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Question about Demo Accounts

  • #1
  • First Post: Aug 22, 2006 12:21am Aug 22, 2006 12:21am
Do demo accounts have the same information as the real life markets corresponding to them, or is it just made up random scenerios?

Thanks
  • #2
  • Aug 22, 2006 12:34am Aug 22, 2006 12:34am
It is a live stream. Those are real prices, everything is real about it, except you lossing all your money... ^^;
  • #3
  • Aug 22, 2006 3:45am Aug 22, 2006 3:45am
Quoting radronOmega
Do demo accounts have the same information as the real life markets corresponding to them, or is it just made up random scenerios?

Thanks
Nathan is right!<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o></o>

In a demo account you can see the actual prices that are being practiced in real life markets.<o></o>

One cool exercise is to open different demo-accounts with different brokers and you can compare their prices and spreads. You'll find out that the prices are not always the same as there is no centralized price (there is no "real-price").<o></o>


Good luck 4 your trades!!<o></o>
  • #4
  • Aug 22, 2006 8:59am Aug 22, 2006 8:59am
Not sure how much of a Newbie you might be but just remember the following:

Demo-trading has very little (if any) psychological consequences when you lose 'demo-dollars'. You're not making or losing any money. It's like playing 'free' poker on-line, there is no sick feeling in your stomach when you lose $25,000 on one hand of Texas Hold'em. If you want a little taste of the psychological stomach pill and if you play cards or dice or Roullete, open an account with $100 on-line and get the feeling when you lose $100 of your own money.

If you have decided on a broker, demo trading is a good way to learn the platform that you will be trading from. Right click here or left click there, modifying orders, or saving templates. Study the way the quote feed works around news times, or session open times. Get the feel of the platform first before you go live. I've switched accounts a few times and have always taken the time to learn the platform before going live. A good 'excercise' is to call the broker to find out how fast, courteous, and 'user friendly' they are as well.

Good Trading To You
  • #5
  • Aug 22, 2006 9:07am Aug 22, 2006 9:07am
Quoting Palmer
Not sure how much of a Newbie you might be but just remember the following:

Demo-trading has very little (if any) psychological consequences when you lose 'demo-dollars'. You're not making or losing any money. It's like playing 'free' poker on-line, there is no sick feeling in your stomach when you lose $25,000 on one hand of Texas Hold'em. If you want a little taste of the psychological stomach pill and if you play cards or dice or Roullete, open an account with $100 on-line and get the feeling when you lose $100 of your own money.

If you have decided on a broker, demo trading is a good way to learn the platform that you will be trading from. Right click here or left click there, modifying orders, or saving templates. Study the way the quote feed works around news times, or session open times. Get the feel of the platform first before you go live. I've switched accounts a few times and have always taken the time to learn the platform before going live. A good 'excercise' is to call the broker to find out how fast, courteous, and 'user friendly' they are as well.

Good Trading To You
All true, but where is Mos Eisley Spaceport? lol..
  • #6
  • Aug 22, 2006 10:07am Aug 22, 2006 10:07am
Mos Eisley Spaceport:

It's one of the larger space-ports on Tatooine, sort of a desert planet. Great cantinas to hang out at! Lots of hot space chics too. They really dig Earth accents...I still haven't cleaned up my room....
  • #7
  • Aug 22, 2006 10:47am Aug 22, 2006 10:47am
Woooaah. Hang on there guys. While it is true that prices are the same, a demo account will not fully replicate a live environment. In a live environment, you may experience slippage, slow order execution, price spikes and another anomalies that will not necessarily occur on a demo account. If you're trading fast moving markets, a demo test of your strategy will give you a basic idea of how the strategy holds up, but, you might experience considerable slippage which causes your trade to be unprofitable in a live account.

So, keep those things in mind. Use a demo account to test your rules. Then use it to create habits of trading your rules. Then move to a small live account and deal with the psychological aspects of trading.

Regards,

stockwet
  • #8
  • Aug 22, 2006 11:17am Aug 22, 2006 11:17am
Quoting stockwet
Woooaah. Hang on there guys. While it is true that prices are the same, a demo account will not fully replicate a live environment. In a live environment, you may experience slippage, slow order execution, price spikes and another anomalies that will not necessarily occur on a demo account. If you're trading fast moving markets, a demo test of your strategy will give you a basic idea of how the strategy holds up, but, you might experience considerable slippage which causes your trade to be unprofitable in a live account.

So, keep those things in mind. Use a demo account to test your rules. Then use it to create habits of trading your rules. Then move to a small live account and deal with the psychological aspects of trading.

Regards,

stockwet
Hi....

Slippage is only an issue for people placing short term trades, right (eg. active daytraders) ? 'Cause if you are on a method like SIDUS, which requires to hold positions for longer time frames, a slippage of a few PIPs in the long run makes little difference....

I think slippage is an issue for people who trade news and what to get every PIP they can on momentum....

I could be wrong.....

Future
"Lunch ? Lunch Is For Wimps !"
  • #9
  • Last Post: Aug 23, 2006 9:56am Aug 23, 2006 9:56am
Even on the demo I experience anomalies. There was this one time that my order was never placed and just disapeared completely from the order managment. Was really weird. I have also had slippage occure during the demo, but in a proftiable way ^^; It slipped on my limit and closed 20 pips later so, bad that it did not do what I wanted, but got me a profit. I still rather have it do exactly what I want. But that is just an example of a good thing coming out of something bad.

I think I have had my share of anomalies on the demo. Hopefully when I go live they won't be more frequent!
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