Demo vs. Real Money Account
Atlanta South 23:57 GMT December 10, 2007
Ref 22:35/This post just caught my attention & if I might would like to weigh in with my views. Demo accounts service a purpose, BUT are very misleading to a new trader. A demo will give a new trader a false sense of security because they are not what your will see in live trading. Several yrs back in the beginning of my FX trading I had a really great yr position trading & closed out the yr with really obsence gains only to lose 75% of those gains in the 1st quarter of the next yr. Now this was on a live account & my point being, what works now, might not work next month, next yr or even next week & we as traders must be prepared to adapt to the flow of the markets we trade.
I know you already know this, but I am speaking to those new traders out there who are just getting started. Once real money is on the line everything will be much different from the demo days. Tks for your informative post as I derive much benefit from each. These are just my views. Gt to all.
nj jf 22:35 GMT December 10, 2007
toronta sm 21:46 GMT December 10, 2007
There is no security in FX due to the use of leverage for the retail size trader. You need a substantial amount of capital to overcome this. Also as pointed out demo accounts aren't manipulated and provide a false sense that you can beat the market. Its got to do with risking nothing vs risking real dollars the mental aspect of trading is difficult for people with little or no experience.
We had a poster lose everything he had in $cad something like 1.2 mio dollars - this can be the reality of this business and something you must establish rules for your trading. Also just because someone says I made a tonne of money last year or last month is irrelevant - its more in their ability to weigh their risk vs reward over the long haul