Do you think demo trading is essential in starting out?

Beginner Questions
41

Only go live if you feel like your ready and know what your doing.

42

i think you would be foolish to not practice on a demo for a while before starting on a live trading account. Regardless if you ‘‘know what you’re doing’’ already, each broker’s live account is sslightly different and offers different trading conditions like leverage, spreads etc, so surely it is of utmost importance to gauge the trading conditions available before putting your pennies in !?

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43

It is important but does not give you the mindset like real money does.

44

I think it depends on how you treat the demo account if you open a massive account and don’t take it seriously it will do you no good at all but if you have a reasonable account size and treat it as if it was real then it’s very useful, only you know if you have the mentality to do that.

45

Revenge trading is one of the most common issues by the new traders! So; generally they will lose their 300$ within very short period of time.

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46

I find it a bit hard to treat my demo account like a real account. :sweat:

47

Thanks for your reply @flamingoproxy. Yes I’m thinking that maybe I could treat the amount I will initially deposit as a school fee of some sort. My only worry is that I might keep on adding to the initial deposit then realize that I’ve already lost so much while learning.

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48

@krugman25 - Was this what you did when you started out?

@Wara_arif - Why does it not work for live?

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49

Yes. I got started with a cash account.

50

I started out with a demo account but didn’t really take it seriously until I opened a live account with just $300. I honestly recommend starting with an account that’s big enough for you to be hurt if it disappears but small enough where it doesn’t really change anything in your life even if it’s gone. Basically what you’re aiming for is emotional investment. What’s the amount that will get you to pay attention?

For me it was $300. Not small enough where I’d be like “oh well it’s gone I don’t care” but not big enough where I wouldn’t be able to sleep if I lost it all.

51

Then go for cent account with 5$; you’ll get 500 credit; so enough spaces for trading.

52

Imagine this situation:

You come to the Forex market without any knowledge.
-You do not know what is:

  1. MT4
  2. demo account
    3.Trading pair
  3. spread
  4. pip
  5. chart
  6. resistance/support
  7. trend etc…

In few days you find out that you need MT4 to open trade and you find out how to download MT4 on your PC.
Now you know that you need to have account to open a trade.

What will you do? Open real account and start trading?

  1. If you open real account and invest your money you will open a trade without knowing what you are doing. And you will lose money, for sure.

  2. If you open demo account you can open a trade without losing any real money. You can test what is buy or sell trade.

You can learn about trend lines and indicators on both accounts so this is not so important.

Above comparison gives a details insight why is important to open demo account. To not lose money immediately. You will lose money later on for sure. Be patient.

When you practice on demo account you will not feel greed and fear and other emotional states that you will encounter on real account with real money.

When you learn a lot on demo account and figure out how system works then you can open real account with small amount money and then start practicing. Then you will see how emotions impact you and your trading results.

54

That’s not a popular opinion but at least we see there are people who find demo useful

55

always demo dont change to real dont deposit money play forex game with demo dont be attracted allured to make money , you will lose 100%
real forex are manipulated

56

You need a demo account before you start live trading. You WILL push wrong buttons. Get in trades wrong direction, mistake the amount you put on a trade. You need to get used to using the trading platform. After being used to navigating the platform, a demo account is useful to see and at least get tuned to your psychology of watching the trades go up and down and the emotions. This will all change with money, but you have to prepare yourself for account trade going up and down, the psychology of account not going up fast enough or going backwards. however, the sooner you can transition to a small live account, the better.

57

demo account for practice to get used to trading.

58

And to test new strategies. Please don’t test any random idea you read about on a live account.

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59

Demo accounts don’t take the psychology into account.

I know this sounds stupid, but it is real. Start trading with a live account and pay your school fees with your losses. In the long term, you will learn more, learn faster and be a better hard core trader who can handle losses when they come along.

60

I agree, demo trading is good for practicing your trading strategies.

61

There is a clear need of demo trading for getting experience about the market. I always recommend new traders to take a good command on the demo account before investing even one dollar. It is the best approach which you can adopt as a new trader. Thanks

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