Demo accounts

davidshanks

Recruit
Messages
10
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.
Yeah man, exactly what my point was. You must have taken your demo account seriously at that time thus acquiring the required knowledge and learning the tips n tricks of forex trading. Demo trading is definitely useful. It has fetched me benefits as well. For the beginners, it is best to go with demo account or else they will lose their precious money.
 

Pharaoh

Colonel
Messages
19,964
Think about it. In a $5000 demo account, if you make $10,000, it's cool, but not real. If you lose the entire $5000, no problem, just open a new account.

Assuming a "perfect broker" with nearly infinitely deep pools of liquidity (so all executions match demo exactly - not ever going to happen in the real world), if you put $5000 of your hard earned dollars into an account and have a trade with a target of $100 make 50 dollars and start to retrace, the urge to close NOW to save the profits will be there, even if your trading system that worked on demo didn't call for this. A trade that starts off with a planned $50 SL reaching -$40 even though your gut tells you it's going to turn back in your favor often leads to SL's being extended (or even removed). These two urged in conjunction can lead to wrecking a profitable trading system by closing profitable trades too early and letting losing trades go too far.

On a demo, it wouldn't matter. When it's YOUR MONEY, the viewpoint changes.
 

margin

Private, 1st Class
Messages
53
Demo trading is necessary. You need to start in forex market and demo accounts are the best way to do so. If you will start from real account directly then you won't be able to train yourself later to gain good experience.
 

nahiyar

Private, 1st Class
Messages
827
Direct trading on live account is not safe way of trading. Demo accounts are for traders facility . They can practice on demo as much until they are not confident to face live market. Demo is a free training account for them , as much they loose they had no effect on their pocket.
 

Jason_85

Private
Messages
33
Direct trading on live account is not safe way of trading. Demo accounts are for traders facility . They can practice on demo as much until they are not confident to face live market. Demo is a free training account for them , as much they loose they had no effect on their pocket.
Of course it's not, so If you take no risks, you will suffer no defeats. But if you take no risks, you win no victories.
 

david moore

Recruit
Messages
9
Advantages:

Trade risk free : You don't risk any capital with a practice account, so are free to experiment with strategies.

Disadvantages:

Creates a false sense of confidence If you are great at paper trading, does that mean you will be a great trader? Not necessarily. A practice account is a controlled environment where losses don't mean anything, for example. You need real world experience to be a good trader
 

nahiyar

Private, 1st Class
Messages
827
I feel very comfortable with demo accounts. In start we do more mistakes , loose much so demo is good to make practice and experience without any fear you can test many systems and strategies and become well trained in them .
 

Aaron Dias

Recruit
Messages
108
I feel very comfortable with demo accounts. In start we do more mistakes , loose much so demo is good to make practice and experience without any fear you can test many systems and strategies and become well trained in them .

Yes that is a fact that when we are making use of the Demo trading accounts then we do not have to worry much about the losses we are getting. Just we need to focus more on the trading strategy and the results that we get out of them.
 

Whitesnake

Corporal
Messages
428
Demo accounts are very much helpful for all the aspirant forex traders who wish to learn trading aspects but cannot afford to invest their hard earned money. Hence, such traders can always trade through demo accounts and develop trading skills which will make them great traders.
 

Aaron Dias

Recruit
Messages
108
Demo accounts are very much helpful for all the aspirant forex traders who wish to learn trading aspects but cannot afford to invest their hard earned money. Hence, such traders can always trade through demo accounts and develop trading skills which will make them great traders.

It will actually depend on the trader to be able to take advantages of his Demo based trading and once he can do it he will start learning and become more confident as a Forex trader.
 
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