How many trades should I make in a demo account before progressing onwards.

This is a discussion on How many trades should I make in a demo account before progressing onwards. within the First Steps forums, part of the Reception category; You should approach the way you trade demo and real the same way. But if you do take excessive risk ...

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Old May 25, 2011, 9:17pm   #15
Joined May 2011
Re: How many trades should I make in a demo account before progressing onwards.

You should approach the way you trade demo and real the same way. But if you do take excessive risk because it is a demo, tho it will affect the size of your returns, it should actually lower your average returns and so probably won't hit the target if you set it high enough.

I think anybody with the mindset that think you learn nothing from a demo see trading more as gambling than learning a skill to make money and looking for that emotional hit of winning. Don't think it is the best way to approach trading.
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Old May 26, 2011, 9:48pm   #16
 
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Re: How many trades should I make in a demo account before progressing onwards.

3-4 years everyday.
Ignore all commentary.
Use simple charting, don't over elaborate.
Pay close attention to all central bank and govt actions and statements, to war and natural disasters.
Trade one item and don't budge however obvious it looks.
Learn to wait for "the moment of the sure thing", even if it takes months or years.
Move your stop to either protect profit or increase position.
Observe yourself constantly.
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Old May 27, 2011, 5:06am   #17
Joined May 2011
Re: How many trades should I make in a demo account before progressing onwards.

I like sizzler944's concise list although I'd prefer not having to wait 3-4 years until I'm profitable. Who knew there was so much debate over whether to trade demo or not!

I'd have to agree with TimYoung, if you trade on demo as you would with real money there's no way that it can't be considered a valuable testing bed and learning tool.
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Old May 27, 2011, 5:38am   #18
 
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Re: How many trades should I make in a demo account before progressing onwards.

Quote:
Originally Posted by forefit View Post
Thanks but doesn't answer my question tho, how many trades is needed before you can say a that a system works? or isn't there a number?

By the way I don't want some smart **** to tell me that I would only truly know if a system works after I have done infinite trades or a million trades. Lets be realistic people.
It depends what you mean by 'system'.

If you have a totally rules based system that uses no discretion but just a technical set of rules and it has been backtested on old data. It wont work anyway.

If you have a system that takes 100 x 1 tick trades a day, capitalizing on a tiny edge - you will need thousands of trades.

If you have a technique where you are making 2 or 3 trades a day, I'd say give it one month before going live.

When you go live - you have to start small. This would be an issue if you have a system that trades the ES and you have a $5k account.

There are so many variables here and the answers you want can only be given if you tell people what it is you are doing.
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I cannot see., however why we should expect to find a "system" which will work in the stock market; surely the possibilities of profits for the student justify the time and effort required to learn market interpretation.

Humphrey B Neill - 1931
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Old May 27, 2011, 5:40am   #19
 
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Re: How many trades should I make in a demo account before progressing onwards.

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Originally Posted by sizzler944 View Post
3-4 years everyday.
Ignore all commentary.
Use simple charting, don't over elaborate.
Pay close attention to all central bank and govt actions and statements, to war and natural disasters.
Trade one item and don't budge however obvious it looks.
Learn to wait for "the moment of the sure thing", even if it takes months or years.
Move your stop to either protect profit or increase position.
Observe yourself constantly.
LOL @ 3-4 years, every day BEFORE making a live trade.

Yup - just take 3 or 4 years off work and you'll be fine. Then switch to live trading at the end of year 4 and you'll have no problems whatsoever. After all, live trading is just the same as SIM trading.
__________________
I cannot see., however why we should expect to find a "system" which will work in the stock market; surely the possibilities of profits for the student justify the time and effort required to learn market interpretation.

Humphrey B Neill - 1931
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Old May 27, 2011, 5:44am   #20
 
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Re: How many trades should I make in a demo account before progressing onwards.

Quote:
Originally Posted by Anita V View Post
I like sizzler944's concise list although I'd prefer not having to wait 3-4 years until I'm profitable. Who knew there was so much debate over whether to trade demo or not!

I'd have to agree with TimYoung, if you trade on demo as you would with real money there's no way that it can't be considered a valuable testing bed and learning tool.
Well, that's rather the point, isn't it.

You can't trade demo as you would with real money.

You can however play with small money. Hence we need a small money thread methinks....
__________________
I cannot see., however why we should expect to find a "system" which will work in the stock market; surely the possibilities of profits for the student justify the time and effort required to learn market interpretation.

Humphrey B Neill - 1931
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Old May 27, 2011, 7:03am   #21
 
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The only argument people appear to have is learning self control to keep emotions out the decision making process. To me this is like telling the person to go fly an F16 without knowing anything about the controls or terminology. People have to learn about the market first. People have to find their way to consistently being correct more than they are wrong. Some of you think if people cant afford a few hundred bucks then what's the point. Why would anyone want to spend even a cent if they don't need to in the learning process. They might as well take that money, wipe their @rses with it and flush it away because they will lose it all while learning guaranteed. The only difference between demo and real functionally is execution.
Why is it so important to have real execution if the person is still trying to figure out their @rse from their face in this business. There is absolutely no point in going live until these people learn how to trade first. You can't run before you crawl. Such advice can be detrimental to new traders because the pain of being wrong and physically losing money in the process can only do more harm than good. Why add additional pain to the process of learning when it isn't necessary. How can anyone master their self control if they can't trade in the fist place. Execution isn't important in the early stages of development.
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Thanks! The following members like this post: the hare , glyder
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