Demo trading is obviously an important part of
growing as a trader. I don't believe that any new
trader should just jump into the market trading with real money if they don't feel
comfortable trading. This is why demoing is so
It allows people to learn forex
without worrying about losing any money. This is obviously important for traders that are just
You can test out different strategies until you feel
comfortable enough with using one.
The problem that some traders have is that they
become too dependent on demo trading.
They get so used to trading on a demo that they never
feel confident enough to trade with real money.
This happens to a lot of traders. Unfortunately
demo trading can't simulate the emotions that are involved with trading.
If you ever visit any forex forums, you'll notice a
lot of threads where traders discuss the kind of trades that they are taking. You'll see
plenty of times where traders discuss how much success they have had on their demos, but when they
start trading with real money, all of a sudden they are losing pips.
The reason is really obvious. When you are
trading with a demo, you don't have to worry about dealing with fear and greed. When there is
nothing at stake, you're obviously going to feel a lot more comfortable. But the key is to be
able feel that comfortable when you are trading with real money. The only way to do that is
by taking the leap and opening a real account. You'll never get a sense of what you are
capable of as a trader by overdemoing, then you'll be trading on emotions.
My suggestion would be to demo until you feel
comfortable enough with a system or method. You feel confident with the back testing you have
done and with your trading results on a demo. Then, don't prolonge it, just open up a live
account. The more you prolongue it, the worse it's going to be.
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