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Difference between Demo and Live

  • #21
  • Jul 1, 2012 10:22pm Jul 1, 2012 10:22pm
Quoting GreenAvenue
I agree, I'm relatively new to the game and demo allows me to learn the rules first before I go live. I realize that live is going to be a new experience.
Believe me, many traders have jumped ship from demo to live way too early. So stick with the demo for a while, learn the ropes and ONCE you have decided upon a strategy, move on to live account. Remember, patience is the key to success in this market.
  • #22
  • Jul 3, 2012 12:20pm Jul 3, 2012 12:20pm
I think you should just use demo money but every time you go bust, you should punish yourself by paying someone to punch you in the face.
  • #23
  • Jul 3, 2012 9:10pm Jul 3, 2012 9:10pm
If you can't make fake money on a demo account, there is no reason to open a live one... and just because you can make fake money on a demo is no reason to believe you can make real money on a live one.

Emotions are a fickle beast and they effect everyone... it's only natural for you to think you are immune to these deficiencies. It's possible to over come, but only after alot of work.
  • #24
  • Jul 4, 2012 4:58pm Jul 4, 2012 4:58pm
I believe demo is a MUST. Yes, of course with live account your emotions and excitement will double, but just with demo you can really test your strategy.
Now, consider this:
- If your strategy worked on a demo for, say, 3 monthes, and you hadn't "reset" the account - there is a high chance it will work on a live account.
- If it's not - no chance it will work on a live account, so it just saved you from bowing up a very real money...
  • #25
  • Jul 16, 2012 11:59am Jul 16, 2012 11:59am
Quoting mua
Which one is better to learn forex?

Lots of people overemphasize the importance of demo trading. Demo account is like ABCD..in forex and to orient you to the trading terminal software and forex glossaries.

In my 6 months of live experience I find, in retrospect, demo is useless.

Demo will never give you the thrill, concentration, motivation to do best and keep your account viable. And also demo is like dissection of a dead body ( with no reflex). Only Live trading with Micro/Nano account will give you the opportunity to learn real forex.

1....
I started trading as a student without good money background with only 50 bucks .. i have never trade demo at begining at it was the best trading school , which i had .. during 3 months long holiday i trade 16 hours a day, it was great! My opinion is clear, save some money, which is enought for you and start trade real. In real trading you will feel real results, real stress, real profits and real losses.
  • #26
  • Edited 11:48am Jul 28, 2012 11:15am | Edited 11:48am
  •  Atom
  • | Joined Jul 2010 | Status: An atom..no more..probably less! | 44 Posts
My journey:

1) First six months with demo account.
2) After achieving some stability (one month with breakeven results),
opened a micro live account.
3) Blew up four micro accounts so far (3 years).

The Good News!!... over the last three months I had a 2% profit. Moneywise, It is nothing, but it is the first profitalbe Three-Months period I end up being profitable. It definetly means a progress and improvement. I will move to mini account after being consistently profitable (more than 15% on yearly basis) for at least 15 months, and will be on two stages (bigger account micro, then mini..hopefully)

The other Good news is that if I have to restart it all over again, I will do the same (1st 6 months demo, then micro accounts of which the first few will most probably be blown up).

Last note. I started trading with 1:200 leverage, and now I trade with 1:10. I asked my broker to fix leverage on my account as such.
  • #27
  • Jul 31, 2012 1:59pm Jul 31, 2012 1:59pm
I really think that for learning forex trading is the best way trade real account. I personally jumped into real account and it was best school of forex. But of course, first deposit should be small, until you will be sure, that your trading style is enought strong to trade bigger positions.

Personally prefer Money Management with higher risk, because you can deposit smaller ammount and i feel more comfortable with it.

It is not about absolute deposite size, because money are really relative, for millionaire is 50 000 $ deposit same like for average worker 500 $ deposit.

Biggest difference, between demo trading and real trading is, that in real trading you feel fear, pain and all psychical bad stuff ... btw, when i was with my first account in lost i feel very terrible, but it was best motivation, because peoples strongest feeling is angry.

In first two months i have break up 2 trading accounts, but i didnt give up and after another 12 months of real trading i started to be profitable .. i have started with 0.01 lot positions and in 12 months i have traded consistantly 5 - 10 lots positions.
  • #28
  • Aug 1, 2012 3:34am Aug 1, 2012 3:34am
Hello fellow traders,

I'm new to forex trading and I'm new to this forum so I can't start a new thread. But this thread is maybe the most relevant to my question.

I'm currently trying different fx brokers to see which suits me best. Each has their own version of Meta Trader 4 which I believe to be the best platform to my limited knowledge.

So I opened an account with MRC Market, FXOpen, and Oanda just to download the MT4 program + the live data.

Straight away I notice that there is a significant difference in terms price quote on all 3 programs, even though all are using the same platform. I know it isn't that big considering we're using 5 decimal points, but this in turn affects all my indicators. I have different readings from all of them.

Is this a normal phenomenon? That each fx broker quote their own prices differently? Thanks guys. I'm looking forward to contribute to this forum.

Ishtana
  • #29
  • Aug 13, 2012 5:58pm Aug 13, 2012 5:58pm
I think that going demo is better than starting with a hyper-small account and here's why...

Money Management - it's my belief at this point that your money management plan is the most important factor in your trading. It far outstrips the actually strategy you use as there are dozen of strategies that work and you just have to find one that meshes with how you want to trade and with your schedule. Money management, however, is universal across all systems. The only thing that comes close is having a 2:1 R/R ratio on a system that has 38% real wins or better. Other than that, it's money management.

I'm looking to trade to win. Period. That means I'm going to be funding a live account with more than $1,000. That means I need to know if my money management schema is going to match up to my system in such a way that when (not if) I hit a losing streak, it keeps the ship afloat on a $1,000 account.

The money management program I'm using is a stairstep setup instead of a hard "2% of account" or "1% of account" type of thing. There are no steps for $100, $200, or $500 because being successful at those amounts is not going to really change one's life in the timeframe that I'm hoping to see benefits. That means I can't test the most important part of the whole trading schin-dig by using nano accounts. I can open a demo with the same amount of funds that I'm going to risk in a live account and go to town. That's my plan and I'm sticking to it.
  • #30
  • Aug 13, 2012 11:50pm Aug 13, 2012 11:50pm
Quoting FXAssassin
I think that going demo is better than starting with a hyper-small account and here's why...

Money Management - it's my belief at this point that your money management plan is the most important factor in your trading. It far outstrips the actually strategy you use as there are dozen of strategies that work and you just have to find one that meshes with how you want to trade and with your schedule. Money management, however, is universal across all systems. The only thing that comes close is having a 2:1 R/R ratio on a system that has 38%...
Yes, this post says it all and even better than I could have, nice.
  • #31
  • Aug 14, 2012 12:07pm Aug 14, 2012 12:07pm
Newbie thoughts & experience:

Demo is totally different from live account (fore at least).

I do not take demo too seriously. The funny thing is that I am in profit in demo most of the time and in a live account I am always losing.

When I take it easy I win. I am not saying that i am not concentrated in demo mode or that i am careless. It's just I have a different mentality and it seems to work better.


When I lose in Live account things start to get ugly, when I am in demo i do not care, and since I do not have any weight on my shoulders I tend to make better decisions without involving emotions, then I win more.
  • #32
  • Aug 14, 2012 4:05pm Aug 14, 2012 4:05pm
Nice, this is good thinking. Still you can do the forward testing using a small real account; you will notice sometimes execution will be slower, wider spreads might remain in effect longer than in demo etc etc. All the subtleties, little piranhas that bite chunks out of your account.

Quoting FXAssassin
That means I'm going to be funding a live account with more than $1,000. That means I need to know if my money management schema is going to match up to my system in such a way that when (not if) I hit a losing streak, it keeps the ship afloat on a $1,000 account.
forget about tomorrow, just steal away into the night
  • #33
  • Aug 17, 2012 6:31pm Aug 17, 2012 6:31pm
I have a 5k demo account i have managed to trade down to 2k in the last 2 months of learning.
Once it is back to the original 5k i will open a live account.

So I am all for demo accounts for noobs.
  • #34
  • Aug 20, 2012 10:05am Aug 20, 2012 10:05am
Quoting xtrader101
Demo = Video game. You die, but you have many lives and you can start over again without losing anything.

Live = Its like deployed in Kandahar. You make a mistake and you will loss your legs, limbs or your precious life.

What I prefer = Demo for a week or two then fund your account with $100 (I suggest Oanda as you can trade $1 trade size or any size for that matter).

If you loss the initial deposit, reload it with $100 until you can double that amount, in which time you can increase it with more funds you can afford to loss.

Cheers...
Good metaphor, they are truly different, demo can be fun and live is the real war.
  • #35
  • Oct 3, 2012 10:16am Oct 3, 2012 10:16am
trading real money is usually more fun ) but not cool when you lose
but yeah there is a difference and if the broker is not really good sometimes they make the demo performance looking so well that way they attract you to open an account with them but in truth they aint good at all )
  • #36
  • Oct 3, 2012 3:43pm Oct 3, 2012 3:43pm
The demo account is definitely helpful in getting the feel for the forex trading. You can learn a lot, especially from your mistakes. However, there is no element of emotion or pressure while trading on demo accounts. It can be a good thing or bad thing because we do need to take emotion out of trading and exercise discipline in order to be successful. But at the same time, the lack of pressure can make you take the trading less seriously and lose your focus.

In terms of performance, your success on a demo account doesn't necessarily translate into success on a live account because: 1. Demo accounts do not take slippage into account 2. The pressure is off and you could very well be in a different mindset when trading with a demo account.

So, I recommend trading on a demo account for a few months for learning purposes, and then trading on a live account with a small amount of money that you can afford to lose, just to see the difference between the two accounts and to see if you're really ready to trade for real money.
  • #37
  • Oct 4, 2012 4:42am Oct 4, 2012 4:42am
Hello! Could anybody tell is it possible to earn money on demo account. And how to do it? I want to clarify it for me. Just I'm afraid to loose money from very beginning on live account. TY
  • #38
  • Oct 4, 2012 5:47am Oct 4, 2012 5:47am
Quoting mua
Which one is better to learn forex?

Lots of people overemphasize the importance of demo trading. Demo account is like ABCD..in forex and to orient you to the trading terminal software and forex glossaries.

In my 6 months of live experience I find, in retrospect, demo is useless.

Demo will never give you the thrill, concentration, motivation to do best and keep your account viable. And also demo is like dissection of a dead body ( with no reflex). Only Live trading with Micro/Nano account will give you the opportunity to learn real forex.

1....
I think Demo trading is the most important part of forex trading for beginners. No one can ignore demo trading. You must have to practice in demo before start live trading. If you have emotion problem then after few months practice you can start trading at micro account.
Be patient or leave Forex Trading.
  • #39
  • Jun 9, 2017 3:41am Jun 9, 2017 3:41am
Demo trading for me is the best way to learn in Forex. In Demo, you can test your trading plan and enhance your trading skills. It can allow traders to experiment with a wide range of financial products, such as options, futures, Forex and other derivatives. It also allows the investors to become familiar with the available tools, it provides a way to test different trading strategies, such as carry trades in Forex. Must use Demo first to learn before going in to live trading so that when you go on live, you can earn better profits.
Sweet Princess, ForexMart
  • #40
  • Jun 12, 2017 8:41am Jun 12, 2017 8:41am
Quoting SweetPrinces
Demo trading for me is the best way to learn in Forex. In Demo, you can test your trading plan and enhance your trading skills. It can allow traders to experiment with a wide range of financial products, such as options, futures, Forex and other derivatives. It also allows the investors to become familiar with the available tools, it provides a way to test different trading strategies, such as carry trades in Forex. Must use Demo first to learn before going in to live trading so that when you go on live, you can earn better profits.
even better then demo trading is trading in real account with extrem small money and only most possible small positions. (for example cent accounts).
so you learn the differences same time between demo account and real accounts. and you dont risk money, only so less that anyone can afford it. but you dont lose zero, so its not unimportant and not so unreal.
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