Maybe now and forever, forex trading is always involved risk in trading, and risk in forex is any trader they have possibility to losing money, demo account is important because as trader will learn and pracice to implemented strategy trading and also system trading, but demo account can't giving lesson about psycholoy trading.The help and learning that we get with the use of the Demo accounts will make us better as a Forex trader one day and the main thing that we should always remember is that trading will always remain risky
Why demo performance is often better than live performance?
- Thread starter Rambo35
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Yes, it is a fact that we do get such types of trades in which we can loose our trading funds at any given time. The best recourse for us is to make sure that we are limiting our trading and only doing such trades that can give us a good and reliable income
Yes it's good if we can only trade on such kinds market condition which will giving us easier profit, but sometime also hard to analyze the trend market which giving good potential profit easily, forex market sometime move unpredictable, and to learn of kinds market condition that giving easiness to catch profit required good experience.Yes, it is a fact that we do get such types of trades in which we can loose our trading funds at any given time. The best recourse for us is to make sure that we are limiting our trading and only doing such trades that can give us a good and reliable income
I have seen that the trends in the markets are not consistent and we have to think about doing our trading in such a manner that the profits start coming to us as soon as possible
Maybe if any full time trader, they can monitoring the market with more opportunty because they can spent more time to the market, but also not always although as full time trader then will spent time whole day, but they can look on good session market like as london session market which often high volatile market.
Hi All,
In my view before going on live environment, i think its important to have an experience with demo account first. Demo is for learning without facing any actual risk. even if you have losses your strategy does not work in any case, you can retry it, you dont face any risk see where you made the mistake back test your strategies to see the results so in my view before going on live practice on demo first
In my view before going on live environment, i think its important to have an experience with demo account first. Demo is for learning without facing any actual risk. even if you have losses your strategy does not work in any case, you can retry it, you dont face any risk see where you made the mistake back test your strategies to see the results so in my view before going on live practice on demo first
Yes of course learn and practice in demo account is very much important as early preparation, many beginner trader get fail in forex business, if beginner they rush in trading without preparation in demo account, hence will facing many difficulties and almost beginner fail if only relying with lucky, practice in demo account is essential for beginner
It's very simple, demo trading is virtual, orders are not submitted to markets, it means you won't get slipped, all stops will be exact! If you trade direct to markets, then the time it takes to execute trades to the market usually means that the price has passed and no longer available, and that is slippage.
If you're unlucky and your broker is a dealing desk (market maker) you will trade at prices they decide, or the dealing desk will have "last look" and delay your order fill and the price has gone.
It means that demo will never be the same as real trading regardless of broker model.
Demo is good for checking spreads and the general checking of your strategy, nothing more.
Its because you are paying less money in accouns to the free account hence you act carefree and believe the profits that's psychology.
Well, particularly for checking spreads demo is useless as its smallest spreads available on the market, it doesn't take into account volatility, low liquidity etc, volume of your order.
Its better to use live account for that purpose
LIve account usually will giving real psychology lesson, this is very important to develop good psychology trading, because if only using demo account it will can't develop better psychology because only use virtual money which usualy any trader will free from emotion pressure.
Indeed usually treat virtual money will never feeling fear to loss in trading and usually initial capital in demo start with huge capital and this is also help much during trading to withstand price movement, but usually trading in real will full with emotion pressure, fear losing money, doubt, and over confident sometime messed up trading plan.
When we are actually doing Demo trading then a time will come when we will know which trade is best suited for us and we are able to do that type of trading in the Real trading accounts
Demo account is the master place to acquire most powerful basic fundamental knowledge that is very supportive to continue a live trading in a proper way for the newcomers. but practically we the traders who are newcomers don’t believe the importance of this trading place at all. in my trading career, I use all my trading techniques first of all in demo trading see the performance how it works.
the pressure not to lose money can be a greater factor which affect your performance in real life. i have experienced it that while using demo you dont need to fear about what would be the result of your trade and that's why you ll trade without worries.
Sometimes; it’s true! The reason is; a number of traders haven’t any fears during the demo; they struggle a lot because fears & greed issue.
If you are going to use a demo account then make it small one with 10,000 USD or less. Use the appropriate leverage 50:1. Trade only 1% or less of your balance per trade. Treat it, if you can, like its real money. Pay attention to your trading plan, and only take trades that give you a signal. But nothing beats a real account when it comes to experiencing risk. It will show you your psychological conditioning and where you need work.
Because it's like trial version of what you can expect, but brokers make their demo accounts sounds to good to be true and results are differ very much from real account. I think there should be some more punishment for things like that really. It's just make it all worse.
Demo is for making incompetent people believe , that these incompetents are very clever traders. It is a gimmick by metaquotes to give fills on every trade , often without using any spreads.
It is called making dumb people feel , they are trading in reality.If they can make stupid believe , they are clever , the stupid will start trading , then lose real money on live accounts.
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