The purpose of demo is to practise and test skills or trading plans etc. Trading with real money it is totally different so that is why i believe there are some steps you need to follow! Demo practise, then trading with an amount you can afford and then get more serious.
When I started trading I was using the demo for a substantial amount of time. I remember very well my account manager from ironfx calling me and telling me that trading with a demo can have a reverse effect on me. I didn't believe him but when I went to the live account and I started risking my own money I felt a bit helpless. I was not sure what I was doing and I ended up losing some money. Basically my account manager was right. Trading in a demo environment does not allow you to make the correct money management decisions because you are not trading with real money. What I did was I traded with small amounts but real money so that I could improve my money management decisions and trading psychology.
The reason that people don't feel the risk is because they aren't losing their own money. You're pretty much emotion free when you're doing that because it's money you won't have to lose on yourself. Then you will start to take risks, and those will lead you to thinking you will be able to take them once you're actually doing it live again. That's just something that you don't want to worry about.
It's a psychology things when you feel no worries of losing some funds in demo account. You may train your trading psychology (incl. ego and emotion control) when you feel ready with your trading skills by starting a live account with some of your unused funds.
The risk is also present in demo , we not suffer from it. When you loose in demo there is no effect on your pocket. We feel free in demo that is why our trading is good too in demo accounts. We feel fresh no tension of loss , we know in next trading we can overcome on loss . In demo trader's psychology is totally different
Once you learn the technical aspects of the system that you are trading with you will need to trade for real. Nothing will be like the real thing and that is what an expert friend of mine at Delemont Capital told me and I fully agree
Start to train your psychology in live account with small capital (find broker that offers you small minimum deposit). You'll feel any kind of risk there. Good Luck...
In addition to all the other things you said, you need to remember that some market maker brokers manipulate accounts. Obviously they don't care about demo and your virtual profits there..
I would say that earlier i have done trades with a market maker but i would not like to name it. I had Huge slippages and requotes and the trades were not going to become profitable.
With such kind of trading restrictions in place i opted out and started to do ECN trading only with a new broker
By the way, i know some market maker's brokers who are fair and honest, and some that called themself "ECN STP" but practically are much worse. So being a market maker or a STP doesn't necessarily say it all. You should also check reputation, reviews, regulations, and check their demo and customer support.I would say that earlier i have done trades with a market maker but i would not like to name it. I had Huge slippages and requotes and the trades were not going to become profitable.
With such kind of trading restrictions in place i opted out and started to do ECN trading only with a new broker
I found less of market makers who are really honest. And yeah, you should check (if you're interested to them) them one by one...
I would say that if you are actually looking for a good income then it is always better to trade with the ECN Forex brokers and this is why i have already switched over to the ECN trading now
It is right that the demo account is essential to start with. But, it is also true that within a demo account, it doesn't feel like excitement, so there wouldn't make a pure perfection! So, all the things go with the Demo Account, seems like something "don't care" or "doesn't matter"!! It is the initial step and it controls the possible mistakes but within the Demo Account, I think everyone should take it as an action, or something serious instead of "Let's Fun"! What do you think?
Dawn, i have made some good progress using the Demo rading accounts
And that was 4 years back as i moved towards professional Forex trading turning from a salesman to a Forex trader. I have learned a lot using the Demo accounts and still i am making the use of them now
Hi Lawrence, I am really glad to meet you! Did you say 4 years! It's really a great tour. 4 years of learning and then using those experiences into the life! And I would like to say, this is the way where should go. You know, nowadays it is very case to find some people who are eager to learn after the grade and elementary. That's why they are losing and lost the faith... and what's next GIVE UP!!
Some of the people are learning from scratch also! They are rising and doing good! By the way, thanks for sharing! It gains motivation!
Some of the people are learning from scratch also! They are rising and doing good! By the way, thanks for sharing! It gains motivation!
Yes, i agree. it's less likely to find honest and of high quality market maker brokers
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