Difference between Demo account and Demo Contest
- Thread starter SweetPrincess
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Account is an account, contest is a competition.
What else can be said here? Maybe if a person can't get the difference between these two ones, maybe he's not smart enough not only for forex, but for any business 😀
What else can be said here? Maybe if a person can't get the difference between these two ones, maybe he's not smart enough not only for forex, but for any business 😀
The problem with competitions is that they always seem to be based on who makes the biggest profit within a given time frame. No consideration is given to "good" management, like minimising drawdown, capital risk, and stop-loss management. In my opinion, winners of these competitions are just plain lucky!
Demo is the 1st stage for novice Forex trader, and demo contest is the next! Even, novice traders can skip this stage, maximum traders do so! They start their live trading after completing their demo, but trading contest is a good option for judging trading skill!
This is so true! There is no relationship between a demo account for learning, and a demo account "gambling" contest. In fact, these contests do more harm than good because they inherently encourage unacceptable risk taking. The focus is on who makes the most profit, and therefore encourage risky over-trading tactics to achieve the best profit result. If you win, you have been extremely lucky! Why don't these cotests focus on things like lowest drawdown, or best win-lose ratio? Only then would they be truly beneficial to learning something sustainable.
My personal opinion.
Is that the demo account is a great tool to learn to invest. It allows you to familiarize yourself with the trading platform and the trading conditions of your online broker without putting your money at risk since you manage a virtual balance to carry out transactions. When you have practiced enough in the demo account you can open a real account and start investing with your own money.
Many beginners think that a demo account and a real account work exactly the same but this is not correct since there are some differences from the point of view of the trader and also at a technical level.
Is that the demo account is a great tool to learn to invest. It allows you to familiarize yourself with the trading platform and the trading conditions of your online broker without putting your money at risk since you manage a virtual balance to carry out transactions. When you have practiced enough in the demo account you can open a real account and start investing with your own money.
Many beginners think that a demo account and a real account work exactly the same but this is not correct since there are some differences from the point of view of the trader and also at a technical level.
I think, after demo practice; demo contest is a good choice but it’s not primary process (contest) to the new traders before the demo.
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