brewski1984
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I might give a couple of those challenges a go one day, seems like an interesting way to spend an afternoon (I'm boring like that).
No experience- do not to start real trading
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Hakuna Matata
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It's important that you frame the exercises in such a way that your actual trading can relate to... for instance with regard to the times exercises, a 5 minute window isn't really anything if you're trading from 5 minute graphs. You've got to have enough "information points" to make decisions.
But I mean you can change the exercises to suit.
tar
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I heard that about the DAX a couple of times , the problem here is the tick size = 25 euro/point is big , plus the DAX is volatile , so 100-200 points offside in one day is more than normal , IMHO one should start with a different futures contract or with mini CFDs ...
You can trade 50p per point with my spread co, and my opinion on anyone who cannot afford that, is clear.
He cannot afford to trade.
Leave trading alone because, after trading with demo, what do you do? Start live trading with larger amounts?
Now, that is crazy!
Because I believe that no matter how well you do in a demo account it is useless when you go live. I know our opinions differ and traders should do what they feel comfortable with. As long as it works for you who am I to tell you to change and vice versa?
I am not here to convince traders to change their approach, simply state mine and new traders can decide what they want to do. At least they have opinions from both sides which is what we are here to do, right?
Shakone
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Suppose you are a professional sportsmen, lets say golf for the sake of argument. What would you think of the advice that there is no point taking any practice swings, no point practicing putting or driving, that you should only do those when you're in an actual tournament when there is pressure and money is on the line?
Good point Rambo -many people have a shock when they experience the effects of risk upon the mind.
Definitely, and then they wonder why. How many times have we seen threads where traders ask why they failed terrible in their live account after doing so well in a demo account for a long period of time.
It's like people want to learn how to drive and claim they gather experience doing so in a video game at home. It does not prepare you when you are actually out there on the road with other drivers in real life.
That is my opinion which is why I always advise against demo accounts and prefer at least a micro-account. $100 for my education is how I viewed it when I went from learning by reading to opening an account.We can all have a different opinion which is how markets are created.
Of course you practice, but you do it on the golf course in real life. Your comparison is like telling a pro-golfer to practice playing a video game where a controller is used. You can practice playing golf in a video simulation all you want but when you step on the golf course it did not help you. A demo account is like a video game.
I don't want to advise anyone to start trading without a demo, if they feel better by using one but I repeat what I said earlier, If one cannot afford 50p per point then he, really, should not be considering taking up this most worrying of pastimes, hobbies, gambling --- call it what you will. A 10 or 20 point loss, too many times, will give you more to think about than playing around with a demo, including whether one should give up a good job in order to do it all day.
A demo is nothing more than a hook to show people how easy trading is and, when it has been swallowed, the dealer will wind him in. The demo trading, that seemed so easy, then, does not teach what it is like to take a fair-sized loss.
Whatever anyone does, use the smallest stake you can find for starters. It took me a longer time than I thought it would to increase my stake size, but I am a very cautious individual.
Just take care and Good Luck to all newcomers.
A demo is nothing more than a hook to show people how easy trading is and, when it has been swallowed, the dealer will wind him in. The demo trading, that seemed so easy, then, does not teach what it is like to take a fair-sized loss.
Whatever anyone does, use the smallest stake you can find for starters. It took me a longer time than I thought it would to increase my stake size, but I am a very cautious individual.
Just take care and Good Luck to all newcomers.
Steve
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Very well put. I would not suggest abandoning demo's if they are serving a purpose and of course we'll all have differing views of what works and what does not. The key thing is the question of purpose and that one day you will have to leave the demo behind.
I have known lot's of people over the years where they are always refining their approaches in demo mode, are really successful paper traders and who always want to attend just one more seminar before taking the plunge.
Don't be one of them.
And good luck from me too!
I have known lot's of people over the years where they are always refining their approaches in demo mode, are really successful paper traders and who always want to attend just one more seminar before taking the plunge.
Don't be one of them.
And good luck from me too!
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Well you can trade micro or mini lots on forex.
Mini lot = 10 000units = $1/pip
Micro lot = 1000units = $0.10/pip
Ill suggest micro it will limit your profit/loss to manageable level simultaneously giving you feel of making money but dont get carried away and increase size before you get confidence in your trading and trade management skills.
Mini lot = 10 000units = $1/pip
Micro lot = 1000units = $0.10/pip
Ill suggest micro it will limit your profit/loss to manageable level simultaneously giving you feel of making money but dont get carried away and increase size before you get confidence in your trading and trade management skills.
Shakone
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I believe it's true to say there is a certain level of learning that can only take place when you're trading for real money. But you can also learn the wrong things too. And I'd suggest you're more likely to learn the wrong thing by putting money on the line on a trading system that probably isn't ready.
Aspen Trading Group
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While it was likely said earlier in this thread somewhere - demo accounts completely take the emotion out of trading. Emotion, i.e. euphoria and despair, are more problematic to any trader than the actual entries and exits.
If you can trade mico-lots for .10 a pip - there is no reason to start with a demo account - get in there and swing at the pitch.
Shakone
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I disagree. The first thing to overcome is costs - spread and commissions. Since 95%+ don't make it past that, the emotional side is irrelevant to them. I'm sure they'd like to blame it for all their misfortunes, and discuss how important it is, but the chances are, they have no edge.
For those that do have something which overcomes costs, then you're right, emotional issues could be a problem. And one of the ways to overcome these somewhat is to build confidence in your trading methodology. Backtesting is one way, forward testing another way. You should do both if you can.
Yes demo accounts take some emotion out of trading. GOOD! That's what you're looking for when you're trading for real.
For those that do have something which overcomes costs, then you're right, emotional issues could be a problem. And one of the ways to overcome these somewhat is to build confidence in your trading methodology. Backtesting is one way, forward testing another way. You should do both if you can.
Yes demo accounts take some emotion out of trading. GOOD! That's what you're looking for when you're trading for real.
Exactly Eurex. I have always told people that they should open a micro-account an learn to trade there. I think if you can't afford to invest $100 in your education you should not trade to start with.
I dont get this emtional bull**** argument. The only time emotions ruin your trading is if you are trading too big. The only thing that matters in trading is size. It's the killer of everything. Think of any failed trader and why they failed. It's size every time.
The solution is therefore pretty simple.
The solution is therefore pretty simple.
new_trader
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I agree. Demo is used to test a methodology in order to ensure it is sound before committing any money to it. How anyone can think that there is a difference between a micro account and demo trading is beyond me. Do you really believe that trading 10¢ a point will prepare you for trading $50/point....really?
