I don’t think there is a set amount of profit. If you can see that you can make enough money for your needs (whether part time or full time) and that you think that you are getting consistent results over 3-6 months without excessive drawdown or risk taking then its enough. Some people might be happy with 10%, others happy with 1000%.
Its not the amount of profits, but the trading system and the consistency of the results thus obtained which determines your next stage of trading in the live account.
I was always profitable by end of month on a Demo after about the first 6 months and did Demos for about 2 years before live trading. Took me 4 years to be consistently profitable in live trading. I am just being honest about my personal experience. Anyway many years later I am living of trading and Still here.
Trading for 2 years demo must take a tremendous amount of patience - I traded demo for about 3 months seriously (dabbled in demo for 3 months prior) and I couldn’t wait to start live. I have to say that my trading has completely evolved live though since I suppose that when you are trading demo you don’t care as much about profit, whereas live you are constantly trying to refine your trading.
I agree with you. This is one reason that I never spend a day in a demo account. The only way you can learn how to trade is by trading.
The truth is that I never traded in demo with much concentration to keep a record of my profits made in a demo account. Most of the traders have this habit that if they lose a huge portion in demo account they start over, same was the case with me.
That’s your opinion. I have never used a demo as you will never learn how to trade (I do assume you directed your statement primarily towards me as I seem to be the biggest advocate of anti-demo usage and believe me I do have the brain cells to actually understand why I make that statement). Trading psychology is never taught in a demo account no matter how serious you treat it. I have met countless of new traders who have demoed for over a year and approached it with a serious attitude. The did well after a while and when they went live the blew their account.
It worked for you, great. You can keep telling people what worked for you. I tell traders what worked and works for me. That way new traders have both opinion and are able to decide which way to follow. I never tested a trading plan in a demo account, I need to know if it works in real life and if my trading plan and I work together in real life as I do not live in a demo world. That is my opinion. Those who are scared to even try it with a $100 micro-account (that’s how I tried my trading plans) they should not trade at all.
You should never trade with money you can’t afford to lose (I hope we agree on that one) and unless you have at least $1,000 to deposit in a trading account you can’t even expect to manage a portfolio with the appropriate risk management (SL with 10 pips is not risk management, go ahead scalpers and rip this post). So if you are unable to invest $100 into your own trading education and strategy testing I think you are bottom fishing in the wrong tank.
This is very true, people lose multiple demo accounts and only remember their good ones.
At least 4 months of consistent demo trading with over 1000% profit on the demo account is something I would recommend. Achieve this and you lower the probability of loosing your account in the first few days.
Grix
Demo is important in mastering trading platform’s functionality. And only for this. Real experience and the feel of market comes only from a live account.
As a general rule, if you can double or tripple your demo account using good money management rules and same capital that you are willing to use in your real account using one strategy then you can start in real account
I wouldn’t go with “doubling or trippling” yardstick … If you:
- Are “disciplined enough” to follow the rules of your system
- Know and are confident that based on your system you can turn a profit at the end.
I’d go with a 50 pips per month in profit, if I can be consistent and am disciplined with my system.
50 pips per month? That sets the bar so low that it almost makes no sense to even start trading, but that is my opinion only.
Making profit on demo account is easy . it had big amount of capital which brings profits even for new traders. before enter to cach account a trader should try to manage that much amount from demo account which he will invest in real account . In this way he can judgehis trading skill.
You do not generate profits in a demo account. You do not even trade in a demo account.
Go live, but use a micro account (1 dollarcent/pip). Find out which strategy works for you and then you can increase your lot for trading slowly. In this way you learn to trade with minimum risk, but you will use your own money. And that is really different from “demo” trading. You probably won’t do very risky trades. And also, a live account is much more reliably follows the market prices, then a demo (smaller slippage!). Great trading!
Fantastic advice. I have a demo account of $10,000 on which I am $600 down in approximately 6 weeks. I had intended to make $50 per day. I do not intend to trade live until I have recovered my losses and have made at least a 5% return on investment consistently for 2 months.
I am glad to see a few more people who agree with my minority point of view.
TheLastBear! Sorry! I did not read through the thread, just wanted to comment. So then, I agree with you TheLastBear!
TheLastBear! I have read through your comments on this thread. I must say that I completely agree with you to the last letter! You can’t live life in a box! You have to go out and try it for yourself!