade freely in demo because there is no real money but when trading in live there are lots of practical situation we have to face it with surviving emotions and greed. So, try to get experience by live trading.
Actually yes thatās correct
i forgot to mention that
A PERSON SHOULD TREAT A DEMO ACCOUNT EXACTLY LIKE A LIVE ACCOUNT
if you Lose on Demo, you should treat the loss the same way that you would treat it on live
if you donāt , youāre in for a rude shock when you jump to live and it gets real
thanks for bringing that up, VERY GOOD POINT
i forgot to mention it, because i now (7 years later) do this like breathing and i forget to mention it.