Ive decided to withdraw this thread.
Mick
Scottish Mike,
Just some general thoughts:
Demo trading with a no risk account that comes pre-loaded with fake money is not the same as live trading with a small, micro-account. For starters, it’s difficult to get an account to make significant monetary gains when your pip value is only a few cents, which is usually the case when you’re trading micro-lots, unless for some reason your risk percentage is extraordinarily high (which is a dangerous practice). Since you haven’t specified your trading system it’s hard for me to say what you’re doing exactly. If you happen to see profitability with your demo account and it appears that you know what you’re doing, my advice to you would be to not trust those results at all. They are based on no risk and are therefore hardly worth mentioning. They are only useful for you to get the hang of how the market works and the mechanics of trading. But those results don’t tell you anything useful about how to properly manage risk and how to consistently make helpful trading decisions when you are under the pressure of not being able to afford a major loss. It only takes one major loss to sober you up so that you realize that you probably don’t know what you’re doing yet.
With that in mind the most effective way I’ve found for people to understand the realities of profit, loss and risk when trading demo specifically is to only trade what you could actually afford to risk in real life. That means that if you can only afford to maintain a $500 micro-account in real life, then on your demo that’s what you should consider your balance to be, despite the amount of fake dollars your broker might put in your demo account. When you view your account in that manner you can then trade according to realistic risk. For example, you wouldn’t be able to reasonably risk hundreds of dollars per trade if all you had were hundreds of dollars total in your account. That means you’d have to seriously consider what risk percentage to undertake. Once you start seriously considering how much you can afford to risk then you would likely start revisiting the idea of coming up with a concrete trading system so you can accurately pin down what exactly you’re doing when you win and lose. That way you’re not basing any results on nebulous data or on your perception of how good a trader you are. When you establish a real system then you can fix what doesn’t work and keep what does, but more importantly you can actually SEE what works and what doesn’t. When you’re flying by the seat of your pants on the notion that you’re a tasty trader because you did well on a fantasy demo account, you’re headed for a hard and painful reality check when you inevitably blow your entire account.
A lot of new traders focus entirely too much on how much money they can potentially make. It’s true. There is a LOT of money to be made. But by the same sword you can VERY EASILY lose [U]ALL[/U] of yours. The smartest and most successful traders I know focus on how to stay in the game long enough to win in the long run. That means not getting fooled by demo results, establishing a straightforward, effective trading system, and making certain with all their effort that risk is minimized as much as reasonably possible. They also stay plugged into the economic developments all day, everyday, all over the Earth. It’s really not an easy thing to do. If it were, none of us would be here discussing it because it would be a worthless skill. It’s exactly because trading is challenging that makes it rewarding both financially and otherwise.
I’d love to be more specific with you but until you specify your trading system I really don’t know what to say to you. I can say that I’ve noticed some red flags in what you’ve said so far.
Ive decided to withdraw this thread.
Mick
Moneychick
do you make a living off the forex ?
Wow!, 3 pages of this thread, my head is like a gas meter.
Tell me Mike, what exactly you want, I do not have the intellectual level sufficient to understand …
You do not want to share your system, frankly, I dont care, but if as you claim, you are a true reflection of this site, you must do your brain work, more for reflection and for the sales pitch.
Sorry for my English, but as I’ve been very very little at school, I can hardly speak.
Good luck.
I think you are getting alot of negativity and opposition because you arnt sharing your trading strategy. By sharing it people will be alot more open to help, as you probably would have helped us by opening out eyes to a new type of strategy. Together both parties benefit.
Ive decided to withdraw this thread.
Mick