Is demo a step before real trading?

To trade on a demo and pretend it's real is like being a 15 year old girl fantasizing about what it's like to kiss a boy.

Having a comprehensive plan is a step before real trading.

You may skip the 'demo' part.

don't open a 1 million dollar demo account.... you will fool yourself.

As others say, there is a big difference between the psychological load on demo, and on live.

But if you got similar results on a tiny live account, and managed that for a few months without much drawdown, then your long term prospects would look good.

My recommendation is, do demo for a brief period, then start live but small. Don't be so hard on yourself if first time live does not go well. Be sure to analyze all mistakes, learn from them and zero in on what works. More emotions will get in the way, so observe yourself.

It's a necessary step for people who don't get "stuck" in the practice and study mode.

Some research for years and never take the plunge. If that's you: NO you don't need a demo.

i think any experienced trader will always suggest that new trader to start their forex trading by use demo account, because by doing demo trading new trader can learn about forex trading faster, they will not get any risk from it so they can focus to learn about forex trading. just make sure u get good experienced from demo account before u do ur real forex trading.

Moving from a demo account onto a small live account - rather than investing a lot of money immediately in a live account - is actually a great idea. That way you get used to dealing with trading with real money but the sums aren't large enough to make you anxious. I wish I had done that as a newbie.

try to fill your 1st live account with whats 1/10 of your future capital. So you can just add a 0 and feel the pain anyway... I have done this and was so happy about the winners and so sad about the loosers as it would be the big money

demo accounts are a good way of putting in the first trades and learn the mechanics of the client itself but for the feeling it is not really beneficial

Thank you for this info. Is there a right time to switch from demo to real? Should I have a certain winning percentage in demo before going real?

I tried to gain 30% on the demo but I would not recommend this to anybody...

Just play with the demo as long as it seems right to you. The "game" starts when you put your first $, £ or whatever on the line. Just take it as slowly as possible!!!!

You will loose probably all the money you invested anyway... believe me... I thought also: "It will not happen to me..."

And yet it did... I am sure there are a lot of others here which had the same chronologiecal approach...

I do not know how much money you are placing in the 1st live account but when you start at the beginning (first year) think about the following:

Opening this live account is the same as if you put your money in a bucket, spill kerosine over it and burn everything to ashes...

THAT IS NO JOKE...

Demo is a good way to start learning FX trading at zero cost.
What other business offer such great start? Nope.

So the answer to you question is YES.

if u think that u already good enough skill by use demo account, then u can start ur real forex trading but first u should start ur real forex trading by use small lot, although u just get small profit but u can minimize ur loss, dont rush ur forex trading just keep calm and make sure u can make profit again and again as constant as u can, and u will getting better and better at ur forex trading.

I plan on using the demo for at least 3 months. I've only been using it for 1 day myself and already addicted to it lol

@nobody in particular:

 To whatever extent you believe that strategy is less important than psychology, you'll likely see demo as a waste of time.
 If the data on your br0ker's demo server is inaccurate, or it doesn't factor in costs or slippage correctly, then demo is definitely useless.
 If you get bored with demo trading and fail to apply the strategy consistently, then demo is obviously pointless.

But if none of the above apply, and you want to test a strategy objectively, without the results being distorted by emotional decision making, then demo might just be THE answer.

a demo account is an account that is important for traders. for a newbie it is advisable to trade with a demo account first. In the demo account we will get a good trading skills. we can learn to trade well in a demo account and we can learn to use mt4. For that, the demo account shall be used when the first trading forex

Demo account is needed to know your way around the system or i would say the "living system"...It helps you to get familiar with the forex jargon, test some strategy, understand the dynamics of market, news, opening/closing sessions, EA, indis, indicators etc...It is a must i would say. That's your first step.

Remember on demo account, you have virtually access to unlimited funds which might give you a false indication of how easy it is to trade or make money...That virtual fund is not available to you once you are LIVE. It makes a big difference.

I suggest your start demo with limited resources...say $250 or at least what you would put to start a LIVE account.

What demo would never ever give you is the mental shift experience between trading "virtual money" and "real/own money", it is just not the same. Therefore, once finished with demo account, i would start a real LIVE account with limited funds. Funds that you could spare. And as you get more proficient, you can add more funds.

As you increase the fund, you will face different mental/psychological challenges....BE AWARE.

Always ask yourself, why such or such emotions have come out...dig deep.

Hope it helps!!!

a demo account is very beneficial for us because with a demo account that will allow us to improve the skills of trading well, and therefore we have to use demo account properly. in the demo account we can learn a trade, so that we will have a good experience of trading

I have met a lot of traders, who had traded profitably on demo accounts, but had losses on real ones. So yep, demo is good for training, but it's not the same as a real account.

That is an awesome metaphore.


On topic:
Demo accounts are good for getting familiarized with the platform, but without the fear of losing actual money and the sting of actually losing it it can not teach you how to handle your emotions. And emotions will be your worst enemy as a newbie.