Newbie here! When to switch from demo to real accounts?

[lucie_fxtrader]

Hey guys!

I am relatively new to forex trading. So far I have only studied information available in the internet so to make sure i understand the basics before diving in...

My question here is... When is the right time to switch from demo to real accounts? I mean can you really be confident that your demo strategy will work on the real thing?
Thank you!

 

[Enivid]

Depends on the timeframe of your trading strategy. If you have a lot of trades per day, then demo-trading positively for a month or two can be enough. If your demo strategy is long-term, then you probably need some years before switching to live.

In any case, I would advise switching to small live account (under $100) to see if your strategy can be executed in real market conditions at all.

 

[radex78]

Maybe only as advice because so many trader get fail and can't maintain account more than six month, practice in demo they can trade for six month and use initial capital small money in demo at least equivalent with amount of money that will prepared later on real account, test your own skill and then making conclusion whether ready to start in real or not yet.

 

[lucie_fxtrader]

Thanks for your help guys. I'll keep practicing on demo and thinking to open soon a small real to get the feel of the market and see the difference.

 

[radex78]

Maybe one weakness on demo practice is can't built up psychology trading because no emotion pressure, and better in demo account use capital equivalent with amount money that want to investing in real account later, so if they want start with $100 hence they can use capiatl in demo also $100 for leanring, because usualy initial capital in demo is too much money so often result in demo better than in real account

 

[daveM]

Once you have established competence with one type of entry and exit, then you can entertain a real account.... It is up to you to evaluate your skill.

You need only one setup.... master that and you will have an income for as long as you are trading.

 

[radex78]

If any trader newbie they already have good confidence with their abiity during practice in demo, hence they can start with real account and choose cent account or micro account and just spent money that afford to lose, some broker offer low minimum deposit even use one dollar we have opportunity to trade in real account like as in my broker instaforex.

 

[AlexOZ]

When you follow a single trading plan - risk management, time commitments, entry and exit - to consistently generate a positive return on a demo account over say over two months. Be honest enough to include mistakes as they will cost you in real trading. Then start with enough to make reasonable trading decisions like scaling out etc. Contrary to others I believe a very small amount is not realistic for trading. So test, test, test before starting.

 

[CallahanSinclair]

Changing from a demo account to a real trading account depends on various factors, including your demo account's profitability. If you have developed a trading strategy, made consistent profits, and achieved your financial goals, you are more likely to succeed in a real trading account. The other factor is how well you understand market conditions. As you know, market conditions can change, so ongoing learning and adaptation are essential. Also, ensure that you have a clear risk management plan and have successfully implemented it during your demo account. I think these are the things that we should pay attention to in order to switch to the real account.

 

[Zerologic]

Being profitable with a demo account does not guarantee profitability on a real account, there are psychological differences that cause the emotional pressure of trading on a real account to be more pronounced. However, finding a profitable strategy with a good demo account as the first preparation.

 

[PipInfuse]

You’ll know it’s time to switch from a demo to a real account when you’ve consistently hit your trading goals and feel good about your strategy, just keep in mind that real money trading adds an emotional twist.

 

[David79]

You will know when the right time comes. Also live accounts involve emotional twists, so you have to be mentally prepared to afford the losses if you can else you are not ready

 

[Zerologic]

Trading on a real account does involve emotions, maybe the first time a trader switches from a demo account to a real account they will feel their heart pounding when they see floating losses and exited when they see floating profits.

 

[David79]

Trading on a real account does involve emotions, maybe the first time a trader switches from a demo account to a real account they will feel their heart pounding when they see floating losses and exited when they see floating profits.

Haha, I totally get that! When I first switched to a real account, my heart was pounding every time I saw floating losses, and I’d get a rush of excitement with floating profits but then doubt would creep in. It took a while to get used to it and stay calm, but those first moments really opened my eyes to how emotional trading can be.

 

[Zerologic]

Haha, I totally get that! When I first switched to a real account, my heart was pounding every time I saw floating losses, and I’d get a rush of excitement with floating profits but then doubt would creep in. It took a while to get used to it and stay calm, but those first moments really opened my eyes to how emotional trading can be.

Maybe all novice traders have experienced similar conditions when dealing with their emotions, but usually, as time goes by, emotions become more organized and everything becomes normal, profits and losses are normal conditions in forex trading.

 

[funshman]

I'm a newbie here, any advise for me on how to become a successful trader?

I would be glad if I could get a mentor here

 

[Zerologic]

I'm a newbie here, any advise for me on how to become a successful trader?

I would be glad if I could get a mentor here

Keep learning and never give up, stay safe trade.

 

[David79]

I'm a newbie here, any advise for me on how to become a successful trader?

I would be glad if I could get a mentor here

There is no single mantra for success in trading. I would suggest beginning with some basic courses to understand the fundamentals. It's important to trade on a demo account initially to practise without risk. I also recommend dedicating time each day to market analysis to develop your skills and insights. Staying updated with market news and trends is crucial, as it helps make informed decisions. I’m confident that these steps will help you.

 

[Zerologic]

Traders can use free demo accounts to learn trading simulations, apply trading systems and strategies, try money and risk management practices, and evaluate the performance of trading systems and strategies, good early preparation could minimize the impact of risk.

 

[ChelseaR]

Traders can use free demo accounts to learn trading simulations, apply trading systems and strategies, try money and risk management practices, and evaluate the performance of trading systems and strategies, good early preparation could minimize the impact of risk.

Totally agree! Demo accounts are very important to test out the strategies without actually risking your own money. I got to learn a lot from the demo account I created.