Demo Forex VS Real Forex

its a complicated issue actually , sometimes i feel , there is no need to trade in demo , because we got nothing from here , on the other hand , i have never found at any trader who already successful in here without trading in demo.

have you trade in demo when was a new Forex trader ?

I think the majority of traders do that. It's not a good idea to begin with real money, even if it's a micro account.

Right! why to loose money while learning on live account when you can trade on demo with the exact conditions.

That's pretty common. The reason is simple we put heavy pressure or emotions in live account which leads to failure in live. People need to remember that it requires emotionless to trade like a demo. It's pretty hard but with practice, nothing can stop you.

No healthy human being is completely emotionless and I don't think we should strive to be, but we definitely need to focus on always remaining in control of ourselves and not allowing emotions to inform our decisions when we trade.

controlling emotions is a big thing , need to pass a long time with real experience and regular practice, otherwise no way to avoid emotions when trading.

Do you have any concrete advice how to do that? How do you manage?

Nonsense. It took a while for me to figure it out, but it's easy and quick to achieve.

Trade Size
Reduce your trade size by 50%, or even 25%. The smaller the trades you have on, the lower the risk and the less concerned you'll be about it going against you. You'll also be less excited about when it's in profit, so it helps to just focus on the pips you're generating, rather than the ££'s.

Once you're able to feel comfortable, even to the point of being a bit bored by it, then mark that as your low-end baseline.

From that point, over the coming days/weeks, moderately increase the trade size. Do that regularly, and if you ever start to feel much emotion about your trades, drop the trade size (and even close off a portion of the trades you have on). You'll find that the pressure starts to ease off almost immediately.

Now review the trade sizes you're using, the average trading range for the pair(s) you're looking at and your account size. You can now measure your own emotional/risk level based on how you feel about the trades (both when in profit and when in the red/nearing your potential close point).

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Once the risk is reduced to a level that you hardly notice, you'll find it far, far easier to concentrate on the price movement, trends, indicators, etc. All that matters is tracking how/when you get into trades, tracking the movement and managing the exit points (profit/pain). That's it.

I've never been emotional about having a single,small trade on (1 or 0.01 - however you view it). If anything, it can tend to be a bit boring (along with leaving trades on while there's a bit of a trend on).


Trade Higher TF/Trade Less Often
Increase the TF, meaning it takes longer to fill the bars and more time between trades. More time to relax (again - to the point of being bored) and just watch the potential entry/exit signals develop.


Let Trades Breath/Move
Put a trade on and watch it run.

Let it work toward your R:R value/TP level...and then watch what it does. Go ahead and bump up your SL to BE..then higher as the trade moves up. Move it up a pip a day, or a pip an hour, or even per minute (at 5-15 minute intervals). You choose. The less often, the more time you give for the trade to develop (or to move back). Your trade size should be so low, the gain/loss of the "potential" profit should be minimal, so it shouldn't matter either way at this point.

Eventually, at some point, either you'll move the SL up to where the price movement will take you out. Guess what? I'll bet you'll earn a fair bit more on those than you would have with some arbitrarily low 'calculated' TP.

Yes, there will also be plenty of trades that you lose out on your upper 20-40% pips from the trade. So what? Given that so many people expect to grab 10-30 pips in trades, the few times the trade rolls up into the 100+ range (or even 400+) will make you grin. I promise. :-) Those are the 'real' trades. Those are the ones that put the real pips in the bag and the ££'s in your account. The other trades that move up and slide back down with a low profit are just...not as interesting. Still good.

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Like with fishing, you can spend all day catching small to medium fish, but the one you talk about is the one big hit/fight that you either nearly landed or were able to bring home. Trade like a easy, calm day fishing and keep your lines in the water, waiting for the big fish.

When I asked that question I wasn't expecting such a generous reply, thank you so much for taking the time and the effort to write this. I will heed your advice.

Yes mate, I really appreciate your approach; in addition, I always try to learn from my live trading mistakes! In this case, I use my notebook.

Writing down your mistakes is a great idea, you can always go back and check whether you've done this before!

we can learn from many thing in Fx trading and self learning is best from all approaches, when we make mistake , it is more appropriate not to ensure same mistake again , otherwise there is no way to overcome from loss.

The spreads and price feeds are the same in a demo as well as live account. However, the execution of the order is different because, in the demo account, the execution is done by the server so it is instant and the execution of an order in a live account is done by LPs, banks or market makers so it takes a bit longer than the demo account. The execution of pure ECN brokers is better than market markers because they provide the best market price available at that moment and the market makers execute the order by re-quoting the prices in their favor which leads to the loss to traders and that is how the market makers make money.

got so many fine lines , thanks Mate for your nice post.

Your strategy sounds really worth that loss in the beginning. Congrats! Coming back to your question regarding demo and live. According to my opinion, Demo and Live generally promote same spreads and price feeds provided your broker is not a scam!
However, there is a definitely a difference when it comes to the execution time. On the Demo side, the execution is fast as the trades are placed in a virtual market where actually liquidity is not considered. On the contrary, in the live account trades are placed as per the market execution. It can comparatively be a little delayed that the demo execution.
But, in the end it’s all about the broker you are working with. I hope my answer served your query well.

Demo account are for those who wanted to check the broker's processes without investing any money with them, because they are more or less very similar with the live trading accounts. From learning point of view, demo are always helpful in learning forex processes more easily than any other learning resources.

Can I try my skills with virtual money there?

demo trading increase trading skill if you trade seriously but most of the time most of the beginners trade here at random and got nothing from here , they trading life become hell when trading in a live, so i prefer demo account for all time to become a minimum knowledgeable trader.

sometimes i feel live trading is more appropriate than a demo account, minimum for become a knowledgeable trader , but this can beginners emotional and greedy , problem is here.