Demo and Discipline!

[bertie123]

Hi Guys

I'm a relative newbie trading Fx on demo and I can't seem to get my discipline right. I am convincing myself this is because of demo money - would I be more disciplined with real money(smallest poss stakes, eg 10 or 50p a point)? Anyone with experience/thoughts about this problem please advise. Surely most people are more disciplined when real money is on the line?

 

[Rhody Trader]

I will always say that it's worth getting your feet wet in live trading at the earliest point you can - albeit with only a very small amount of money. You'll notice a distinct difference in your mental state when you have real money on the line.

To the broader discipline point, if you're really having a problem then it would be safe to suggest that maybe the way you're trying to trade just doesn't suit you.

 

[barjon]

I'm with Rhody on this. In answer to your question - the reverse is often the case since it's easier to stick to a plan when there's nothing riding on it. So, if your lack of discipline is to do with not sticking to the rules of your plan then I'd be a tad surprised if you improved things with real money down. However, if your lack of discipline is about being tempted to trade "off plan" then having real money down may help you resist the temptation.

good trading (demo or otherwise!!)

jon

 

[grantx]

Bertie,

It's not only a question of your discipline; it's also a question of your approach/strategy. If you can't make it on a simulator, practise (and learn about the markets) until you can. Why should cash make everything right? It doesn't.

How much do you need to put in (on replacing losses)before you learn sufficiently or decide fx isn't for you (maybe another market would be more suitable)? The fear of losing (hard cash) is a burden in itself without the uncertainty of an inadequate system.

Grant..

 

[bansir]

Hi,
If I could just add a little bit to what's been said.

You may consider doing both, demo until you can stick to your rules for 2 or 3 days
of the week then trade v. small size for remainder of the week.

As soon as your discipline slips or you hit a losing run GO STRAIGHT BACK TO DEMO MODE.

Come back to small lots when you've regrouped and start to see good demo trades.

Trade both demo and small lots with your main objective being to STICK TO YOUR RULES.

Best Regards,
Neil

 

[bertie123]

Thanks for the advice guys, all points taken. Had never thought of combining demo and micro lots - an idea I will look into. Good trading to all.

 

[NeverStopLearning]

Hi Guys

I'm a relative newbie trading Fx on demo and I can't seem to get my discipline right. I am convincing myself this is because of demo money - would I be more disciplined with real money(smallest poss stakes, eg 10 or 50p a point)? Anyone with experience/thoughts about this problem please advise. Surely most people are more disciplined when real money is on the line?

No If you can't be consistently disciplined on your demo, there's no way you'll be able to do it live. I understand the reason, it's the same for me in the demo now. However, you still have to test a strategy consistently on the demo over a longer period of time before you go live.

 

[AriaS]

You need a strict strategy and trade only according to its rules. You will do this only if you are certain that it works. You can be certain that it works only by backtesting it.