Demo accounts

downtrend

Sergeant
Messages
878
Advantage - learn the platform and test new strategies with no risk.
Disadvantage - no psychological stress like real trading. Less slippage/requotes than real environment.

You are right, a trader can practice with free will in a demo account with what ever amount he wants but a great disadvantage is lack of emotions.
 

iMusingKiMi

Sergeant
Messages
896
You are right, a trader can practice with free will in a demo account with what ever amount he wants but a great disadvantage is lack of emotions.

Especially I believe a lot of people doesn't want to take DEMO trading seriously when there are no real fund involve.
 

Jason_85

Private
Messages
33
Especially I believe a lot of people doesn't want to take DEMO trading seriously when there are no real fund involve.
Of course there are a lot of them, but at the same time there is huge amount of those who prefer to trade demo's before investing real money. In my opinion Demo account is good when you are a newbie, not an experienced trader.
Recently I noticed a lot of new members who prefer to start from demo accounts.
 

iMusingKiMi

Sergeant
Messages
896
Of course there are a lot of them, but at the same time there is huge amount of those who prefer to trade demo's before investing real money. In my opinion Demo account is good when you are a newbie, not an experienced trader.
Recently I noticed a lot of new members who prefer to start from demo accounts.

Yes, I do believe that a lot of them prefer to start from demo, but most of them does not take it seriously, that's the point. Even an experience trader need demo account, because we still need to run our new strategy in there.
 

davidshanks

Recruit
Messages
10
Hi guys!
Can you name me some advantages and disadvantages of demo accounts?
As per my opinion, Demo account is useful for everyone. For the novice traders, it is helpful in learning the basics of trading. And for the veterans, it is helpful in testing their strategies. But the point is demo account fetches you benefit only if you take it seriously. Some traders believe that Demo account is worthless. As with the demo money, you don’t trade with discipline. When you know you are not trading with your real money, then you don’t care to lose, and so you can make all the possible mistakes, like taking positions with any trade setup (either weak or strong) you see, taking positions while there is no trade setup, over-trading etc. It will be a disaster if these bad actions become a habit in you.They believe demo trading causes the novice traders not to learn to trade with discipline, and this will be ended to failure finally. On the other hand, if you take trading seriously, you can develop confidence to trade in real account. Confidence is one of the most important factors in forex trading. we need to be grow up our confidence, knowledge and trading experience with demo trading.
 

Jason_85

Private
Messages
33
As per my opinion, Demo account is useful for everyone. For the novice traders, it is helpful in learning the basics of trading. And for the veterans, it is helpful in testing their strategies. But the point is demo account fetches you benefit only if you take it seriously. Some traders believe that Demo account is worthless. As with the demo money, you don’t trade with discipline. When you know you are not trading with your real money, then you don’t care to lose, and so you can make all the possible mistakes, like taking positions with any trade setup (either weak or strong) you see, taking positions while there is no trade setup, over-trading etc. It will be a disaster if these bad actions become a habit in you.They believe demo trading causes the novice traders not to learn to trade with discipline, and this will be ended to failure finally. On the other hand, if you take trading seriously, you can develop confidence to trade in real account. Confidence is one of the most important factors in forex trading. we need to be grow up our confidence, knowledge and trading experience with demo trading.
Good point of view, I almost agree with you. But why when most of the traders switch to real accounts they fail ?
 

davidshanks

Recruit
Messages
10
Well, according to me, reason for losing money on switching to real accounts is same as I mentioned before. That is, the traders are not serious while they trade using demo accounts because their hard earned money is not at stake. As a consequence, the learning suffers and the knowledge remains subdued. The habit of putting random trades in demo account eventually leads to losses in real account. This is what I think. There may be other reasons also. Please share your views about what are likely to be the other reasons for this.
 

Jason_85

Private
Messages
33
Well, actually I had no idea why that happens, that's why I asked you.
From what you've said it sounds like demo accounts are not so useful as brokers represent them.
Maybe we should not focus on demo accounts for a long time. When we'll involve our own money we'll have some kind of target, which contains 2 things: not to loose your money, own profit.
 

Albert Dcosta

Corporal
Messages
70
Well, actually I had no idea why that happens, that's why I asked you.
From what you've said it sounds like demo accounts are not so useful as brokers represent them.
Maybe we should not focus on demo accounts for a long time. When we'll involve our own money we'll have some kind of target, which contains 2 things: not to loose your money, own profit.


When i started doing my trading then at that time i w as not having much knowledge about how to make use of the Demo trading accounts.

But that was 4 years back as then i moved on and learned my trades well with the use of the Demo trading accounts.
 
Top