Hi guys!
Thank you all for the help shared in this topic.
I would like to ask a question regarding switching from demo to real account. I have been trading demo for some time now (more than six months) and I am thinking about trying with a small real account. Four weeks ago I made a new demo account with the capital I would like to start my real account (250 Euro) and all four weeks I have achieved around 5% profit on my base capital. While I have only once posted on Babypips I am a long time lurker and I know that 5% per week is quiet unrealistic. Can you tell whether it is based on luck or maybe it is because its demo account and its more difficult with real account?
Thanks for you time. (Sorry for anny grammar mistakes, English is not mother tongue)
I think it was Aleander Elder (Come into my trading room) who wrote “Read and learn, then open a trading account with $10000, trade that until it is all gone, read and learn some more and repeat until you know enough” - (that is the gist of what I remember. ) If you have Eu250 you are prepared to lose, go for it !
Demo is completely different from a live account. With a demo, you you use it to test your trading strategies such that when you go live you are more confident about your trades- that is assuming your trading edge is present on the market.
Hi hilal, Demo trading compared to Live trading is like comparing learning to drive on a simulator to driving a real car.
There is some value to it, but Live trading is very different & much harder. At some stage in your trading journey you will need to leave the safety of Demo trading & do it for real.
If you are agonising over it - don’t do it. If not - start live and start very small.
You don’t mention if you have funded your Live acct yet - if not that is the first step.
Your profit will always vary month to month - 4 weeks is not a long time to make assumptions on whether your return is sustainable or not.
Thank you! But the thing is I cant afford to lose 250 EUR. While I do have a full time day job EUR 250 is a the average monthly salary for where I come from : ( so…
I think demo trading is not different than live trading. If you wanted to compare both of them than demo trading is safe because it is virtual. But in live trading trader has to invest real money. That’s why live trading is risky. Though demo trading is not real but all the result are real here. It is good for practicing and for gathering experiences. Like Kruger said I wanted to edit, demo trading is playing a racing video game and live trading is participating in real race.
You don’t sound really convinced about your trading. I think that the only difference between demo and real account is that in the real account you will make much more stupid decisions than in demo account. So if you are not convinced about your ability to trade, then it would be just like gambling. And if you say that 250 eur is a lot of money for you and you can’t afford to lose it, then don’t do it, because you will definitely lose it.
Its not about conviction, I just dont like diving head first without knowing what to expect and thats why I asked. Only once I have blown up an account. And most of the time I have successful trades yet I’m guessing you know that most retail traders are not successful so I was wondering whether I am missing something.
Kind regards,
H.
But if you are asking a question about switching from demo to live trading then you are not conviced about your trading. If you would be, then you wouldn’t be asking…
Trading is all about confidence, all about trusting yourself. Because it’s your money on the line. We don’t care about your money, only you do. You wouldn’t start any other bussiness if wouldn’t be certain about what you are doing. Then if you aren’t certain in this case, then keep practicing in the demo account until you are. Trading is bussiness, so treat it like that.
To get a meaningful reply, you need to give us some clues about hw long you have done this and how “successful” you are. I can see that if Eu250 is a huge amount of money to you, this could be a good wy to escape, but almost everybody loses money at this game to the state of giving up completely or going Bancrupt.
You have a serious challenge ahead of you. Don’t go live unless you are champing at the bit wishing you could convert your paper profits to real time.
Trading is like a challenge when we want to do live trading we should know the art how to react market and fulfill this challenge . If we loose money it is not a new thing we learn from trading again and again. Never do trading in high risk when you are new to live trading this will save you from big loss.
Of course you need good practice and experience to switch from demo to live account. What amount will you use for trading it depends what you had in hand, never use high amount as a starter . $200 are enough for initial live trading. Or you can get benefit from micro accounts.