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How to practice on demo account?

  • #1
  • First Post: Mar 23, 2011 5:34am Mar 23, 2011 5:34am
Got a huge loss, on my demo account. Why - opened a trade with Huge lot size and didn't place any SL.

Can you tell me how to take it serious on demo account? I can't take it seriously. I can take risk per trade 50%. Place orders without stop losses and so on.

Maybe forget about demo account and start trading on a live. And money will make me to take it seriously?
  • #2
  • Mar 23, 2011 6:41am Mar 23, 2011 6:41am
You can open a real account with $100 or something like that and try learning with real money. And even if you lose your "practice" $100, it can be considered as a cost of learning.
  • #3
  • Mar 23, 2011 6:53am Mar 23, 2011 6:53am
Quoting enivid
You can open a real account with $100 or something like that and try learning with real money. And even if you lose your "practice" $100, it can be considered as a cost of learning.
After reading the thread title I had the same idea. Baby account will give you feeling of real money. If $100 not money for you at all - you are lucky one. Go with $ 1k! Idea to trade with minimum amount of money valuable for you.
  • #4
  • Mar 23, 2011 11:16am Mar 23, 2011 11:16am
Even with a small account it is hard to take serious. Are you really going to wake up early or stay up late to make $1.20 and be happy?

Dump 10k into a live account and I bet you would take it seriously then.
  • #5
  • Mar 23, 2011 11:41am Mar 23, 2011 11:41am
Everyone is different. It wasn't until I could take Demo serious that I started making money. A small amount didn't do it for me, was no different than a demo.

Nonetheless, none of them will make a difference the first time you pull the trigger on your "real" trading account. That's when you hope (but rarely do) you possess the discipline to trade it correctly.
  • #6
  • Mar 23, 2011 11:56am Mar 23, 2011 11:56am
everyone looses money when they don't know what they are doing.....you have to be competitive.......first learn what to do or find a system that works and be disciplined to it. There is no trial or if I use real money , none of that .....you practice until you create your own system or you buy a system.

you will find out that systematic is the safest but after say 8 yrs you can be great and you can take decisions on your own......all have to have risk/reward or a stoploss.

do not try real money if you do not see real profits in your demo and you either had a systematic approach or you really knew what you are doing......there are many algorithms that work....buy one to start and as you get good using it, it will teach you about the markets.....if you want to take decisions yourself or you create your own system then study mta or ifta for cft.....there are no lucky ones only unlucky ones ....don't be one.....


Quoting Allan
Got a huge loss, on my demo account. Why - opened a trade with Huge lot size and didn't place any SL.

Can you tell me how to take it serious on demo account? I can't take it seriously. I can take risk per trade 50%. Place orders without stop losses and so on.

Maybe forget about demo account and start trading on a live. And money will make me to take it seriously?
  • #7
  • Mar 23, 2011 12:24pm Mar 23, 2011 12:24pm
If you can't make yourself treat it seriously on a demo account, chances are a small account won't make you treat it seriously either.

You may want to consider if you're disciplined enough to be successful in trading. This isn't a hobby/career/whatever for everyone. Some people will just never be profitable no matter what they try. That doesn't mean they're terrible, they're just meant for something different.

If you can't exercise discipline, the market will crush you and your account. If you're serious about trying, though, the best advice I can give you is to learn self-discipline then find your system, test it on a demo as you would trading real money to be sure it's profitable and to get the feel for actually trading that system live, then get on real money as soon as you can before you lapse into a "it's just pretend" mindset.

Demo trading is for practicing your system and learning your trading platform. Once you have that down, it's time to go live even if you only have $50 to spare. Make yourself take it seriously, and soon you won't have to make yourself anymore.
  • #8
  • Mar 24, 2011 3:07am Mar 24, 2011 3:07am
Quoting magictiger
If you can't make yourself treat it seriously on a demo account, chances are a small account won't make you treat it seriously either.

You may want to consider if you're disciplined enough to be successful in trading....
I agree with opinion about discipline. to follow your own rules is much more harder on a demo, then on a real account. When you will follow your rules on a demo, you will be ready to go live. This all is in your mind.
  • #9
  • Mar 24, 2011 3:31am Mar 24, 2011 3:31am
I've always poo pooed demo accounts, but after 2 years of trading with a small account I think the argument: "if you can't make money on a demo account you won't make money on a live account" is a valid one.

The WAY to trade on a demo account is to fund the account with the amount of money you'd fund a live account. 1K, 5K, 10K, etc, etc. Then you trade when your method gives you a signal, you calculate your risk, and place the trade. Demo until you are profitable 3 months in a row and then fund a SMALL account and trade that until you are profitable for 3 months in row. Then fund an account with 50% of your total stake and trade that until you are profitable for 3 months in a row. Then go all in. If you don't trade profitable for 3 months in a row, start all over.

If you can't take it seriously, then close down your trade platform and get trading out of your mind. Find something else to do, because you need to have the right mindset to ever make it.

It wasn't until I traded profitably and took demo seriously that I started to trade live much better.


Good Luck.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #10
  • Mar 24, 2011 6:53am Mar 24, 2011 6:53am
LasVahGoose, great post. You explained everything as it should be.
  • #11
  • Mar 24, 2011 7:43am Mar 24, 2011 7:43am
I used a demo account a few months ago and thankfully I did because I lost most of it lol. Went back to the drawing board and learnt more about forex. Started trading on a micro account for the past month. I value placing trades so much more now because its real money. Its not a great amount of money but still real money which i value.

Am not a experienced trader only starting trading this year, so been a few months.

In February I made +127pips and this month (March) am on +372pips. Now I don't know if that is a good amount of pips or a bad amount. Seems to me it is a good amount of pips but would prefer if someone experienced would let me know if its good or bad.

Could someone tell me if its a good amount of pips or bad? Would be grateful

Thanks
  • #12
  • Mar 24, 2011 9:11am Mar 24, 2011 9:11am
Quoting LasVahGoose
I've always poo pooed demo accounts, but after 2 years of trading with a small account I think the argument:...
I would say I have been on demo for two months and everything is good. I think time to go live with small account. What you can recommend me.

I think about Alpari UK micro account.
  • #13
  • Mar 24, 2011 9:25am Mar 24, 2011 9:25am
Quoting Allan
I would say I have been on demo for two months and everything is good. I think time to go live with small account. What you can recommend me.

I think about Alpari UK micro account.
Go for it, if you think it will make you take this seriously. Just make sure you're not risking your rent money. Don't feel bad if you blow up this first account. I think it's almost a rite of passage among forex traders to run an account into the ground. If you manage to be profitable without losing an account, kudos to you.
  • #14
  • Mar 24, 2011 9:36am Mar 24, 2011 9:36am
Quoting magictiger
Go for it, if you think it will make you take this seriously. Just make sure you're not risking your rent money. Don't feel bad if you blow up this first account. I think it's almost a rite of passage among forex traders to run an account into the ground. If you manage to be profitable without losing an account, kudos to you.
Don't worry. I'll use not only my rent money but also savings. This will be my second live account. First one I blow up couple years ago.
  • #15
  • Mar 24, 2011 11:05am Mar 24, 2011 11:05am
Hi,

What I have found in my 13 years of trading monies for my account and others is that when training new traders it is sometimes difficult to assess their talents on a demo account. The emotional aspect with real monies often changes once someone actually can say to them selves "Wow I made 25,000 today that is a new car, or wow I lost $2,000 this week that is my mortgage. We dont really assess damage or winnings from a demo account in the same way as a real account. The best way I have noticed among some of my Wall Street friends / Traders is to act like it is all a game regardless if demo or live.

Regards
Gary Summers
  • #16
  • Mar 25, 2011 2:18am Mar 25, 2011 2:18am
Quoting fxliveday
Hi,

What I have found in my 13 years of trading monies for my account and others is that when training new traders it is sometimes difficult to assess their talents on a demo account. The emotional aspect with real monies often changes once someone actually can say to them selves "Wow I made 25,000 today that is a new car, or wow I lost $2,000 this week that is my mortgage. We dont really assess damage or winnings from a demo account in the same way as a real account. The best way I have noticed among some of my Wall Street friends / Traders...
Take it as a game also good idea. Make for yourself goal not make a virtual profit, make a real Pips. When you take it like this, doesn't matter you have real, demo . . . pips are always real.
  • #17
  • Last Post: Mar 26, 2011 12:07am Mar 26, 2011 12:07am
- Keep a detailed trade journal

- Do EXACTLY the same as if you are trading with real money, i.e. with
the same Stop-Loss and Take-Profit targets as like in real trading

- Don't make excuses for the losses unless it can be explained away by
improvement in trading strategies.. Include ALL the profitable trades
together with the losses to get a realistic profit %

- Do a Worst-Case scenario to calculate the maximum draw-down that
can happen to your account

- Do NOT stop demo trading until you can rely on your trading strategy to trade completely
mechanically like a machine with absolutely no emotion, no "second thoughts", no hesitation and etc.
because if you still find yourself doubting yourself and hesitating or second guessing yourself with your
trading strategy in demo then your strategy is not ready for the real market
Make your losses in demo. Earn your profits live.
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