Demo accounts
Oct 02, 2022 at 22:02
536 Views
6 Replies
Oct 03, 2022 at 00:41
Absolutely, but be aware.
Demo accounts should be used to help you understand the ins and outs of trading basics (i.e. risk management/volume sizes, limit orders, execution times, timeframes, and all of the tools in general)
However, some people, potentially most people, aren't able to imagine that a demo account is as serious as a live account because at the end of the day, it's not real money. For some though, we are able to take demo just as seriously as live in a way that allows us to simulate what live trading might be like. This does not outweigh the emotional and mental aspects of trading with a live account in any way, but if you take demo seriously, you can almost trick yourself into believing it's just as important as the live account trading which will assist you in your psychology when you switch over to a live account.
Ultimately, you should try to move to a live account with a nominal deposit that you're willing to lose (in the US, something like $50-100 dollars is a good start.) This way, you can start to understand the emotion that is tied to seeing real money added or subtracted from your account, something that demo trading can only teach but so far because it's paper money.
...but by all means, trade with demo to test/backtest/forward test and learn the tools themselves before dumping live capital into an account. You'll be glad you did-
Demo accounts should be used to help you understand the ins and outs of trading basics (i.e. risk management/volume sizes, limit orders, execution times, timeframes, and all of the tools in general)
However, some people, potentially most people, aren't able to imagine that a demo account is as serious as a live account because at the end of the day, it's not real money. For some though, we are able to take demo just as seriously as live in a way that allows us to simulate what live trading might be like. This does not outweigh the emotional and mental aspects of trading with a live account in any way, but if you take demo seriously, you can almost trick yourself into believing it's just as important as the live account trading which will assist you in your psychology when you switch over to a live account.
Ultimately, you should try to move to a live account with a nominal deposit that you're willing to lose (in the US, something like $50-100 dollars is a good start.) This way, you can start to understand the emotion that is tied to seeing real money added or subtracted from your account, something that demo trading can only teach but so far because it's paper money.
...but by all means, trade with demo to test/backtest/forward test and learn the tools themselves before dumping live capital into an account. You'll be glad you did-
Oct 03, 2022 at 00:50
How to open a demo account a trader can visit the official website of a particular broker where they will trade, or directly they can open a demo account using MT4 or MT5 or Ticktrader trading platform, open an account demo account is very simple.
Member Since Apr 09, 2019
538 posts
Oct 03, 2022 at 09:26
Before you even consider getting real money in the market you need to have a well tested strategy. This is done on a demo account where you can trade and test without the emotional tie to real money. Too many skip this step and their poor psychology, lack of planning and greed ruins them.
If you can't spot the liquidity then you are the liquidity.
Member Since Jun 26, 2020
327 posts
Oct 03, 2022 at 11:08
demo is important but we generally don't believe the importance of this trading place at all.
Member Since Aug 05, 2021
401 posts
Oct 21, 2022 at 16:21
Demo accounts are the best hands on tool that traders have at their disposal. I think it's crucial to use one in the beginning. You can also use it to test strategies - don't see why anyone would skip it and put real money on the line before testing!
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