Yeah, though the explanation is true somewhat, wouldn’t using a demo actually allow the trader to come up with a trading strategy rather than go live right away and try his or her luck at trading?
a trader should come up with a strategy before they open any account, not after. they should learn about the market - various terms and times and whatnot - and determine whether they are the fast-paced scalper or the methodical swing-trader, and that can be known simply by looking at oneself and one’s attitude / approach to everyday things.
so they pick ONE approach. but to actually know whether it will work for them and with their personality, they’d need to trade live because that is WHY they are even in this to begin with.
nobody gets into forex with the intention of trading in demo-mode with fake-money forever, and never touching real money. we’re all here to trade with REAL money, to make real profits, so it only makes sense to practice with the real money (even if it’s really really small). folks can be very methodical and calm with demo accounts, and panic like mad with a live account. so, best to practice in the way that they intend to actually trade - LIVE.
luck - well, i wouldn’t call it quite like that, to “try your luck”, because that sounds like pure carefree gambling. sure there IS an element of luck because the future is not fully known, but there are times when placing a reasonable trade can result in wicked gains by luck simply because everything just happened to line up perfectly that time. and that other time. and maybe once again by Christmas.
anyhoo, all that is just my opinion. i abhor practicing with demo accounts for obvious reasons. but i’m the type to shoot real guns and not play Gears Of War for 100 hours a week.
Sophisticated investors take a break in the afternoon and allow retail traders play around. When they return they will take your lunch money unless you guessed your trade right and it is in line with them. So, if you are serious about it, trade in the morning and evening.
Great video links, thank you.
I am trading on GMT.
Very welcome,
I think 2-3 months is extreamly optormistic ,I would say more like a year+, and even then your pushing it.
This is dead right take it from Nikitafx,learn the market movements,pehaps start with one pair,say eur/usd ,learn what makes it move,BigPippin (this site)does a great daily chart and is a wonderfull insight in what made the market move yesterday.Also read all of this sites" school",you wont find better and its all free.cant be bad can it.
me being a total noob myself i dare say only one thing. After being blinded by the endless margin on a practice account i opened up one quickly with a little real money and succeeded in losing about 25% of it in a week. So far i’m convinced patience and lack of emotion while making decisions is a key factor. Other than that, i think i still need to read the school back and forth a few dozen times. I now have a few accounts with a broker that allow me to put very little money in it, while it looks like a lot to really get the feel of what it would be like for real, that’s all i dare say atm. Don’t ‘learn’ to trade with a margin you won’t have for real
Well, demo is for getting familiar with plattform, nothing more. Anyway start with little and make the taste for incertitude your first priority, taste for the game itself, taste for loses and last very last the money. In that order.
Now, we were all noobs once and started out with a demo…and yes, moving to a live account right away does sound good. But let’s face it, with so many noobs thinking Fx market is an ATM with cash on demand, a demo makes more sense since they are apt to blow out their account within the first 48 hrs…
On the flip side, some of the demo accounts differ widely from real accounts that the broker provides to the extent that any experience a trader may pick up tends to be a bit skewered…
That’s true but the reality is somewhat different…I mean most of the newbies are impatient to start trading and dumping their real money in the fx market with no basic trading strategy…
Honestly though, if you take any forex product [from EA’s to online tutorials] they usually start with the usual snakeoil pitch “learn to make a million in a week” or something along those lines. Naturally, the noobs on reading this, just jump into the market and get their accounts wiped out.
I have no restricted strategy…is this bad?
Generally I am going for pattern trading and using various lagging indicators and trend lines to back up my patterns, also keeping aware of particular candlesticks. I’m also trying to bring in as much fundamental analysis as possible to help me decide where a trade could be influenced to go.
Whats the point of all these specific strategies like Price Action?! Why do traders not use every possible tool and restrict themselves to a certain few?
I would have to disagree with the guys who say trade with real money.What will happen is you’ll get wiped out ,the market will eat you up and spit you out.To become proficient you have to work out what doesn’t work along with what does,and that would cost you money ,just practice practice practice on a demo ,for at least a year then if its consistently in profit(ish) start with small amounts.Next keep away from courses that will cost you money,there’s enough good information on the net for free (try this sites school for a start) its as good as any paid for course and its free,hey what more could you ask. I’d also say go for more long term trades ,say 4hour or daily,and don’t confuse yourself with too many indicators,half the time they don’t work anyway.In my humble opinion long term trends and fundamentals (economic releases and announcements)are what you need to watch.Well that’s my 2 penny worth , I hope it helps someone,so good luck and good trading.
It wont wipe you out if you start with a small amount like £50-100. I dont think anyone is saying go ahead and open an account with £10,000 but what we are saying is you learn so much more on a live account than demo. All the physcology comes in to play which is the most important part of trading. The other factors like slippage, execution speed etc are so much diffetent as well.
i would have to say the only thing you’ll learn is how to get rid of 50 to a 100 pound trading account quicker than you can say “flush it down the toilet”,but hey thats just mine and heaps of long term experienced traders opinions.
At the end of the day if you want to start trading it’s going to cost you money. There is no way getting around that. You can try to learn for FREE but you will be limiting your resources and the pace of your educations. I would personally say, initially spend some time on a forum like baby pips and read, read, read. Since it’s free. Ask questions would be next and if people are willing to answer you in a polite manner then great. If not try to understand it yourself.
After spending some time on babypips.com forum I would adventure off and get yourself a demo account that you can actually trades based on the state or country you are living in. Example if you live in the USA you should not have access to 400:1 leverage UK status unless you have more then $10M in asset’s and qualify for an ECP. With that said you should try opening a demo with IBFX which is Gain Capital soon after the merge. Anyways try to open a nano account with 100-200 pretend money and see what you can do with that.
Find one method: if its based on Fibonacci, Daily Pivots, Monthly Pivots, Moving averages, Stochastics etc. Find a method that works for you and trade the crap out of it on the demo account. I recommend failing and trying to blow up this demo account. Get it out of your system. You might feel like what the hell just happened or emotional but that’s good to experience, especially since the cost was $ZERO. Other then that keep your trade method simple and you’re money management realistic to your trading account net balance.
FreeForexIdeas
Come on, you have to read some of the reviews posted against the Big E and some of the other brokers to realize that the money lost by newbies are not just $100 but a whole lot more. As mentioned earlier, the problem is that the hype oversells the fx market and makes it seem like a cash machine that’s just up for grabs…sigh but let’s face it, when we started out in this market, we thought the same…
Hopefully the noobs will as well.
What a load of rubbish that statement is. Didnt realise you speak for all the experienced traders. Sounds like you have blown a few accounts to me. If you use proper risk management, no more than 1% a trade, trading higher timeframes why would the account be blown quick?
Yep i realise that the average newbie will lose more than that but then the average newbie tries to get rich quick like you said. If a newbie listens to the advise on here and sticks to proper risk management they will learn so much more on a live account.
I was going to add another post saying maybe I was being a little harsh in reply to James saying while i disagree with his views I totally respect his opinion as a fellow trader and good luck in his trading but as he thinks my views are" a load of rubish"well I dont know.Also he should realise if he bothered to read my post corectly , plenty of people out there are of the same opinion as myself.Lastley as I used demo accounts before I started trading with real money I have never blown any account and am doing very nicely ,but thank you for your concern.I still say I respect your opion James and wish you all the very best with your trading and happy piping.