Demo is just a tool to practice before trading and live account is where the real trading happens. I've been trading with Demo tool for a few months now and I'm still not confident enough to trade on live.
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Yes you are right. Demo is to test our system to see whether it works or not. If the system works what's the winning odds and risk and reward. Demo trading is needed to find out all these.
{quote} While I do promote using a micro account but certainly not as a substitute for a demo rather using it as the first real account. Demo is not a step anyone can afford to miss out on else they're in for a certain loss.
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Me too. Micro accounts do have their place, it's just not at the very beginning.
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Joined Jul 2020
|129 Posts
Emotion doesn't usually work in demo trading. When you trade with virtual money you have no doubts in your mind. And when you trade with real money, you may think that if it is real money, there will be a lot of problems. Remembering such thoughts means that your emotions are not working in the demo but the emotions are working in the real account. You need to increase your account balance consistently. If you do not follow the discipline, you may make a profit for 1 month, but at the end of the day, the loss you make will exceed the profit.
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Joined Dec 2015
|3,529 Posts
One learns other things when demo trading. Learning to control one's emotions is, obviously, very important, but learning actual trading is just as important.
Emotion doesn't usually work in demo trading. When you trade with virtual money you have no doubts in your mind. And when you trade with real money, you may think that if it is real money, there will be a lot of problems. Remembering such thoughts means that your emotions are not working in the demo but the emotions are working in the real account. You need to increase your account balance consistently. If you do not follow the discipline, you may make a profit for 1 month, but at the end of the day, the loss you make will exceed the profit.
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Learning to deal with emotions is not the primary purpose of demo trading rather it is to familiarise a trader with the practical aspect of trading. Demo is like a practice session for a sport and live account is participating in a tournament. Is the practice session the same as the tournament? No. Do you still need it to win the tournament? Yes.
{quote} Learning to deal with emotions is not the primary purpose of demo trading rather it is to familiarise a trader with the practical aspect of trading. Demo is like a practice session for a sport and live account is participating in a tournament. Is the practice session the same as the tournament? No. Do you still need it to win the tournament? Yes.
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Trader cannot learn about emotion in demo account. Only real trader feel emotion in trading.
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Joined Mar 2016
|578 Posts
For those who might not know, forex demo accounts are training accounts that you can make and practice trading. They do not use real money, and so there is absolutely no risk involved. You can use them to test out different trading strategies and get a feel of the market. Its not advisable to wate much time on demo account. The aim to use demo account is just to learn things and see how market works. Whats important is How well you trade in real account.
I think that demo trading will take more than 3 months. It is not enough to trade for a week or 2.
You need to hone your skills and do some serious analysis. To do this, you need to keep a trade diary and write down absolutely everything in it.
Even if you went up to 1,800,000, this does not mean that tomorrow you will not fall to 10,000.
If you find a successful strategy, test it for a few months.
I demo'd for 6 months. Near the end I realized I was becoming more cavalier with my position sizing and realized that papertrading no longer gave me the realistic experience needed to develop my trading. Now I have a small account, trading micro and nano lots! It's been a vastly different experience, even though it's just fractions of a penny. It's real money and I've never cared so much about a buck before!
Use a demo account when the strategy is not perfect, the demo account can achieve profit, and then use the real account to train the mentality
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you said right , there is a chance to build mature trading mentality but the main problem is when we try to apply this experience in a real account it works to fail , and this is really a disappointing issue for any level traders.
A good result that only says that you are capable of intelligent forecasting. When starting real trading, remember that now you are not in the sandbox, this is real money.
A demo account has its own importance. Sure, we can’t earn or lose money while demo trading which doesn’t let traders learn aspects like money management or risk management. Demo accounts also do not take into account the emotions. However, it is still necessary for every trader to practice on a demo account before going live so that they can hone their trading skills and avoid some most obvious trading mistakes through practice.
A demo account has its own importance. Sure, we can’t earn or lose money while demo trading which doesn’t let traders learn aspects like money management or risk management. Demo accounts also do not take into account the emotions. However, it is still necessary for every trader to practice on a demo account before going live so that they can hone their trading skills and avoid some most obvious trading mistakes through practice.
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there is no way to ignore the importance of demo account , but the result we see in demo account actually not works when trading in a real . so we got frustrated most of the time about demos result.
Experience from demo and real trading are vastly different from each other in terms of emotions you experience. Lack of confidence, inability to accept loss and close your position according SL you set or impatience that forces you to miss part of your gains by closing position early - you won't find anything of it on demo account.
Demo is completely different comparing to live account.
You don't have to deal with your emotions since the money isn' real lol
And most of the time, being GREEDY is what caused blowing up an account.
Demo is good to use when learning the trading software. Other than that, it is of no use. Trading with small amounts / lots is better for learning than spending months on demo.
