I am a beginner and I am trading on demo account to enhance my trading knowledge. Would you suggest me to move to live trading besides demo practicing? If yes, how much should I invest?
Invest an amount you are comfortable losing.
Your demo account is for experimenting with different things like timeframes, price action techniques, indicators, target and stoploss approaches, etc in order to develop a strategy that suits you. It is fake money so you can freely experiment without any pressure.
Once you feel confident that you have a strategy and risk policy that will function reasonably consistently then it is worth trying it live with small positions. This way, you then get the feel of the additional pressures that arise from wathcing your live funds.
Even when your trading seems positive, keep your ambitions modest and your equity management strict.
And, of course, you can always use your demo account at later times to test and try out new ideas, etc.
It depends on how much education you’ve had. I wouldn’t recommend anyone trading live funds until they’ve learnt at least the basics, but even then I wouldn’t suggest it until you’ve completed more advanced education and are trading profitable on demo accounts. In my opinion, there isn’t any point jumping in to live trading unless you know what you’re doing. However, saying that, jumping into live trading will teach you a very important lesson about how quickly you can blow your account and the importance of education. The biggest misconception for new traders is that it’s easy and they’re going to be rich with not much effort. Unfortunately nothing can be further from the truth. Trading is an insanely difficult skill to learn and master, it takes most traders years to become profitable. This is why most traders fail, they don’t have the patience to learn and get the right education.
I suggest you first learn how not to lose money, whether it’s live or demo, and let the rewards, if any, take care of themselves. Forget about anything else. Your only control over the market is your risk exposure. This great education site is ideal to help you.
I have been trading live for two years, following a previous two year stretch developing a profitable strategy and process on a demo account. And I still have losing trades, despite being a profitable break-even trader. Climbing Everest with a backpack would be easier.
Best of luck.
Well, Although I’m not suggesting going live, but it is said that never invest money you can’t afford to lose.
You should move to a real account the minute you get used to actual patterns recognition and feel comfortable doing the analysis.
Starting out invest in a small amount, yet a real one to feel what it’s like to risk real money. You don’t need to risk too much, just enough to understand the psychological aspect of trading.
Hellooo! If you don’t mind, how long have you been demo trading? And in that duration, have you found a strategy that you’re more or less comfortable with? Haha. I think there’s no need to rush into a live account, but if you decide to push through with it, maybe starting with a relatively smaller capital won’t hurt?
Please don’t rush into trading live especially if you are still new to trading (2 years or below) because you will lose anyway. Keep the resources and use that when you’re ready. Learn the mechanics of the market first before invest any money. And by saying ready is not just after you have learned purely technical analysis only. There’s more to it.
Many people rush into it thinking that it’s easy and so accessible. Just deposit a couple hundred bucks and you’re good to go right? And besides, what’s so hard with clicking a mouse button right? Haha.
This emotional driven trading is very dangerous and most prominent in new traders.
More experienced traders would be more careful when trading news and pay attention to the overall market direction.
Invest the amount that you wouldn’t go banana if you lose it completely, which as a new trader you will most probably face that.