That is true, but still, some things can only be learned on a live account. Demo account trading is good for learning the market, learning one’s strategy, the live account is necessary to learn how to master one’s own emotions when trading.
You are right, true knowledge is gain in the live trading only, but some of the traders even need to know that how to trade with live account, and that is where the Demo Trading comes in handy, which teaches them, about how to make trade in live account.
I certainly agree. I didn’t mean to underestimate how important demo account trading is. One should be able to learn the basics - and to test that knowledge, as well as any ideas, theories, strategies, etc. safely on a demo account. That applies to all traders, even the experienced ones.
Demo account helps us to make the right entry and exit from the market as we spend more time in demo account it enables us to gain more control over real account and we will be able to achieve our goals of earning good profit.
Yeah, but you need to understand that if you wanna become successful in your trades, you need to have lots and lots of knowledge and experience and skills, this you could obtain from the Demo Trading. It is quite a nice and most importantly an easy way to do that
For how long did you trade on a demo account before moving onto a live one, if you don’t mind me asking?
i think a person needs to practice minimum 6 months in demo account. though it is a short time and a trader can not get very clear of everything of forex. but in this 6 months a new trader can get a idea of ‘’ how to trade in this market’’. but in a long run you need to practice a lot. how much time it will take is a good question that actually depends and vary from person to person. and you know that every man is unique in this world. so i hope you will get the answer… overall forex is a good thing if you can handle it in a right way… hahahhahah.
the trading principles are same but there might be a possibility with some brokers that they might provide different spreads and speed execution on live and demo account and yes according to me there is psychological factor as well because we trade on demo account there is no real money involved and we do not worry about the commission, swap charges or even the profit and the loss. But when it comes to live account or we say the real world, then we become a bit nervous as we have the mind set of making the profit rather than losing and then there is lot to think about the spreads, commissions swap charges etc etc. there we would want to save and earn the minimum we could.
Demo is the best way to gain the knowledge of Forex Trading while the live account is used the knowledge which you earn through the Forex Trading. But you need to have a good amount of Demo Practice to become successful.
This is where the difference lies actually. If it is almost impossible to duplicate your success on a demo account using a real account, then there is a difference that has to do with not only the form of money involved, but some other factors. Psychological effect and the broker’s disposition toward real traders comes into play here.
Sometime we often hear there are certain trader share experience when using demo account they can easily getting success but when trading on real account they get fail, because so many factor like as emotion on real account will high tension, market that very dynamic, and different server also can cause as reason loss on real account
I have not found any difference with demo and real account, the only difference is in your feelings and emotions. The trading demo is easy because we do not have fear of loss but in the real world our emotions changed.
That means you have a decent broker. With some broker there is a significant difference in terms of slippage and requotes, it can be very frustrating.
Demo would be the best way to obtain knowledge in the Forex Trading, but many traders consider it just as a fun time and don’t take it seriously, which makes them vulnerable in the Real Trading. Thus if you wanna become successful, you need to have utter seriousness, if you wanna achieve success.
Precisely. It’s about the mental angle. At the point when genuine cash is included, feelings gets included excessively! Feeling are somewhat of a foe to rationale and reason particularly in a field where you can lose large number of dollars in seconds. Losing counterfeit cash isn’t the same as losing genuine cash! Will probably change your arrangement/framework or your stop misfortune in case you’re utilizing genuine cash. The dead will be more present with genuine cash and that will influence you to do things that are not as per plan. Unlike in demo you truly couldn’t care less that quite a bit losing something that doesn’t generally exists!
Demo acc is better if you’re beginner, use it to understand how to read graphs, open lots , etc.
But demo-trading and live-trading really differs
Today can’t help contradicting the announcement. When you exchange demo, on the off chance that you utilize a marker or EA, same flag or exchange does not execute in live exchanging. Since demo is demo, yet live record included realtime execution, changes made by specialists to the costs, slippage, execution delay, liquidity issues, and so on and so on. In this manner, demo is great just to get hands on exchanging. Yet, NEVER excahange a demo and apply the same in live and 99% of the time you will free. On the off chance that you don’t trust me, open a demo and genuine record and apply a similar system in 2 accounts at the same time and you can comprehend what I am stating here.
Trading with a demo account is like flying in a paper plane. A useless baseless task that is used to lure customers and profits, while also providing experimentation with platforms.
Would you learn farming on Farmville? Discover horse-riding on a video game?
Real money. Real experience. Don’t blunt the truth.
Hi @Swanface
Astronauts practice on a simulator before operating real spacecraft, because the cost of failure is high: Simulators Give Astronauts Glimpse of Future Flights | NASA
Astronauts typically spend hours training in simulators for every minute they fly in space so they are familiar with planned activities and can react quickly to unusual events. They rehearse their own decisions, as well as learn the teamwork vital to successfully overcoming a hurdle.
While trading isn’t life or death, getting an understanding of pip calculations, how leverage works, and the mechanics of placing a trade on a demo account, can avoid costly mistakes with a real account. As you also mentioned, demos are a good way to try out different trading and charting platforms.
Many experienced real money traders will continue to use demo accounts to test new strategies.
Very true, thank you. My main crutch is the psychology of money. I’ve seen great demo traders turn to mush when real world events occur, even when diligently prepared for.
There is a bluntness and almost a harshness when real money is involved. It appears to create a type of ‘survival-complex’, where years of training can fly away due to some deep & rooted psychology.
The best way to handle this, in my opinion, is trade real money. Feel the elements! Don’t shy away for perceived ‘safety.’
Cost-of-failure. A brilliant term. Thank you for sharing that article. Perhaps, in my humble opinion, cost-of-failure would not diminish, because of the web of safety demo-trading provides. Hiding what real money is like, of which nothing can compare.
But I concede, you are probably correct.
Peace
- Adam
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