I’m demo trading right now. But I’m just wondering if you guys feel that opening up a demo account is essential when starting out or do you feel that opening up an account with a smaller balance is better? If it isn’t either of the two what do you think is the best way to go about starting to trade?
7 Likes
Demo trading is very important for someone who just started out, is a complete newbie. but if you have a little experience and want to feel what real market looks like small account is the best option.
4 Likes
Definitely demo before live trading!
3 Likes
From me; demo is the best! You just need to treat the demo as your live account; so here mental setup is important! As I see, a number of traders take this learning opportunity as a fun (unfortunately).
2 Likes
i don’t think demo trading is essential
it’s clearly been of great benefit to many people, though
i think people who can afford to lose $300 or more as part of their learning process are probably better off trading with real money while they learn and practice
as long as they understand that they’re going to lose it
the big mistake many people make, unfortunately, is trying to start and practice with $100 or even with $50 instead
that doesn’t usually work, and doesn’t normally help them much either, because it’s very difficult to use sensible risk management with so small an amount
you need about $300 to be able to trade a single micro-lot (0.01 lots) with sensible risk management parameters
it’s true that you can open an account at a broker that allows infinite granularity and trade even smaller sizes than that, but how many people really do it? people at that stage just don’t know how to, do they?
3 Likes
No, not necessary. Trading a small amount of real cash is better.
3 Likes
demo is important or not , its a complicated issue , because the experience we take from demo , practically not works when trading in live.
1 Like
Depends on your level of experience. I think it’s a good idea to start on a demo if you’re completely new to trading. No need to make mistakes on a real account such as working out correct lot size etc.
2 Likes
It depends really on the purpose it is used for and, quite frankly, how seriously it is used!
It would give a much better idea of what a demo account should be used for if it was called a “trading simulator” rather than a “demo” account.
In the early stages of learning, and indeed throughout one’s trading career, a simulator is an excellent way of a) familiarising with the basics of fx and other markets and trading in general, and b) testing out new ideas and strategies without any concerns about the loss potential.
But once one has selected a strategy that one wishes to apply to the markets, and is already familiar with risk/management criteria, then it is probably far more effective to trade live with a small account so that the personal psychology and other factors are also involved.
Unfortunately, one often gets the impression that newcomers tend to use a demo account more as a kind of computer game than a comprehensive professional simulator for developing trading skills.
4 Likes
i was profitable with Moving Average in demo but when starting a live account it worked not at all as like before. its my own experience about demo.
1 Like
I don’t think it’s essential for a beginner. Just really depends on the trader. If you feel like you could go live right away and have the funds to do so, go ahead. If not, demo trade a bit, but don’t expect it to be the real deal…
1 Like
I still pilot some strategies on demo, it’s just a nice way to trial new approaches. It’s worth it even to learn the platform you will be using.
2 Likes
Demo is essential to increasing gains and/or reducing risk but a novice can profit if they are conservative enough and the average duration of holding positions is long enough.
1 Like
for all time it is difficult to believe demos result , because there is no real money and no emotions work when trading but of course its a good place for learning.
2 Likes
I read on another forum they are completely against demo, as it does not teach you the real life situation, what do you think of that?
1 Like
Depends how that individual treats the account. If you treat it like it doesn’t matter then it’s pointless. If you’re testing a strategy before going live then it’s very useful.
I see your point though as the emotional side of thing are very different.
2 Likes
That’s a good notion on an emotional side of things. Thank you.
1 Like
At first a trader must try to open demo trading account to acquire knowledge of trading. And then he should try to work with smaller trading lots initially and when a trader will be able to perform trading activities then he can go with larger investment.
1 Like
i think demo account is must, even for a real trader, i always test out my strategies on demo before actually going live.
1 Like
I respect your opinion, mate! But I have built my price action trading skill on demo; so for me demo is not useless!