It took me one year before I was prepared to trade in the real market. But the duration is different for every person. Whenever you feel confident and ready to enter the real market, you must do it.
You can set yourself a goal in trading.
For example, to earn 10% profit in a month.
If you can meet this goal, you can try to trade on a real account.
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You’re absolutely right, since everyone has their own capacity of retaining information and taking their own time to move into course of action. It can depend on their style of trading and time frames. Generally, one can demo trade for 3-6 months to get a good idea of how the process works.
Depends on you! But it is good to trade live with a small risk, if you have a tested strategy in hand. Live accounts are very different in experience than demo accounts. You might blow a few live accounts in your early days. But trust me, if you keep going and learning, it gets better.
You should stay in a demo account and keep practising or developing your strategy till you make consistent profits for at least 4 to 6 months.
I think the idea is not to leave it entirely, we can always go back to demo to try out strategies and the rest of it.
If you feel the need to ask this question from other traders, I don’t think you are ready to move to live trading. Demo trade for as long as the demo trades don’t seem boring and you can’t learn anything new.
demo account is definitely the place to test out new strategy or any changes you make to your current one. If you feel somewhat confident in your knowledge and strategy as new trader then you always can start with a micro/cent account to lower your risk.
This question is answered in the School of Pipsology:
I prefer a live account with low leverage not more than 1:50 and start the real trading . This will save a lot of time and you can discover the behavior of the other side of trading (Dealer) . I will assume that you have a successful strategy with positive back testing result . this the most important part of the whole story.
The problem with Forex is that you will become addict to the game before you feel that . Then will be so lucky if you realize it is betting and not trading , at that moment the game will change and you will be on the correct way to find the strategy that could work
There is no right duration of time to stay in the demo account. You can stay as long as you want. Your purpose in a demo account is to make a solid strategy you can use in live trading. So once you have made that strategy, run it in the demo account. When you get around 6 months of constant profits with the strategy, you should switch to a live account and be consistent with the same pair and strategy you were using in demo trading.
There is no fixed time to how much a trader should spend in a demo. I spent a couple of weeks before going live with turnkey forex, but I still go back to demo to test my strategies especially when they are not bringing good results.
Literally anyone, can pick up a strategy that with a bit of luck, happens to suit what the market is doing at a given point in time, and profit and then the market changes and your strategy no longer seems to work. you do a bit of back testing in replay mode, you pull a new strategy out the hat, you get a bit of profit, and then the market changes and the strategy no longer works, wash rinse repeat until you start to learn that a strategy in and of itself is almost worthless. It is the ability to read the broader picture that really counts for something. The setup is just a method of framing a trade based upon solid market analysis which is not so easy to condense down into a simple rules based checklist or flowchart.
The truth is, before a trader can really and truly swim and stay afloat over the duration, they need thousands of hours of screen time and experience of calling, executing, and managing trades under all sorts of market environments. The trader needs to build up an intuitive sense of what a market is likely to do whilst also feeling ‘attached’ to the market, which I would imagine would be very hard for most traders to stay motivated and attached in demo mode alone, so probably expect an extended period of dipping in and out of live accounts (just keep the account size low).
They say in Chess, a high level player has around 10’000 different configurations ingrained into his subconscious mind, to allow him to quickly assess the moves open to him with the most probable outcomes in his favour. A high level trader has to have a similar skillset, although with Chess, the rules are confined and constant. With Trading, they are not, but there are non-the-less themes that often repeat themselves.
My point is, there will likely be quite a few rounds of ‘Eureka’ moments when a trader thinks he has mastered it, followed by ‘Back to the Drawing Board’ periods.
A better analogy for trading, was an experiment done, whereby a dot, driven by a computer algorithm would appear on a grid, and test subjects had to guess where the dot would appear next. Whilst the algorithm was far too complex for the test subjects to figure out rationally, it was found that the longer the test subjects spent watching the sequences of dots appear on the screen, the more accurate their ‘predictions’ on where the dot would appear next became. Whilst algorithm was too complex to be figured out with the conscious mind, the sub-conscious mind could ‘figure it out’, allowing the test subjects to develop a ‘knack’ for guessing the dot location correctly…same thing with the ‘art’ of trading.
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Until you are consistent enough in your demo; don’t open your demo with a certain target, it’s a wrong practice!
After the initial learning phase, a demo account is crucial to practice trading knowledge and figuring out the strategy that works and improving it over time. A demo account is crucial to follow because it will help beginners learn how to trade. At least six to eight months of demo account practice is required. And one must not leave trading on a demo account to trade on a live account until one earns profits consistently.
You should stick to demo trading until you are confident in your trading abilities.
Use it until you know how use the platform very well . Then start with 100 $ live account to find out early about the company you deal with and know all hidden problems and may the tricks you could face at different markets conditions .
Now this may takes days , weeks , months or more likely years . During that journey you will take piece from every science you may know : math , finance , coding , coding , coding and coding 1000’s of useless strategy . You will work at different time zones , at different places . Greed and dreams push you more and more towards unclear direction and results .
After countless number of hours and 15 years of your life , and if you lucky if you pass 40 years old and still alive .
After that all , you may be one of 10% luckiest Retail traders “Or Gamblers” in the world. But may question , do you know When ?
The purpose of demo trading is to brush up all what you have learned in your course, and apply it practically. In a demo trading account, the newbie should use his knowledge to make strategy, test out as many methods as wanted, and find out a good entry point. Demo trading is the perfect place for practising before joining the live market. A newbie should keep demo trading till as long as he starts feeling confident about his strategy.
Before beginning real trading, it is advised that new traders trade in demo mode for at least two to four months. They will gain a better understanding of the market and learn how to trade profitably as a result of this.
One year profitable on demo will certainly do the trick.