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Is demo a step before real trading?

  • #521
  • Feb 23, 2020 9:35am Feb 23, 2020 9:35am
Quoting Goldflame
Of course, a demo account is an important step before real trading and should not be ignored.
I agree. One should trade on a demo, even if it's just for a little bit to learn the platform.
  • #522
  • Feb 24, 2020 11:42am Feb 24, 2020 11:42am
I fell asleep a couple of times on a demo account in a trade. Believe me lesson learned. I'm still in demo still learning.
  • #523
  • Feb 25, 2020 12:43am Feb 25, 2020 12:43am
Quoting rogerpro
I think mini or micro demo accounts can be considered as the viable option when you are in beginning stage of forex learning part as they expose you to the lowest risk possible.

True. As a trader i can say that demo account has really helped me in trading.
  • #524
  • Feb 26, 2020 10:01am Feb 26, 2020 10:01am
Me too. I am not even sure I would have started trading if I did not have access to a demo account at first.
  • #525
  • Feb 28, 2020 12:06am Feb 28, 2020 12:06am
Quoting Isra
No exactly, Demo is just like a training ground for the beginners, to show how the trading activities go on. The Demo account and Live account are never the same.
I agree with Isra.Demo makes you familiar with the platform. But real trading is much different from demo trading. There's much more to live trading than demo trading.
  • #526
  • Feb 28, 2020 9:12am Feb 28, 2020 9:12am
Demo is helpful, but not as helpful as using a Trading Simulator. And some traders recommend going live but being extremely conservative in how much you risk. Like learning the ropes while only using 0.01 lots, for example. I can't say I disagree with that.
Learn from your mistakes and march on.
  • #527
  • Mar 9, 2020 11:16pm Mar 9, 2020 11:16pm
demo is really a good platform for the traders who are particularly beginners. it supports traders to bring good knowledge and experience , but the main problem the knowledge we took from demo practically not works when trading a live account. same issue i have discuss so many times.
  • #528
  • Mar 14, 2020 9:35am Mar 14, 2020 9:35am
I think it can be useful to experienced traders too, especially when it comes to testing new strategies and ideas.
  • #529
  • Mar 17, 2020 10:37am Mar 17, 2020 10:37am
Demo and Real are same thing more or less, the bigger differences is between small deposit and big deposit since mental strength, emotions tech.. spool up, at least for rookies or untrained traders since good traders feel nothing at trading, at least they shouldn't, because if you see someone jumping out of excitement when winning, then run away because they will jump "somewhere" or "through" when things go south and they do, for every trader, at least "some times" and some just can't handle it.

Anyway, but for PURE "technical" view, the market is the same, unlike in POKER or some other plays. DEMO=REAL, trading wise... at least at a good broker...
If you can deliver ALPHA in DEMO, you could in REAL... If you have problem with "REAL" part... You can do COPY trading where you do DEMO (to be more "stable") and others can COPY with REAL money...

It is not a stepping stone, it is REAL MARKET... In fact, you can do "trading" on paper, same thing, for long-term at least.. If you have it, you have it...
If you don't, doesn't matter if you have DEMO, 1USD AUM or 1M USD...

That is the beauty of the (big) markets... Like fx, metals, energies... If you can make %, you can make % So if you can double 1USD, you can 1M (apart of additional pressure, but trading is the same). Tnx.
Can you afford to take that chance?
  • #530
  • Mar 22, 2020 11:48pm Mar 22, 2020 11:48pm
Yes, one should always start off with demo before trying real account. Demo and Real are same when it comes to reading the numbers, but the emotions are different very drastically. A beginner should always start off trying in demo.
  • #531
  • Mar 23, 2020 4:37am Mar 23, 2020 4:37am
I am profitable on a demo account and results are kinda consistent but the equity curve from my live account looks like a roller coaster. I think it is fair to say that if you are not consistent on a demo account you will not be consistent on a live account. But when you are doing ok on a demo, it does not mean that you will do ok on a live account.

Short version >> it is complicated.
  • #532
  • Mar 25, 2020 1:07pm Mar 25, 2020 1:07pm
We should trade a demo for a minimum of six months before moving to a real account. It is good to keep the amount and leverage same in the demo which we can afford to start on a real live account.
  • #533
  • Mar 27, 2020 5:32pm Mar 27, 2020 5:32pm
advantage of DEMO is to see that it can be done.
disadvantage is, that one wont feel the attachment to money
making money in JimB2468 trading room
  • #534
  • Mar 28, 2020 11:16am Mar 28, 2020 11:16am
In a training situation that is not necessarily a bad thing.
  • #535
  • Mar 30, 2020 6:55pm Mar 30, 2020 6:55pm
For me, demo trading is only as good as testing the terminal. Meaning, knowing about the tools and position sizes are only main part of Demo Trading. The most important part of learning Forex Trading is controlling the emotion, which is not possible to learn even a bit in DEMO Trading. So, i recommend every new traders to use at least a cent account for testing a strategy. Because the real testing comes with real money with real emotion.
  • #536
  • Mar 30, 2020 11:20pm Mar 30, 2020 11:20pm
Quoting Micro-Wave
I am profitable on a demo account and results are kinda consistent but the equity curve from my live account looks like a roller coaster. I think it is fair to say that if you are not consistent on a demo account you will not be consistent on a live account. But when you are doing ok on a demo, it does not mean that you will do ok on a live account. Short version >> it is complicated.
I wouldn't say it is complicated. It is how it is. The money you are using in demo are not real, so you do not get any psychological factors about how much money you are making or losing, as compared to the real account.
But yes, this is very true, consistent profit on a demo account will show that you are ready to do live account, but it doesn't mean that you will also make the consistent profit in live account.
  • #537
  • Mar 30, 2020 11:50pm Mar 30, 2020 11:50pm
Quoting physical
{quote} I wouldn't say it is complicated. It is how it is. The money you are using in demo are not real, so you do not get any psychological factors about how much money you are making or losing, as compared to the real account. But yes, this is very true, consistent profit on a demo account will show that you are ready to do live account, but it doesn't mean that you will also make the consistent profit in live account.
Yeah successful transition from demo to live depends on a trading system. Some of them are not too sensitive to transaction costs so you won't see the difference between them, others will need to be adjusted according to market conditions, like reduced trading during high volatility (when transaction costs increase).

That's why I tend to cut reliance on transaction costs in my trading systems, but it's not easy to do because most of the the edges (trading advantages) concentrate in short timeframes which require scalping. Take for example momentum.
  • #538
  • Apr 4, 2020 10:54am Apr 4, 2020 10:54am
That is a great analogy. In live trading there are no do overs if you lose a lot of money, like there are no do overs if you mess up when flying.
  • #539
  • Apr 6, 2020 5:20am Apr 6, 2020 5:20am
Quoting mlawson71
That is a great analogy. In live trading there are no do overs if you lose a lot of money, like there are no do overs if you mess up when flying.
Yes but it is more than simulation, it is real.. so exactly the same apart of the psychology (mental pressure of trading it with real money), but all else should be the same... I did however found some slight differences between demo and real in the past, chart wise. Also some brokers offer more tools for live but chart wise; price prediction, harvest... should be the same. So for interactive trading, should not be any significant difference if at all... Backtesting, however, is another story...
Can you afford to take that chance?
  • #540
  • Apr 6, 2020 11:31pm Apr 6, 2020 11:31pm
Quoting bottomhigh
{quote} Yeah successful transition from demo to live depends on a trading system. Some of them are not too sensitive to transaction costs so you won't see the difference between them, others will need to be adjusted according to market conditions, like reduced trading during high volatility (when transaction costs increase). That's why I tend to cut reliance on transaction costs in my trading systems, but it's not easy to do because most of the the edges (trading advantages) concentrate in short timeframes which require scalping. Take for example...
Very true on this. Scalping is very interesting process.
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