Would I trust my money with someone that has never traded live before? Something of a no-brainer methinks. So why should I trust my money on my own lack of experience?
You need to run a practice account even if only to learn how to use the trading platform and explore its potential. Even if you have a crystal ball where prices are concerned, its all to easy, in the early stages, to place an order minus a stop-loss or a stop. If you are doing things correctly then you will set this up when making the trade but, what about setting a stop/stop-loss after placing a trade…not knowing how could cost you dearly. (Of course, no one does that. right?)
Or how about your lot-size? Get that wrong and then find yourself wondering why the numbers are changing faster than expected.
A trading platform is not a word-processor. There is no ‘undo’ button, no ‘save’ button and the broker always gets his cut.
Get familiar with the platform. Explore every menu option, even if you never intend using them all. Having money on the line is a bad time to be wondering: ‘How do I…?’
Yes there is a difference between a practice account and trading live. Its your time in the flight simulator…time with your driving instructor on quiet roads…time spent with donated bodies in medical school.
I don’t think demo contests are very realistic because they usually take place only after a month. This can really be different from real trading where its a long term objective.
IMHO trading contest are meant to be played a certain way. either extremely aggressively to build and early lead or bust out. or survive the first few phases of people busting then get aggressive and make up lost ground. Neither strategy are methods for consistent trader success. They are specifically modeled to beat the contest system.
Well we would agree demo helps you boost confidence, but I think the main problem in contests i the perspective you put yourself to pass beneath the expectations by forcing trades, or by beeing extra-sensitive and over defensive. I’m absolutely a new trader, and every little methodology i put on my own has failed me few times in past four months, but hey, I’m still learning and I’m aware of discipline which I don’t admire enough. And if it’s about the thrill, maybe we should avoid it cause nothing good comef from unquenchable appetite for affection. I’m skydiver though and it’s more like getting to know yourself and staying focused on the important info since everything goes quite fast, 120 mph is not a natural environment for humans. Wish I could apply that sense of focus to trading though…
You are right, I myself consider demo contest a bit confusing and irritating for newbie traders. Those who already don’t have any proven system will only waste their time in demo contests, but if you trade with high lots testing you luck, then may be you can get lucky enough to win one.
If the contest participation is free and has a real $$$ prize, you should try but there will be huge competition and the possibility that you will win it is too small. But you will test yourself and if you are too good, you can earn starting deposit for real trading, or at least find someone who will buy your signals.
I agree with you MH. As long as traders are aware of the difference and want to give it a try just for the hell of it why not but they need to be aware that the way you play a contest is not the way you will ever trade unless you want to blow your account.
As a rule newbies get luck in their first steps of trading. That’s why even if there is a big competition, you are able to win in the demo contest. Any way in my opinion, demo competitions are useful for rookie traders, they make them feel mthe difference between live and demo trading.
We can always agree or disagree if joining in Demo contest can bring a benefit to hone ones skills of a trader (New or Experience one). It is a personal choice. If you have the personality who likes the thrill, gain experience and see what it is like, and the courage to do it, why not try it. Sometimes pushing yourself to the limit can open yourself into another level of possibility and experimenting yourself can also help to unlock the other skills you have that you don’t know about… doing the same thing over and over and being so comfortable in your comfort zone can be boring sometimes lol…So many possibilities around, don’t be stuck into one thing and one thing only … Sky is the limit…
Awesome! So wanted to try sky diving…You should definitely apply those skills you already have in trading… Same thing; you have to know yourself and who you are as a trader and stay focus…
You get a huge booster in your trading confidence if you win any trading contest. I had won one and it felt great. Although it was mainly because of massive fall on Silver and jpy rally that I caught to make 800%+ gain on my account but still the feeling was awesome.
You could also get a huge boost in trader overconfidence and blow out your first live account because you’re used to trading with huge risk percentage to beat out other people.
This is so cool. I never thought about these contests because I felt I wasn’t good enough. I guess it was suffering from inferiority complex back then. I think I should try register for this type of contest.
It is also advisable to open a micro account with any good broker that offers it and try to trade there. At least you need to know what a real trade really feel like. You don’t actually trade with a demo, it is a tool that helps you get familiar with the concepts of trading without the emotional mix up or market characteristics.
Interesting. So how did you approached your live trading then after winning on the contest? Did you apply some of your experiences from the contest or did you do differently? I would think that since you have achieved an additional boost of confidence from that you will feel more confident about yourself. Or is it the opposite?
Nice query, going to second it - winning a contest, sounds good but how does it impact your daily trading, given the confidence boost? Hope the poster gets back on the query…
I can answer that question as I have won money in various demo contests… It is VERY hard to trade a demo contest while also trading a live account… To win demo account you have to be extremely aggressive and risk is out of control… Inevitably this affects your live trading and resulted in lots of mismanaged trades on my live account…
If you don’t have a live account then do the demo contests… If you have a live account I would reccomend not doing demo contests.