I just started learning on babypips today. Please at what point during my learning should I start trading?
When your mindset is ready to face the challenge. Open a demo account first, to practice and experiment what you’ve learnt. One step at a time, Rome wasn’t built in a day.
best of luck.
Cool. Thanks so much for the speedy response. I’m going to take my time to learn
The quicker you start w real money the quicker the real learning begins. Only trade with what you can afford to lose 100%.
The only good a demo account can do is familiarize yourself with a broker’s trading platform.
Make sure your first strategy is simple and objective. Demo it until you are either consistently profitable without random lucky breaks, or until you understand why it won’t be the right strategy for you. If the first strategy fails you, you will understand why and from that you will be able to either adapt what you’re doing or select a more suitable system.
Then move into very small real-money positions. Be cautious in case your broker’s demo platform differs from your broker’s live platform. From this point you will start to feel the pressures fom putting real money at risk so stop-losses could be vital, and make sure the risk is not so great as to keep you awake at night.
When you’re prepared to lose money
This might look like a joke, but it is what it is. When you have money you can afford to lose, you may start live trading. But don’t lose it without learning anything. Practice with it.
I actually find it very surprising when I see some traders spending 4 to 6 months on just a demo account, I mean what good is that gonna do!
So how much time do you reckon is ideal to spend on a demo account? I think the time that I spent practicing on demo helped me better my strategies to quite an extent.
I am not saying that one particular time is right for everybody but prolonging the demo step is of no use in my opinion. Like I spent a month and half practicing on turnkeyforex’s and IG’s demo accounts which I think was more than enough to test out my trading plan and to know about the interface and functioning of the brokers I had decided to use.
First complete learning basics of trading start practice on demo when you feel that your trading strategy is working and you are confident enough that you will gain profit then only go for live trading.
It’s not spending time, it’s about learning and everyone has a different level of understanding. After all it’s about money, choose wisely and live well.
Give enough time to your learning, initially practice on demo accounts, when you feel confident and realise that you have gained sufficient knowledge then you can start live trading.