Demo Contests - Big Newbie Mistake

[Rambo35]

I think demo contests are one of the biggest mistakes new traders can make. I know plenty have flocked to the forex market by clicking on banners and approaching it with the wrong mindset and insufficient trading capital.

Plenty of brokers cater to that and offer demo contests where traders can win free money which will be deposited into their trading accounts. This often comes with so many rules and guidelines that most will never fulfill them.

That is not even the worst part, the only way to win a contest is to ignore things like risk management and basically you go all-in all the time and hope you get it right which promotes the type of trading mentality which is destined for failure.

That's why I think demo contests are terrible for new traders as they learn the wrong things and get their hopes up that real trading is similar to that. I think all traders should stay away from forex demo contests.

What do you guys think?

 

[Enivid]

I think demo contests are a great tool (and for many, the only one) for some of the beginning traders to build their first real account capital.

 

[Rambo35]

I think demo contests are a great tool (and for many, the only one) for some of the beginning traders to build their first real account capital.

We can agree to disagree on that. While I understand where you are coming from with your statement in regard to building capital I think the way you have to approach those contests is counter-productive especially for new traders as often they will apply a similar approach to their real account.

 

[Master Forex IB]

No I do not agree when a trader takes part in demo contest he knows he is not using actual amout so he can not apply these resultss on real so he can just make good practice over here .Demo contest are good to work in manages way in competition .He willbecome experienced and will show his bestin amaking results.

 

[Agnnis bingamin]

I would say demo account is good to have as it help us to enhance our knowledge we learn more and more in deep try to better trade.