New At Trading Forex, Need some help,,,,THANKS

[1arko23]

Hi...
I have started trading on the Forex Demo Account about 2 weeks ago and am making money there. I read couple Ebooks on Forex Trading and understand Limits, Stop loss, and generally buying and selling currency...
My question here is what is the difference between real and demo account other than real money.
Are the Charts and everything else the same.
Any tips are appreciated as I will probably try trading with a small amount $100-$300 just to figure out everything and how different it is when trading with real money..

Thanks a lot and any tips are appreciated.....

PEACE

 

[Vrothdar]

Do you have a trading plan? How do you plan to trade with such a small amount of capital? What is the forex demo trading account?

 

[1arko23]

Do you have a trading plan? How do you plan to trade with such a small amount of capital? What is the forex demo trading account?

I want to trade day to day and just learn as much as I can by getting couple pips here and there or loosing.I want to start of with trading with this small capital just to learn trading real money without having to worry about big losses. Im ok if I loose the $300 but learn from it. The demo account gives you money to trade and learn so that is why I wanted to find out if it is the same with real money.

 

[Vrothdar]

So which broker are you using that will allow you to trade such a small amount of capital? Is it possible for you to trade with such a small amount without risking a large amount of your account in each trade? Do you have a strategy for entering and exiting trades and for staying out of the market?

When I asked what you meant by the demo account I was trying to hint at how difficult it is to offer any useful advice with such vague information. I could offer all sorts of tips, as could others, but they'd be largely irrelevant because we know so little about what you're after.

The demo account gives you money to trade and learn so that is why I wanted to find out if it is the same with real money.

You shouldn't find any real differences between the platforms themselves. You'll almost certainly find that trading with real money is a very different experience.

 

[1arko23]

So which broker are you using that will allow you to trade such a small amount of capital? Is it possible for you to trade with such a small amount without risking a large amount of your account in each trade? Do you have a strategy for entering and exiting trades and for staying out of the market?

When I asked what you meant by the demo account I was trying to hint at how difficult it is to offer any useful advice with such vague information. I could offer all sorts of tips, as could others, but they'd be largely irrelevant because we know so little about what you're after.





You shouldn't find any real differences between the platforms themselves. You'll almost certainly find that trading with real money is a very different experience.

Thanks for replying and Im using VT Trader from CMSFX.com demo account and am making money in there by buying and selling EUR/USD within 20 min windows. I use the 1min and 5min charts to kinda see where the market is going. I dont have any real strategy other than following the charts and buying when I think I should, same with selling.
I am gonna start with the small amount of capital sometime next week and see how that goes.
I never traded before so I kinda expect to loose but gain knowledge out of it.

 

[Vrothdar]

That's better. I'd suggest writing down your plan - how do you set stop losses? Do you have profit targets? How do you decide your decision was wrong?

Biggest thing I'd be wary of trading such a small amount of capital is having to risk a large percentage of it on each trade. As a general rule of thumb you'll find a lot of people would suggest risking no more than 1 - 3% of your account on any single trade. If you're trading with $300 that's $3 - $9 risked per trade. Is it possible for you to trade in small enough lots that you can have your stoploss where it should be and still only risk that amount?

Try checking out Forex Training & Education: Beginner Foreign Exchange Currency Trading. It's a very good place to start for beginners although be wary of getting distracted by the TA discussion there - If you're happy with your trading strategy stick to it. The parts about money management and trading plans will probably be very useful to you however I'd suggest reading all of it. Understanding TA will do you no harm whether you think it's right for you or not.

 

[fxfxforex]

demo account is the same as real account,you open and close positions according to the market prices except that in demo account you are trading virtual money so you dont risk your money,you are just practicing..and there is no margin call in demo account

 

[£10kLoser]

The main difference between a demo account and a real account is that when you are using your own real money, you'll trade differently! It's so much easier with play money but strong emotions come into play when real money is at risk and you'll be tempted to close trades earlier, not open others and your strategy can easily go down the drain under the fear of losing real dollars...

That's one reason why you need a definite plan and not a vague one like you have now.