You are somewhat correct my friend! I think demo trades help a new trader but when a trader transitions himself to the live trading market after two to three months on demo then he may realize that strategies are not working the same way as on demo. According to me, the reason for that is in demo trading there is no such pressure as in the real market. I would suggest to such new traders that you must give yourself a break. It’s normal and everyone who is a profit earner has gone through this phase.
Just make sure that while entering into the real market you must have practised and read about recent events happening globally and strategize your first trade.
You’ve covered almost everything. But till the time you place your first trade, there’s no chance you’ll get to know whether you’re ready to trade or not.
As you see that you’re already tested your strategy on demo and it shows good results then you can start to trade on a real account. Moreover, some traders recommend not to face demo account mostly because it’s just a waste of time and the biggest part of traders should start from real account right away. I’m not quite agree with this point of view because it’s just a faster way to lose all your accumulations, you know. Every trader has to stay on demo at least couple of weeks and months and then go on real account to earn money. Well, everything won’t be good from the first steps but you should try and never give it up.
Hmm, that is something that you have to guess on your own, I would say.
For me, I tend to keep practicing strategy more than I should be in order to get a good results. Once I see them as a strategy winning, then I can continue the very same into live trading. But sometimes it does not turn out that way, so I would say that you got to think about it on your own and find the way you think can work out and making you ready to trade on live.
In my opinion there is no specific right or wrong time… obviously you should understand the risk involved so as long as the basics of risk management can be followed theres no reason not to try a live account, just start with a small balance and stick to trading micro lots for pennies… also this could give you a little more insight as to how some brokers operate differently within a live account as they do on a demo. And then some practices I would reccomend would be if you lost 3-5 trades in a row. Stop trading for the day, re asses how your applying yourself to your positions… its an ever growing journey of self improvement trading so I don’t believe there’s a time when you’re ready to trade live so be it… just how much money you should risk is dependant on you as an individual