Demo Contests - Big Newbie Mistake

[Rambo35]

I think demo contests are one of the biggest mistakes new traders can make. I know plenty have flocked to the forex market by clicking on banners and approaching it with the wrong mindset and insufficient trading capital.

Plenty of brokers cater to that and offer demo contests where traders can win free money which will be deposited into their trading accounts. This often comes with so many rules and guidelines that most will never fulfill them.

That is not even the worst part, the only way to win a contest is to ignore things like risk management and basically you go all-in all the time and hope you get it right which promotes the type of trading mentality which is destined for failure.

That's why I think demo contests are terrible for new traders as they learn the wrong things and get their hopes up that real trading is similar to that. I think all traders should stay away from forex demo contests.

What do you guys think?

 

[Red Herring]

I think demo contests are one of the biggest mistakes new traders can make. I know plenty have flocked to the forex market by clicking on banners and approaching it with the wrong mindset and insufficient trading capital.

Plenty of brokers cater to that and offer demo contests where traders can win free money which will be deposited into their trading accounts. This often comes with so many rules and guidelines that most will never fulfill them.

That is not even the worst part, the only way to win a contest is to ignore things like risk management and basically you go all-in all the time and hope you get it right which promotes the type of trading mentality which is destined for failure.

That's why I think demo contests are terrible for new traders as they learn the wrong things and get their hopes up that real trading is similar to that. I think all traders should stay away from forex demo contests.

What do you guys think?

Agreed Rambo. Very good info for newbies. I would also suggest that please stay away from any bonuses from the broker.

 

[willforex]

I think demo contests are one of the biggest mistakes new traders can make. I know plenty have flocked to the forex market by clicking on banners and approaching it with the wrong mindset and insufficient trading capital.

Plenty of brokers cater to that and offer demo contests where traders can win free money which will be deposited into their trading accounts. This often comes with so many rules and guidelines that most will never fulfill them.

That is not even the worst part, the only way to win a contest is to ignore things like risk management and basically you go all-in all the time and hope you get it right which promotes the type of trading mentality which is destined for failure.

That's why I think demo contests are terrible for new traders as they learn the wrong things and get their hopes up that real trading is similar to that. I think all traders should stay away from forex demo contests.

What do you guys think?

Good one Rambo. I still remember I also tried contests few years back and that's kind of a race. You won't learn anything there. Also they have so many rules. You will never walk as a winner with big bucks.

 

[LoRio]

did you just get wiped out?
I agree partially with your statements.
If this thread is meant to reinforce the belief that you are not making mistakes at all , and it was just the competition's drive , then i think this thread will prove to have been a mistake later on.

I agree that this is the mentality they "install" in traders , i had that mentality for quite a long period.
And i started with competitions literally.
But , a competition , showed me into not_full_risk trading.This is very personalized , so , it could apply in very rare occasions.
So there , tiny not fully agreeing.

 

[Pharaoh]

If the a trader can consider the demo contest to be a game where one is supposed to break all sane risk management rules, it can be fun. Otherwise, contests are generally a very bad way to learn how to trade.

 

[Rambo35]

did you just get wiped out?

I never really bothered with them to be honest, so no I did not get wiped out. I do see a lot of posts about new traders thinking it is a great way to boost your trading portfolio which is why I wrote about it. As Pharaoh said that if you understand that it is a contests and you forget all rules about trading they can be fun alright.

The problem I think is that most approach forex with the wrong mindset to begin with and plenty of newbies may get lucky and win a contest and then think that is how you trade.

 

[LoRio]

its like dating.
if you go up to the girl thinking "i have to get laid".Nope.