Demo accounts

[Anthony23]

Demo account has some serious advantages and it works as a deciding factor for your trading career ahead. You need to spend atleast 4 months on the demo account before entering the live account with real money. Do you have a personal demo account?

 

[dianajs]

I have had a demo account since I started trading. I return to it from time to time to test new strategies.

 

[Ken Smith]

Hi guys!
Can you name me some advantages and disadvantages of demo accounts?

Demo account is important for learning technical aspects of trading. Most new traders take a huge capital in demo account and open random trades. By doing this they hamper their trading psychology. Demo should be used to experiment different strategies. Demo is the trading laboratory.

 

[maria_taylor]

Demo account is important for learning technical aspects of trading. Most new traders take a huge capital in demo account and open random trades. By doing this they hamper their trading psychology. Demo should be used to experiment different strategies. Demo is the trading laboratory.

I completely agree with you, actually demo is like the trading laboratory. We can test here any kind of trading strategy before implementing it in real trading world. But if traders won’t take demo seriously then surely it will hamper their psychology while trading on live account.

 

[dianajs]

Traders would hamper all aspects of their development if they don't take demo trading seriously, in my opinion. One can only learn if they trade on a demo account exactly as they would trade on a live account.

 

[bigdolly]

Traders would hamper all aspects of their development if they don't take demo trading seriously, in my opinion. One can only learn if they trade on a demo account exactly as they would trade on a live account.

Yes newbie traders tend to underscore risks associated with trading, because they tend to overestimate their chances of winning. That's why psychological state is important when you consider switching from demo to live account.

 

[Addam]

The advantages of demo account trading is that you get familiar with the techniques of trading and there is no chance of losing actual money. The disadvantage is that there is no loss impact. I mean there is no pressure and you learn a lot in pressure situations.

 

[scott11]

Demo accounts are best for beginners to learn how to trade in the forex market. They can learn through the demo account and also how to make a move and also how to improve the way of thinking. Beginners must have to spend time on demo account as much as possible.

 

[Anthony23]

Demo account has many advantages and some drawbacks as well. The advantages are it gives you an opportunity to practice your knowledge and build a strong strategy. The drawback is many people try to trade with higher amounts as compared to the amount they intend to invest on live account. It is worst thing!

 

[dianajs]

People definitely do that, unfortunately. I have been tempted to do it too, and I have occasionally done it, but it only helped me understand how futile an excercise that is. The best thing one can do is to trade on a demo account exactly as they would on a live account.