I am new to the forex world. I have just completed Preschool. When should I start demo trading?
Hi, I think you should complete course. Regards Greg
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You can start demo trading anytime thru your education. Nothing to lose in demo.
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Start when your mindset is psychologically able to control wins and losses without any emotional reaction. Be a human robot and treat trades as being just percentages, not dollars.
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No doubt live trading should be started when you know how to keep your emotions at bay, but I strongly believe demo can’t accurately replicate the ups and down of the actual market, nor can it generate the emotional turmoil traders experience when they put in the real money at stake.
Calvin, I spent 8 months on a demo account,which is intended to be a mirror image of live charts - otherwise what’s the point? Brokers aren’t going to spend fortunes creating another platform chart.
Also, I set up my trading strategy exactly as I would trade on a live account, the same risk and money management, the same capital, the same lot size, the same monitoring, the same leverage. Every single trade was recorded, mistakes identified, and lessons learnt. It only cost me time, not money.
I lived that account day in day out until it became second nature, and also taught me how to manage and resolve emotional reactions. Come the day when I replicated it on my live account as though it was still my demo, the transition was seamless. But that is just me, I trade differently.
I recognise others won’t do that and you are right to raise that very important point. But it all boils down to being able to manage risk, and control losses…
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You can start a demo account anytime it pleases you. It is a demo account, and you can practice the things you learn without risking anything. Since there is no risk, you can do it anytime. Start now please
Agreed but let’s consider a demo account as a test drive of your trading plan and strategy till the time you actually become proficient in executing it. See, as a novice it’s really important that you learn about the functioning and features of the trading platform much before you start trading on it. There are brokers like Fxview, Pepperstone, and eToro that give you platforms like MT4 and MT5 (which I find are far easier for beginners) and a demo account can actually help one get the feel of how the market works without risking real money.
You can go about your demo trading s you learn more and more about the market.
I understand you and didn’t say that demo account shouldn’t be opted for. I simply believe that it’s important for every beginner to educate himself well about the basics and once you’ve settled on a trading plan, you need to stick to it and believe in it when your money is on the line. Eventually, a trading plan is only effective if duly followed. All the traders, including me have lost money, but it’s important to maintain a positive edge, which will ultimately help in staying profitable.
there is not any exact time when to learn new things you can start anytime
Not to deny, the demo account won’t make him experience the true nature of the trade but it would train the beginner to put his plan to test in situations very similar to the real-market conditions.
DEMO trade NOW, and keep demo trading until you achieve 3-5% per month for 3-6 months (minimum), then and only then should you even think about going live. Also a pro tip, look at these companies that fund traders and look at their risk parameters, do ALL your demo trading revolved around these parameters and you can eventually be funded.
Once you think you have that level of knowledge required to start, go ahead with demo trading. Knowing the practical aspects of this market is very important, which demo trading definitely helps in, but before that acquiring info on every bit of the theoretical basics, is also crucial.
From my experience, I suggest trading in the demo account after you have gained enough basic knowledge about forex and how the forex trading market works.