Practice with demo account

newbies must start practicing on demo account?

Hi Fiona,

You’ll have to ask yourself this:

Have you understood what’s being taught in Babypip’s school?

If yes, do you have a trading plan? If so…

Does your plan comprehensively covers important point such as:

[B]Trade Identification[/B] (When is a trade? When is not a trade? {Moving Averages crossovers, Chart pattern breakouts etc})

[B]Risk Management[/B] (What is your position sizing, how do you manage your trades during volatile period (news event etc) that may result in potential losses to your opened trades? Do you have rules telling you under what market condition must you not trade?)

[B]Trade Management[/B] (How do you let your profit run? How do you manage your profitable trades? Do you know when and how do you take profits?)

[B]“Me” Management [/B](How do you handle the evitable drawdown {String of losses} such that your emotions will not lead you into making poor decisions that will result in more losses. Does your trading plan contains any components that can help to compensate for your personality weakness {impulsive, too quick to take profits etc}

Finally, have you tested a trading plan that covers all the 4 major components listed above for at least one year on demo? Once its proven profitable, only then will you put in your first real dollar of money into your account.

If you do not have or done [B]any[/B] of the above, then you must accept and consider that any real dollars you put into your real account will be lost.

Yes newbie they miust practice with demo account which this is very essential for especially beginner, forex trading is not easy, many trader get fail in this field, if any trader they only learn theory without practrice in demo, and directlly jump to real account I think will only waste of money because forex market very fierce

I don’t think MUST is the right word. You can practice on a demo or on a live account. You can use a demo account only to get used to the trading platform and all the tolls offered from it. When it comes to the learning part and developing a trading strategy you should do it on a small live account.

Hai Fiona,

I think it is wise if you try first in demo account and don’t just jump into the Forex or futures trading directly.

If you completely a beginner, you should learn trading in a way you will not loose your money but gain experience time by time.
Learn the basic first after that you still need to learn technical.
But this is still not enough, you still need learn strategy. and when you already able to develop strategy, you need to develop your own confidence in trading. while you developing confidence in trading. this comes the hardest part. that is master your own desire and time. sometimes in trading platform people will feel anxious and scared because they see their loss and want to close it. it is also the other way around, when you win profit. you will close it immedietly.
this is where you must learn time and money management. so you know how to make profit time by time and your decision is not controlled by your feelings or desired, but more with Logic and analysis.

When you able to do those above, i do believe you will able to survive in the futures trading and enter live trading.

Thats my opinion, hope it will useful for you.
Good Luck

Well all of this is such a big help for me to start. and yes i think i should do it first on demo account for me to try if my strategy would work. i’ll post update if ever something went wrong with my trades.

Yes trading with demo account is very essential for every starter in Forex trading. He can learn a lot about forex with practicing more and more with demo account before start real trading.

yes your right, it is important for us newbies to just practice first on demo until we know to our ability that we are ready to go for serious trading.

Demo trading can teach are important tips for serious trading. it is a good way to gain experience , do different experiments of trading and see your performance so that you see how will you work with real trading.

Might eventually trader will jump to real account ,and in real account is is already become real battle, and also good to built up better psychology trading, although in demo account get success sometime in real still get fail, this will different emotion pressure

of course, you need to trading demo first, this will help you familar with the trading environment, the tools, indicator…
it’s very risky if you trade live without demo

Well, in the educational process you should learn how to deal with the emotions, and I can guaranty you that you will never learn that on a demo account because there are no emotions involved.

Practising on a demo account is always a good idea, even when you are an experienced trader using a live account. The demo account is good for both studying new theory and testing new strategies and is a very important trader tool.

Demo account is very important for newbie traders, many expert traders also trade on demo account for testing of certain strategies or indicators.