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Don't play games with demo accounts

  • #21
  • Aug 11, 2010 8:13am Aug 11, 2010 8:13am
Quoting pip_daddy
Psychology is EVERYTHING. It comes before MM because it makes the difference between good and bad MM. If you haven't learned that well.........best of luck. Feel free to just say I am wrong and carry on with whatever it is you do.

I think you're putting the horse before the cart

Psychology is a broad term - explain what you mean exactly - It is everything?

Answer me this... In psychological terms, how would you be affected going in to the market with no clue of what you were doing (or very limited experience) compared with having "practiced" for a whole year ?

Knowing your method, market and self is key - Once you know this the psychology will look after itself.
Time hides Nothing
  • #22
  • Aug 11, 2010 8:14am Aug 11, 2010 8:14am
I'll take a demo account seriously the day I can use that play money to pay my bills and buy food, until then, it's no substitute for trading real money.

There's an experiment involving locking up astronauts in a fake space station that are suppose to be on their way to Mars. The purpose of the experiment is to see if humans can handle being locked up together for the 6 month journey to Mars (or however long it takes.)

However, the experiment is doomed from the start simply because the astronauts know that they have the OPTION of getting out of the fake space ship. In a real mission to Mars no such option will exist, and on a FX Demo account, you definitely wont have the OPTION of just instantly creating a new live account or bank account.

A Demo account does miss about 80% of what trading is all about, which is the emotional pressure of having "skin in the game."

On the flip side, whether you are totally new to Forex or a seasoned trader who is trying out a new trading setup, your money would last longer being flushed down a toilet as opposed to just jumping in live.
Binary Options Trader
  • #23
  • Aug 11, 2010 8:17am Aug 11, 2010 8:17am
Quoting Yoda_Glenn
I'll take a demo account seriously the day I can use that play money to pay my bills and buy food, until then, it's no substitute for trading real money.

There's an experiment involving locking up astronauts in a fake space station that are suppose to be on their way to Mars. The purpose of the experiment is to see if humans can handle being locked up together for the 6 month journey to Mars (or however long it takes.)

However, the experiment is doomed from the start simply because the astronauts know that they have the OPTION of getting out...

If you can't take a demo account seriously quite simply, you aren't taking trading as a business seriously to begin with
Time hides Nothing
  • #24
  • Edited 9:13am Aug 11, 2010 8:41am | Edited 9:13am
Quoting pipmutt
Staying with your jogging for a minute....
Ok, so in your opinion it's better to jog to the curb and back and build up to a marathon rather than learn about jogging first before even stepping out on the pavement for real? Sure you could do that, and maybe get lucky, but you stand a better chance of success and survival if you first learn about diet, hydration, correct clothing, warm up and cool down exercises, heart rate, technique, safety etc etc etc. Jogging looks simple but to do it properly and avoid all sorts of potential problems it...
Once again, I don't disagree with what you are saying (as long as you stay away from the doctor analogy). I don't think you understand what I am saying. You are talking about High School. I am assuming we are finished high school and ready to enter the real world. High school can teach you math but that doesn't mean you are prepared to pay the bills, balance the check book, manage your money.
  • #25
  • Edited 9:10am Aug 11, 2010 8:46am | Edited 9:10am
Quoting CindyXXXX
If you can't take a demo account seriously quite simply, you aren't taking trading as a business seriously to begin with

Yea you are right. To add insult to injury I lost over 100pips today. I'm only up about 1200 pips on g/u and a measly 1000 on e/u. I wish it was a demo account so I could learn to take it more seriously before risking all that real money. So what should I do with this unrealized profit Cindy? I just can't seem to grasp how making all this money should be taken seriously.
  • #26
  • Aug 11, 2010 9:46am Aug 11, 2010 9:46am
Quote
I think the best asset a trader can have is learning ones own way and discovering things for themselves instead of blindly following illfounded presumptions of others. Myself included (!)
Yeah I agree, people like to give advices for everything but they don't understand it might have worked just for them, it may not work for other people. Personally I ignore many advices, because I know I have to learn for myself, specially "psychological" advices.

Being able to trade and win on demo shows discipline, and will give you'll be sure if your trading method works.
  • #27
  • Aug 11, 2010 10:02am Aug 11, 2010 10:02am
Quoting Jasus
Yeah I agree, people like to give advices for everything but they don't understand it might have worked just for them, it may not work for other people. Personally I ignore many advices, because I know I have to learn for myself, specially "psychological" advices.

Being able to trade and win on demo shows discipline, and will give you'll be sure if your trading method works.
You had me at "learn for myself". Then you went and blew it on your last sentence. Hey, in keeping with your first thought, I guess some people think demo works for them. For me it's a complete waste of time. To each his own.

Here is another piece of advice you can disagree with and ignore. Read "Trading in the Zone" by Mark Douglas.
  • #28
  • Aug 11, 2010 10:08am Aug 11, 2010 10:08am
Quoting moneymaker2
A demo account in currency trading is a great opportunity to learn your craft. It is real time and pretty much exactly like the real thing (unlike stock trading demos that have the required 20 minute minimum price delays). You learn how the broker platform works, you can set up your charts however you want and change them as needed. If you try something and it fails, you just move on until you find your own trading method.

Is trading with real money different that trading a demo?....well, that is a matter of opinion and how you trade on your...
Good post, my sentiments exactly.
  • #29
  • Aug 11, 2010 10:10am Aug 11, 2010 10:10am
Quoting pip_daddy

You are talking about High School.
What?
  • #30
  • Aug 11, 2010 10:15am Aug 11, 2010 10:15am
Quoting moneymaker2
A demo account in currency trading is a great opportunity to learn your craft. It is real time and pretty much exactly like the real thing (unlike stock trading demos that have the required 20 minute minimum price delays). You learn how the broker platform works, you can set up your charts however you want and change them as needed. If you try something and it fails, you just move on until you find your own trading method.

Is trading with real money different that trading a demo?....well, that is a matter of opinion and how you trade on your demo....
Ha.....tell that to all the people that made a ton of money on demo then went and blew their wad trading for real.
  • #31
  • Aug 11, 2010 10:15am Aug 11, 2010 10:15am
this is a troll thread. let it die. the op wanted everyone to pat him on the back and say "yes, you are right and devine. lead us to victory", but that didn't happen.

the horse is dead.
Congratulations ScalaFX for coming out of the closet!
  • #32
  • Aug 11, 2010 10:16am Aug 11, 2010 10:16am
Quoting pipmutt
What?
Sigh......never mind. Best of luck with whatever it is your doing.
  • #33
  • Aug 11, 2010 10:18am Aug 11, 2010 10:18am
Quoting nubcake
this is a troll thread. let it die. the op wanted everyone to pat him on the back and say "yes, you are right and devine. lead us to victory", but that didn't happen.

the horse is dead.
What a constructive contribution to the thread. Tell me more?
  • #34
  • Aug 11, 2010 11:20am Aug 11, 2010 11:20am
Quoting pip_daddy
Yea you are right. To add insult to injury I lost over 100pips today. I'm only up about 1200 pips on g/u and a measly 1000 on e/u. I wish it was a demo account so I could learn to take it more seriously before risking all that real money. So what should I do with this unrealized profit Cindy? I just can't seem to grasp how making all this money should be taken seriously.
You are an extraordinary trader, being able to make those kind of pips without ever using a demo or backtesting a strategy, but you must realize that everyone will not be a prodigy like you, so recommending they jump in live without knowing anything would be disasterous for most.

Congratulations on the pips...I assume you are trading full sized lots? (since anything less wouldn't be worth bragging about....)
  • #35
  • Aug 11, 2010 11:50am Aug 11, 2010 11:50am
Quoting nubcake

the horse is dead.
Let's flog it a bit more, just to make sure!
  • #36
  • Aug 11, 2010 11:54am Aug 11, 2010 11:54am
  •  SwissRaj
  • | Joined Aug 2010 | Status: (¯`·._.· the lonely trader ·._.·´¯) | 109 Posts
Quoting Hedginghog
trading a demo account needs to be undertaken with a clearly defined PURPOSE and LEARNING OBJECTIVES
I see demo trading as a tool. Properly used, it is useful.

An screwdriver does its work very well. It's an useful tool. Would you use it to shave your beard? Probably not.

Demo trading won't give you the real feel of putting your money at risk. We all know that.

I use demo for two purposes:

1.Learning the platform.
2.Discover new markets.

Exploring new markets is an interesting topic, but not very popular in forums.
Every person defends his market (i.e fx, nasdaq, ES...), and very few are willing to explore beyond.

Maybe that explains why so many traders fail. They're playing in the wrong playground.
Too lazy to study others markets to find one that fit their style/needs.

Success at trading is not for lazybones.
>>> psychology is more important than technicalities ^_^
  • #37
  • Aug 11, 2010 11:54am Aug 11, 2010 11:54am
Quoting pip_daddy

I lost over 100pips today.
Try demo trading for a while, and go jogging to let out some of that pent up frustration.
  • #38
  • Aug 11, 2010 12:35pm Aug 11, 2010 12:35pm
C'mon, people who start businesses would love to see how it will go before risking their money. That's what we do on demos.
If you suceed at demo account, you'll eventually suceed at real money, so losing some time in the demo didn't hurt you. If you fail at the demo, you'll probably fail too at real money, and the demo was really worth it because you won't risk your money now.
  • #39
  • Aug 11, 2010 2:02pm Aug 11, 2010 2:02pm
DEMO trading is an easy way screw up your Psyche.

Somewhere along the lines, traders have been mis-lead or mis-informed about DEMO trading. Nowhere does it states that demo trading will help a trader become profitable. There are signs that indicate demo's true purpose ... which is to educate a trader on the inter-workings of a specific trading platform. That is all demo trading is good for. In fact, most brokers set time limits on demo accounts because of that fact. Not to be used for analytics, not to be used for strategy testing.

Traders looking to test a strategy, needs to open an Oanda acct and throw $100 worth if disposable funds into the account and have at it. That is the only way for any traders to experience the full range of what it's like to trade, from technical, fundamental, and psychological stand point. Psychological is the big one most new traders don't think about. Traders using demo for analytics and reporting needs to, again , open an Oanda acct and throw $100 in it. Then and only then will you have accurate data feed to report from. It is a well know fact, demo acct feeds are not reliable nor correct and in most cases, delayed.
  • #40
  • Aug 11, 2010 2:25pm Aug 11, 2010 2:25pm
  •  SwissRaj
  • | Joined Aug 2010 | Status: (¯`·._.· the lonely trader ·._.·´¯) | 109 Posts
Quoting Jhig
demo's true purpose ... which is to educate a trader on the inter-workings of a specific trading platform. That is all demo trading is good for.
That's one important purpose. Unless you're crazy, you want to spend some time learning how to use the tool that later you'll use to work.

But I'm going to be a little stubborn here. The other use for demo accounts is exploring new markets, new niches.

Yeah, i know i know. I'm just the new kid on the block, so I only write nonsense

But this idea of finding your ideal market's niche comes from the Brett Steenbarger's book :
Enhancing Trader Performance: Proven Strategies From the Cutting Edge of Trading Psychology

Probably one of the two or three most useful books I have ever read on trading.
>>> psychology is more important than technicalities ^_^
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