Topic: ㅤ - page 3. (Read 769 times)
I think it will be beneficial if beginners will have demo account before doing actual trading to somehow assess himself on the knowledge and capacity he have if he will surpass and survive the volatile market and make profit from it. By this, they are somehow seeing a simulation of events on how does actual trading looks like to see by himself on what does he lack so he can make improvement from such weakness you currently have.
I do feel Demo account is fine if you want to know how trading works. How charts works, draw your prediction, testing out indicators, etc.
BUT
Like you said, it doesn't help you to learn when you do real trading. There is no such thing as managing your emotion, money management, fundamental analysis, liquidity etc.
It's true that if you want to learn, you can just spend small deposit into your account and work with it. It's much better than using demo account.
It works like internship, where you learn the way it works but it pays you nothing because you don't do it in real cases.
A demo account is very helpful when you are new to trading, I actually did this before but it has a huge difference when you are in real trading and when you are using real money. Because in this stage, there is something we created emotions and that most people got wrecked for they can't control it. But, you were able to survive this challenge, you'll be reaching your goal and succeed. BUT
Like you said, it doesn't help you to learn when you do real trading. There is no such thing as managing your emotion, money management, fundamental analysis, liquidity etc.
It's true that if you want to learn, you can just spend small deposit into your account and work with it. It's much better than using demo account.
It works like internship, where you learn the way it works but it pays you nothing because you don't do it in real cases.
TA's and FA's can't learn instantly but as we continue trading, we are also enhancing our self to understand that market trend and able to reach the chart leading to create good analysis.
I do feel Demo account is fine if you want to know how trading works. How charts works, draw your prediction, testing out indicators, etc.
BUT
Like you said, it doesn't help you to learn when you do real trading. There is no such thing as managing your emotion, money management, fundamental analysis, liquidity etc.
It's true that if you want to learn, you can just spend small deposit into your account and work with it. It's much better than using demo account.
It works like internship, where you learn the way it works but it pays you nothing because you don't do it in real cases.
BUT
Like you said, it doesn't help you to learn when you do real trading. There is no such thing as managing your emotion, money management, fundamental analysis, liquidity etc.
It's true that if you want to learn, you can just spend small deposit into your account and work with it. It's much better than using demo account.
It works like internship, where you learn the way it works but it pays you nothing because you don't do it in real cases.
.. And it is better to learn and lose $1-10 bucks in the real market than to learn to trade on a demo account, and then go to the real market and lose a much larger amount there. I would choose the first option. Learn to trade only on the real market, because a demo account teaches you false skills or does not instill them at all.
While I share most of your point of view on learning to trade with demo account, however. they nonetheless remain kind of a laboratories both for newbies, as well as experienced traders. Point is. every business has its secret, in trading it's neither exclusive with learning with demo or live account. but the wealth of knowledge one ends up with. And interestingly. it's also a possibility to also demo trade a live account by paper trading it.
.. And it is better to learn and lose $1-10 bucks in the real market than to learn to trade on a demo account, and then go to the real market and lose a much larger amount there. I would choose the first option. Learn to trade only on the real market, because a demo account teaches you false skills or does not instill them at all.
While I share most of your point of view on learning to trade with demo account, however. they nonetheless remain kind of a laboratories both for newbies, as well as experienced traders. Point is. every business has its secret, in trading it's neither exclusive with learning with demo or live account. but the wealth of knowledge one ends up with. And interestingly. it's also a possibility to also demo trade a live account by paper trading it. 
I just give my thought too, in demo trading the newbies are just giving an insight into what is in the trading and what is the scenario how it comes just the basic of each component it's just all about that. The real trading will just happen once they made risk to this trade. In demo trading, they don't afraid of how much demo balance they deposit and if they lose it's ok it's just demoed money if they win thinks it's just they easy as that. If they make real trading each time and decision they made it's all about the risk to win or to lose.
That's why for me Demo trading just for an insight into the functions is a help. If a trader wants to experience a real deal make a risk of your money.
That's why for me Demo trading just for an insight into the functions is a help. If a trader wants to experience a real deal make a risk of your money.
So a demo is not enough , you still have to work hard and learn technical analysis to be able to trade well.
Why did you even decide that for successful trading you need to study technical analysis? This is not the first time I have met such a statement on the forum. I get the feeling that people see in all these bars and indicators on the charts a common truth, without which success cannot be achieved.
No matter how it is. I know many people (I am also one of these people) who do not use technical analysis at all, but only use graphical analysis. For example, I only need to see levels on a 1D chart. And that's all. No moving averages and other nonsense, which, in my opinion, only clutters up the chart, I don't need it. I have been trading this way for the 4th year already.
Technical analysis is just one form of analysis, and no one needs to study it to be successful in trading.
However knowing it and seeing what the market is doing is a great help, most people who profit without TA just guesses the same thing, whereas people who know TA sees it, that is a big power to have. However we all could be wrong with just one tweet from Elon so it doesn't really matter.
The best approach for a noob in trading is to start with some small bucks, I quite agreed with the OP on that idea, there isn't any emotion in demo trading you just pull the trigger at will not mindful of the outcome of the trade.
Personally I started live trading in Binance with some bucks navigating from spot to cross margin trading just to get feel of live trading and to control my emotions of course I incurred some losses and made some profits as well and tried to correct my failed trades presently I don't entertain any fear in trading while following my strategy strictly with money management.
Personally I started live trading in Binance with some bucks navigating from spot to cross margin trading just to get feel of live trading and to control my emotions of course I incurred some losses and made some profits as well and tried to correct my failed trades presently I don't entertain any fear in trading while following my strategy strictly with money management.
In my opinion, whether or not one should try out demo account trading for practicing trading ultimately depends on the trader. I know of traders that started their trading careers by learning about trading then leveled up by using a demo account for practicing everything they've learnt and they did well in the long run. I've also seen traders who after trying out demo trading ended up having a terrible trading career. Every single one of us is different so the fact that demo account don't work for one, doesn't mean it won't work for another. The points made by @Ratimov are all valid points. I'm not trying to dispute that.
In my opinion, I believe it is very important and necessary to practice trading with a demo account as a new trader. You get to explore strategies without the risk of losing any money. You can test strategies and know which works best for you.
However, it would be unwise for a trader to believe demo trading is all there is to trading. I believe it's necessary to also practice trading with some amount of money one can afford to lose. That way, one would be under the pressure of losing money and that would prevent one from making unnecessary and irrational trading decisions.
However, it would be unwise for a trader to believe demo trading is all there is to trading. I believe it's necessary to also practice trading with some amount of money one can afford to lose. That way, one would be under the pressure of losing money and that would prevent one from making unnecessary and irrational trading decisions.
...Also, do not forget that it is on long-term trading that much more profit is obtained, and there are fewer risks, since you do not enter dozens and hundreds of trades all the time.
Long-term trading can be profitable only if you correctly determine the direction of the market movement. Otherwise, you can turn from a trader to a holder for a long time, which can be calculated in years. If you do not need to regularly withdraw funds from your crypto wallet to meet your needs, then long-term trading will be more attractive.
I think a demo account is actually good for a beginner trader because as you have said, there's no major obstacle which means that a beginner can purposely make big mistakes and learn from it without the worry of having to lose a lot of money.
beginner traders need a demo account, because there we can minimize losses from studying there,
yes many still don't have this feature, look at Coinbase, Binance and even Bitfinex also don't have a demo account feature,
I hope Binance opens this feature so that beginners can also learn without a risk
I think a demo account is actually good for a beginner trader because as you have said, there's no major obstacle which means that a beginner can purposely make big mistakes and learn from it without the worry of having to lose a lot of money.
beginner traders need a demo account, because there we can minimize losses from studying there,
yes many still don't have this feature, look at Coinbase, Binance and even Bitfinex also don't have a demo account feature,
I hope Binance opens this feature so that beginners can also learn without a risk
I think a demo account is actually good for a beginner trader because as you have said, there's no major obstacle which means that a beginner can purposely make big mistakes and learn from it without the worry of having to lose a lot of money.
beginner traders need a demo account, because there we can minimize losses from studying there,
yes many still don't have this feature, look at Coinbase, Binance and even Bitfinex also don't have a demo account feature,
I hope Binance opens this feature so that beginners can also learn without a risk
Majority of then doesnt have this demo feature but it would be great if they would be adding one because just like youve said on where it would really
be helpful specially to those who are just starting up to trade on where familiarizing everything from platform use until to trading basics when you
are just starting up but you can eventually learn up things directly even with real trade or deal up with the platform with real money
involved.You would really be more serious since you do know you are risking something unlike on demo trades.
Demo account is not a required thing to do but it is very advisable. I personally think that a demo account is not just to practice you how to trade but it also gauges you on how you will trade in the future. You can develop habits along the way on your demo account and it is bad to develop it using real money on trading. Beginners tend to experiment on trades, finding techniques to improve their trading skills but losses are expected on experimenting, It would be efficient if you experiment first on a demo account and if you find it useful you could apply it into real trading to avoid losses. Also, Controlling your emotion is the first thing to do in demo trading. Even if you have an unlimited amount of money on a demo trading account doesn't mean that you don't care about the results anymore, Remember that you are a beginner and you are there to practice gaining not losing. Putting a good mindset at the beginning will bring you good in the future
I think a demo account is actually good for a beginner trader because as you have said, there's no major obstacle which means that a beginner can purposely make big mistakes and learn from it without the worry of having to lose a lot of money.
beginner traders need a demo account, because there we can minimize losses from studying there,
yes many still don't have this feature, look at Coinbase, Binance and even Bitfinex also don't have a demo account feature,
I hope Binance opens this feature so that beginners can also learn without a risk
I would say it is necessary, it is not a must, it is not a forced thing, it is definitely not going to end up losing you money and you will become a good trader without it if you are sure what you are doing is the right way.
However if you do that, you are going to be better so why not do it? I mean if you can test yourself on a demo and then fail, you know that you need to study a lot harder, and that is going to be something very valuable. Why throw that away when you can just keep doing it? That is why I am not so sure about what to do, I want to say that demo is not a must and I said that but when something is so great to help you, I would say it is a "psychological" must? I have done it when I first started stock trading in 2010 and I am still using the same account and doing the same demo there, because why not? It is a fun game while being a good lesson.
However if you do that, you are going to be better so why not do it? I mean if you can test yourself on a demo and then fail, you know that you need to study a lot harder, and that is going to be something very valuable. Why throw that away when you can just keep doing it? That is why I am not so sure about what to do, I want to say that demo is not a must and I said that but when something is so great to help you, I would say it is a "psychological" must? I have done it when I first started stock trading in 2010 and I am still using the same account and doing the same demo there, because why not? It is a fun game while being a good lesson.
Demo account for exchanges are extremely good, I don't find any bad sides of it or negative at all besides the trading volume compared to the real market (this is already given).
Additionally, what's on my thought is the emotion will become different if a trader knows that he/she is trading on the demo account for sure. This time, a trader on a demo account could be more greedy since that money is not real, so this could be also handled if you are using a demo account.
You should start practicing risk management at the demo account so if you are already in the real market, you are already prepared.
Additionally, what's on my thought is the emotion will become different if a trader knows that he/she is trading on the demo account for sure. This time, a trader on a demo account could be more greedy since that money is not real, so this could be also handled if you are using a demo account.
You should start practicing risk management at the demo account so if you are already in the real market, you are already prepared.
Too bad that I switched back into long-term already.
Why is too bad? You have absolutely rightly evolved from a day trader to a long-term trader/investor. And that's okay. Personally, I think this is how it should be.
Everyday trading is very exhausting, both physically and mentally. Constant trading is very rarely profitable in the long term. Therefore, it is normal for a trader to move away from such exhausting trading for something longer over time. Medium-term or long-term trade. Also, do not forget that it is on long-term trading that much more profit is obtained, and there are fewer risks, since you do not enter dozens and hundreds of trades all the time.
You are right and also we do have all the control on what are the things we've been dealing with.It doesn't really matter if we do switch up between position neither a short term or long term as long you do know on what you are doing then that's important. Active trading is really exhausting and I do able to experience it out
and decided to make some swing trades instead since I don't have that enough time to make out preparations or analysis on dealing with the market.
Asking out if demo trades are suggested or recommended then I can say yes and for the sake of familiarity of the platform since majority of them
would really be just the same.
~
Now that TAs are mentioned, I recall back when I was day trading I only learned certain TA tools like Bollinger Band along with RSI.I cannot quite pinpoint already how did I use it but it helped me as a beginner in my day trading back.
Too bad that I switched back into long-term already.
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