I don't think that I've seen a post about these, and I think they are so important that I'm going to make a post about them. I know that a lot of people lose money because obviously they are trading. It's not something that everyone is good at, and it's something that you have to learn. That's why demo accounts are so great. Demo Forex account is essentially a virtual trading platform where you can buy and sell various currencies without risking real money. In providing this service, Forex brokers replicate live online Forex trading within a test environment where no trade actually gets sent to the market. There is a slight caveat to this. In a true ECN market environment, trades will not necessarily be executed at the requested price you see in the electronic trading platform. This is because there is always a time lag between the time you trigger your trade, and the moment it actually reaches the bank on the other side of your Forex trade. In live trading, this is referred to as slippage, which may be favorable to you or go against you. This is fully expected, and under normal market conditions, won't be noticeable. Over the long-term, and when trading with a true ECN broker, slippage is likely to be in your favor and may help you accumulate substantial savings.
Demo Accounts
- Thread starter Danielle Davidson
- Start date
- Watchers 19
Demo is one of the best way of learning Forex; but using the demo only for 1 month-2months is valueless. Learning is a long term procedure here; no one can build a good trading skill instantly.
Do you know any successful trader by using the demo only 4-5 months? I am sure; you are not! Because, learning is a long term process here and there is nothing like shortcut way of Forex learning.
Yes, absolutely, also I assume people are going for making this all part time and that's it. I do not understant it trully but with that regimen you really need to get going in full with something like year or so to be at least on some level for live account with real money.
Demo is a necessary when you are new. Demo trading is important if you know how to use it. No matter you are new or old traders. If you are old traders you must know with a single strategy you can not make profit all the time. We need to change according to the market condition. To test your strategy demo account is the best place. You can't lose money by testing on live account.
Demo trading account is the ultimate learning tool where he can get acquaintance with the fundamental aspects of trading by getting the chances of trading artificial money as like as any real account. In that way every foreign currency exchange trader must try to put his whole consideration on how he can acquire knowledge and get basic ideas of trading with demo trading account at the initial phase of his trading journey.
This is quite good article about demo accounts. I think that these accounts are great tool for every trader. They have several purposes, so traders do not need to use them only in the beginning but also later, as professional traders. You can use them for various testing purposes
It’s true; demo is not only for the new traders; nowadays I have been using the demo to improve my own trading skill!
Sorry but I can argue with you. First cuz you cannot learn forex in 1 or 2 months. It`s a long time story. And second cuz even the most trained and experienced traders are using demos to test their new strategies. So demo accounts are something permanent used.
Demo accounts have a valuable place in learning, and testing, but it must be noted that emotions of trading real money / live account cannot be practiced on a demo account and is often a factor in the difference in trading results from demo to live. Do not neglect trading psychology in your learning and progress to a micro account when ready to overcome this before using a larger account.
yes demos are great for learning but like you say it doesnt necessarily prepare you for the emotions you will feel when that money is real, i prefer to learn on a small live account, i probably could of saved my self the losses but i think they are lessons rather than losses
I remember trading a demo account for a year, was a whole different ball game when I raised the capital to start trading seriously. Nothing quite like seeing your savings going into the red to rile up the emotions. I mainly use demo accounts now for testing strategies or brokers but never as accurate as a real account.
You`re using demos right and the psychology factor can be beat if you`re risking only this which you can afford to lose.
Similar threads
