Demo to live account

[Axiory]

Hi everyone,

Just out of interest
How long did you have a demo account for before you went live?

Or did you just open up a live account without having a demo account?

Regards,

Jeff

 

[CanOz]

Hi everyone,

Just out of interest
How long did you have a demo account for before you went live?

Or did you just open up a live account without having a demo account?

Regards,

Jeff

Hi Jeff, i was on SIM for 8 months before i went live with an intraday automated system. I'm currently using the SIM to attempt intraday discretionary trading as well. The SIM is useful too if you hit your day stop, at least you can hit the SIM for practice.

CanOz

 

[cogs]

Depends also on how much trading experience you also. If you are new to trading 6 months or a year on demo would be a good start.

If you are experienced you only would use a demo to pick up on the brokers tools, platform and order execution etc, having said that order execution on demo is always instant.

Nothing like jumping in the deep end but I would advise small trades only for quite some time. FX is totally unforgiving and agressive.

 

[skc]

Hi everyone,

Just out of interest
How long did you have a demo account for before you went live?

Or did you just open up a live account without having a demo account?

Regards,

Jeff

When I started 4 years ago, I was on the demo account for 2 weeks. Then I funded the account and started playing with real (albeit small) money. Stopped to think when I was 50% down 2 months later.

Topped up the account with real money, tried something else. Stopped again to think when I was ~30% down in another 2 months.

At least I learned to stop earlier the second time around.

So come up with a strategy / approach / plan first, then use the demo to test it, then commit real money.

Or pay some expensive tuition.

 

[TulipFX]

Start with a demo account. Once you have got the hang of it, have a system and are making good pretend money fund a small account.

Trading demo and trading real money is chalk and cheese. The hardest aspect of trading is controlling emotions. On a demo it is not real money, so there is no emotion involved in implementing your system.

Once you move to live trading, the drawdowns are real. This can negatively impact your decision making.

Half the battle in becoming a profitable trader is controlling emotions. For that there is no substitute for real money.

Better off to 'lose' a grand or two then pay someone to 'teach' you how to trade. As they can never train the emotions no matter how good the manual system.

 

[Axiory]

Start with a demo account. Once you have got the hang of it, have a system and are making good pretend money fund a small account.

Trading demo and trading real money is chalk and cheese. The hardest aspect of trading is controlling emotions. On a demo it is not real money, so there is no emotion involved in implementing your system.

Once you move to live trading, the drawdowns are real. This can negatively impact your decision making.

Half the battle in becoming a profitable trader is controlling emotions. For that there is no substitute for real money.

Better off to 'lose' a grand or two then pay someone to 'teach' you how to trade. As they can never train the emotions no matter how good the manual system.

So do you think it is worth just opening a live account with a small amount of money rather than a demo account then?

 

[TulipFX]

So do you think it is worth just opening a live account with a small amount of money rather than a demo account then?

Once you have gotten comfortable with trading. When you think you have things understood. The next step to learning is understanding the emotions of trading. To truly be able to do that you need live money. The pressure of trading live money is just as important as the other facets of trading. So as soon as you feel comfortable, get uncomfortable with some real money. $1,000 or so will do the trick IMO.

 

[tayser]

So do you think it is worth just opening a live account with a small amount of money rather than a demo account then?

If you have $500 or so to spare (pretty average min account opening for bucketshop MT4 brokers) - i.e you're not going to be in dire straights if you blow up the account then yes, go live (you must mentally prepare yourself - say to yourself "I could lose it all today" - if you're comfortable with it - I mean really comfortable with potentially losing ~$500 then use a small live account)

Demos are good for testing: functional and user acceptance testing.

 

[cynic]

I consider demo accounts potentially useful for two things only, firstly as a medium for the recording of paper trades wherein one attempts to prune out poorly performing strategies and secondly for acquainting oneself with the broker/provider's trading platform. Unfortunately, because no real money is at stake, the demo account often allows a trader to enjoy a smoother trading experience free from slippage, margin calls, auto closure and a myriad of other practical considerations that a trader will inevitably encounter when trading live.

If you have $500 or so to spare (pretty average min account opening for bucketshop MT4 brokers) - i.e you're not going to be in dire straights if you blow up the account then yes, go live (you must mentally prepare yourself - say to yourself "I could lose it all today" - if you're comfortable with it - I mean really comfortable with potentially losing ~$500 then use a small live account)

Demos are good for testing: functional and user acceptance testing.

Whilst I'd agree that the real learning comes from actually trading with real money where every mistake impacts one's account balance and is hence reinforced in the memory of the budding trader, I'd caution against the misconception that the only money at risk is that placed in one's account. On more than one occasion during the past six years I've had an account go into deficit (i.e. total losses were in excess of the total funds in the account, even after closure of all positions). At times the aforementioned deficits were substantial! A careful reading of the PDS should alert you to the obligations you accept when availing yourself of the products offered.

I wish to emphasise this point - when trading leveraged products, unless the PDS (and associated client agreements) clearly state otherwise, circumstances can arise where a trader can be liable for losses exceeding the total amount paid into their trading account!

 

[suzee]

I was on a demo account for about 6 months before I went live. My learning curve wasn't as steep as my bf had been trading Forex for about 2 years prior to me demoing.

I ended up losing all my money lol. Demo is completely different to live as your emotions are completely different!

I agree with using smaller lots and trading small, so you don't have to worry about emotions. You will build up more confidence and you will adapt easier when you start trading with more money.

 

[Axiory]

I was on a demo account for about 6 months before I went live. My learning curve wasn't as steep as my bf had been trading Forex for about 2 years prior to me demoing.

I ended up losing all my money lol. Demo is completely different to live as your emotions are completely different!

I agree with using smaller lots and trading small, so you don't have to worry about emotions. You will build up more confidence and you will adapt easier when you start trading with more money.

Hi Suzee,

Thanks for the reply.
What made you feel ready to go live? Did you wake up one day and feel like it was right or did you have a good 6 months on a demo account?

Are you trading now?

Regards,

Jeff

 

[CanOz]

Wow, Suzee sure got a response quickly from the OP....

 

[johenmo]

Wow, Suzee sure got a response quickly from the OP....

Jealous??

 

[CanOz]

Jealous??

As much as you can imagine !

CanOz

 

[cogs]

Demo is completely different to live as your emotions are completely different!

If you are serious about trading your emotions should be very similar for live or demo, unless you are just having a bit of fun with figures higher than you would normally trade anyway.

I agree with using smaller lots and trading small, so you don't have to worry about emotions.

Sorry, can't agree with that. This sounds like you have too much money and no trading risk strategy/plan. Consider No. of winners Vs losers, and maximum you want to lose per trade Vs max profit per trade. It's all relative to how much capital and confidence you have anyway.
If you have ninety nine small lot losers and one small lot winner, this result should definately effect your emotions, even if the winner puts you back in profit.

Everyone has their own strategies.

The problem with microlots is you can be a successful trader and still not make any money. The market will change profile before you can make $20, and the microlot market is strictly retail market maker in house broker games.

 

[Axiory]

Jealous??

Am I missing something?

 

[OGRooney]

So many micro brokers will give you cash to trade with risk free, if I named a few would I be breaking spamming rules? I reckon they are a good compromise as far as simulating the real experience goes because it's real money but your not actually risking anything, so even though you can make stupid decisions "risk free", you stand to gain something if your careful and manage your money properly.

 

[skc]

So many micro brokers will give you cash to trade with risk free

Really? I've nevery seen one...

 

[Joules MM1]

Really? I've nevery seen one...

used to be common fare......maybe that was c'mon to the fair......cheap hook often the proviso was bring some dosh to us first......of course most providers knew the numpties would lose and the platform was/is going to market against the small fry......

 

[Joules MM1]

i think a cupla platforms got their coddas handed to them and then it was abruptly stopped across the industry.....dont know for sure....suprising anyone is doing it now