I have been demo trading trading for a few years. I now live trade with a very small account, starting from February 2018.
Sometimes when I trade, I find myself on the wrong side of a strong move.
I now realize that those strong moves were due to FUNDAMENTALS.
As a result I have been following Pip Diddy commentaries and seeing how fundamentals are playing into the moves on the currencies, even sentiment or expectation fundamentals.
As a result I benefited from the GBP move ahead of (and post) UK CPI report on Wednesday
Pip Diddy also posts a set of charts that show overlay of pairs for a currency such as GBP.
It shows the overlay of related GBP pairs from start of week.
Does anyone know what steps are used to create a chart like that in TradingView?
I tried but cannot get all pairs data to start from the beginning of week.
Do I need to pay for TradingView, instead of using the free one?
Hi @alaing, just curious, how many years did you demo trade before starting to trade live? Also, did you really intend to demo trade for a long period or was it due to certain circumstances?
@CoinLady it was mainly due to circumstances. I did go live at earlier times with very small amounts, but failed. So demo’ed off and on. I demo traded more recently for about 4-6 months.
Key factors to keep in mind:
Demo trade for at least 4-6 months
Do not demo new events, on real accounts there is HUGE slippage
Go live with only with money you can afford to lose
Live trade for a year, if system works then you can think about adding funds
I see. Thank you so much for replying to me @alaing and for giving me some pointers. I feel a little nervous about demo trading because even if there’s nothing to lose in terms of money, I feel it has a psychological impact if fx trading is something I can really do.
That is a very valid consideration.
However, if you do not overcome nervousness about demo trading you are not going to move forward.
I think this problem depends entirely on how you approach your demo trading. It is not the purpose (at least to begin with) just to see how much profit you can make. It is a training and educational stage where you can trial the theoretical things you learn about and familiarise with how markets move without the emotional stress of having your own funds at risk.
It is a way to find out what is the most suitable trading style for you regarding methods, timeframes, exit strategies and so on. Losses on demo are of no consequence provided they teach something regarding the reasoning for those positions.
It is far better to develop systematic progress on demo - eliminating what doesn’t fit or work and expanding on what does (and why!) - than to continually randomly jump from one advertised method to another (as people are often tempted to do), as and when one happens to comes across them, without really getting to understand the principles upon which a personal consistent trading approach are really based.
Just as with project work in schools, demo trading provides practical, hands-on, formative education compared with the passive learning from just reading literature.
Just dive in and get your hands dirty!
I would add that this is a process that doesn’t necessarily ever stop. Every weekend I use the trade simulator on my platform and pick a random month from somewhere back over the last 10 years and “trade” it on fast-forward. It is a good practice session, reminds oneself of one’s rules, shows how market characteristics change over time, and always reveals something new about the way one trades and one’s own psychological reactions. Afterall, any professional never stops learning and practicing
Thanks so much for the detailed response @anon46773462. It really means so much for a newbie like me to get a little push from more experienced traders like you. I guess it’s also because I really don’t want to fail. With demo trading my issue is that if I keep on failing I just might give up. But you’re right I really wouldn’t learn much if I don’t start practicing.
My target is the following month but let’s see…
Do you know any ice skater or ski jumper or gymnast who never practised because they might fall over?
There are three basic things you have to discover:
How the markets work
How to work the markets
How you work
The third of these is the one most people seem to neglect - it is important, we are all wired very differently when it comes to managing stress and emotion. And confidence in one’s ability with the first two certainly helps master any issues with the third.
Use your demo to stretch your abilities, test anything that seems sensible. Make losses. It is far better that you learn yourself what works and why - and what doesn’t work and why! That is what builds your trading character and confidence.
Once you start to feel that you have built a strategy that seems to suit you as a person and your circumstances, then you can start to concentrate on trading it systematically to verify its profitability. But before that if you don’t courageously try anything and everything that comes your way, you will be constrained by your existing conceptions and maybe miss out on finding your true potential.
