Topic: Trading your strategy on DEMO is a waste of time - page 4. (Read 852 times)
Trying out your trading strategy on a demo is not really a waste of time for it is a preparation on how you are going to get into the real deal for you must be foreseeing what it feels like upon applying your knowledge that have been learned upon acquiring needed information on learning trading. This is somehow a simulation of what you can possibly do in a live trade assessing your capacity to do trading via demo. You will be dealing soon with a real money so you must build up confidence once and for all and demo can somehow build it up into you.
I see that everyone has their own opinion on this matter, but I probably agree, beginners should start with the demo version at least in order to have an understanding and get used to the tools. For example, to people close to me, I recommended starting with testnet.binancefuture.com along with some literature. I can say with confidence that the use of the demo version was appropriate, since during real trading newbies get the same knowledge as on the DEMO, (although they operate with funds that they subconsciously plan to lose).
As I understand, a demo doesn't really give benefit to traders because that is a demo and moreover the other term it's a practice trading.
That is a good amount to start and practice, but I don't know if $10 is enough to cover those high fees as of now, even ethereum was having terrific high fees. If you can afford and cover it all, why not, that is a good start in trading that should practice first before you will be going to the real battlefield of trading.
There's nothing wrong if you will try demo trading even at once and yes, there is pros and cons on it better to give it try.
That is a good amount to start and practice, but I don't know if $10 is enough to cover those high fees as of now, even ethereum was having terrific high fees. If you can afford and cover it all, why not, that is a good start in trading that should practice first before you will be going to the real battlefield of trading.
There's nothing wrong if you will try demo trading even at once and yes, there is pros and cons on it better to give it try.
Exactly, I also had the same thinking like everyone that we should trade on demo but when I saw that there is a big difference between the results in demo and real, I changed my mind. Still, demo gives a glimpse of how trading works and it should be traded on, before going live. I won't say you should do it for a longer period, but at least 2-3 months before going live. And like you told us, $10 is enough to try out a trader's capability if they are able to handle the pressure and keep patience while practising good risk management or not.
Not totally a waste of time since you still get some ideas on how a certain trading platform works. This is not about trading but this likely had a tour and familiarization, we can do more learning when we are doing the trade in real.
If others will say it is nothing but for the newcomers, it is big help then. But of course, it won't be enough to think that they are ready enough to do trading. They must have to do the live trading just to assess themselves if they are capable enough to handle the stress and market pressure.
If others will say it is nothing but for the newcomers, it is big help then. But of course, it won't be enough to think that they are ready enough to do trading. They must have to do the live trading just to assess themselves if they are capable enough to handle the stress and market pressure.
Demo trading does have its pro's and con's.
Pros.
Trade at No Risk While Training
Test a New Trading Strategy Without Risking Real Funds
etc.
Cons
Real Trading Conditions May Differ
You Might Learn to Overtrade
etc.
You can read up more here: https://forextraininggroup.com/the-pros-and-cons-of-forex-demo-trading/
Demo vs Live trading
https://mytradingskills.com/demo-vs-live-trading-accounts
Pros.
Trade at No Risk While Training
Test a New Trading Strategy Without Risking Real Funds
etc.
Cons
Real Trading Conditions May Differ
You Might Learn to Overtrade
etc.
You can read up more here: https://forextraininggroup.com/the-pros-and-cons-of-forex-demo-trading/
Demo vs Live trading
https://mytradingskills.com/demo-vs-live-trading-accounts
IMO, a Demo account aims to give you a chance to learn how to use the trading platform, not how to trade.
It could be both.But most likely you're right.
It is a way to try the platform by that person who has just signed up for that moment. We have those two thoughts about why someone has signed up for those demos.
And they're both good reasons and it's their time to spend, not ours.
If they are thinking that using demo account will help them to increase their knowledge then it's really good. Everyone
have their own explanation to why they use demo.
For most experienced traders it's understandable that they've got much deeper understanding knowing that they won't
be compensated financially by using only demo account.
No one's really going to benefit from it financially, experienced or newbie. Who's expecting something to benefit from it by using it?
IMO, a Demo account aims to give you a chance to learn how to use the trading platform, not how to trade.
It could be both.But most likely you're right.
It is a way to try the platform by that person who has just signed up for that moment. We have those two thoughts about why someone has signed up for those demos.
And they're both good reasons and it's their time to spend, not ours.
If they are thinking that using demo account will help them to increase their knowledge then it's really good. Everyone
have their own explanation to why they use demo.
For most experienced traders it's understandable that they've got much deeper understanding knowing that they won't
be compensated financially by using only demo account.
IMO, a Demo account aims to give you a chance to learn how to use the trading platform, not how to trade.
It could be both.But most likely you're right.
It is a way to try the platform by that person who has just signed up for that moment. We have those two thoughts about why someone has signed up for those demos.
And they're both good reasons and it's their time to spend, not ours.
I do agree that this do particularly focuses out on how to make use of a certain platform and not totally teach you to make trades but on the very essence that you could really
able to test out strategies that can hone up and could really improve but i do agree on most part with users here that nothing beats out
when you do make up actual trades.
Its not a waste of time if you do able to gain something from it.
something very strange that happened to me years ago:
a few years ago I decided to learn how to trade forex, I created a demo account and started practicing, funny that it was all very easy and I was able to profit from the demo account. I said to myself: "I am learning fast... "
as i was having good results in the demo account i decided to add funds using my bank card and started to trade... the first time i deposited $10 and made a profit of $12, i was very happy and kept doing trade and lost all money.
I didn't give up, I deposited $20 I made a trade and lost, I deposited $30 I made a trade and lost, I deposited $50 I made a trade and lost all money
I decided to stop, my conclusion was that the demo account for some reason is easy to deal with and make a profit, but in reality things are different
in the case of cryptocurrency trade I learned by practicing a lot and losing a lot of money
a few years ago I decided to learn how to trade forex, I created a demo account and started practicing, funny that it was all very easy and I was able to profit from the demo account. I said to myself: "I am learning fast... "
as i was having good results in the demo account i decided to add funds using my bank card and started to trade... the first time i deposited $10 and made a profit of $12, i was very happy and kept doing trade and lost all money.
I didn't give up, I deposited $20 I made a trade and lost, I deposited $30 I made a trade and lost, I deposited $50 I made a trade and lost all money
I decided to stop, my conclusion was that the demo account for some reason is easy to deal with and make a profit, but in reality things are different
in the case of cryptocurrency trade I learned by practicing a lot and losing a lot of money
IMO, a Demo account aims to give you a chance to learn how to use the trading platform, not how to trade.
It could be both.But most likely you're right.
It is a way to try the platform by that person who has just signed up for that moment. We have those two thoughts about why someone has signed up for those demos.
And they're both good reasons and it's their time to spend, not ours.
Actually there are some people who very careful with their money, trading in DEMO help trader to know whether their strategy is right or false. As a trader we also need to know the difference about trading and gambling. For me trading means that we are trade using right strategy, usually we test it first before we do real trading, while gambling in trading means we trading using strategy that we pretend it as good strategy without analyze data and test.
You are very right depending on how you do your tests, there are right ones and right methods and there are wrong ones and wrong methods. The problem with testing is that one thing that is right according to backtesting may not be right in the future, something that happened in the past may not happen the same way now, which is why I think it is quite important that we do not let ourselves go big time just because our baacktesting came back great.Even if you do demo and check what happens live, that doesn't mean that next month being great means three months later being great as well. So basically testing is very important, but we should not see testing as everything neither, there is something in between there. I say we should be using testing like something that is one part of the equation while taking care of other things as well.
I have no intention of riling up anyone, but as a learning trader it is good that we discuss facts with one another. The first truth is that there is no spare money anywhere in the world; every money are valuable. To improve your trading psychology, you must practice your trade strategies on a live trade; even if you start out with 10$; you need to feel the heat, be under pressure.
Trading is for individuals who can afford to lose money, so if you cannot afford to loose money; please do not trade. In trading we are here to multiply money and not create it; live trading helps you compound losses or multiply money; while demo trading creates money for you.
No risk, no reward; start practicing your trading strategy on a live trade; even if it is 1$; feel the heat and develop instinctively.
Trading is for individuals who can afford to lose money, so if you cannot afford to loose money; please do not trade. In trading we are here to multiply money and not create it; live trading helps you compound losses or multiply money; while demo trading creates money for you.
No risk, no reward; start practicing your trading strategy on a live trade; even if it is 1$; feel the heat and develop instinctively.
Thank you very much for the guide to losing all the money. First deposit lost, second, third, 5, 10, all money. Perfect.
Personally, I think you need to watch who earns how. If there's a $10 billion fund that does that, then you have to mark in notebook that smart/wealthy people do that. If the biggest person trading such a strategy is John with $50K from reddit - you should cross out that strategy right away and forget about it. Forever. Or let there, a million dollars. This is obviously a bad story. Or be prepared that at some point, even after losing 100 deposits, having trained and reread all the books on technical/fundamental analysis(Fundamental analysis is the only thing you can pay attention to, but you just have to buy the index) / esotericism / laying out tarot cards / astrology and other obscurantism, you will lose your deposit.
yeah, couldn't agree more with you.
we need to control our emotional and psychological aspects doing a trade. so far, it's the hardest part for me.
it's like you have 2 working minds inside your head. you have to follow one of them. it's difficult to define which one is better in giving you options.
even if you are really good in fundamental or technical, bad psychological conditions could lead you to a loss.
IMO, a Demo account aims to give you a chance to learn how to use the trading platform, not how to trade.
we need to control our emotional and psychological aspects doing a trade. so far, it's the hardest part for me.
it's like you have 2 working minds inside your head. you have to follow one of them. it's difficult to define which one is better in giving you options.
even if you are really good in fundamental or technical, bad psychological conditions could lead you to a loss.
IMO, a Demo account aims to give you a chance to learn how to use the trading platform, not how to trade.
I have no intention of riling up anyone, but as a learning trader it is good that we discuss facts with one another. The first truth is that there is no spare money anywhere in the world; every money are valuable. To improve your trading psychology, you must practice your trade strategies on a live trade; even if you start out with 10$; you need to feel the heat, be under pressure.
Trading is for individuals who can afford to lose money, so if you cannot afford to loose money; please do not trade. In trading we are here to multiply money and not create it; live trading helps you compound losses or multiply money; while demo trading creates money for you.
No risk, no reward; start practicing your trading strategy on a live trade; even if it is 1$; feel the heat and develop instinctively.
Trading is for individuals who can afford to lose money, so if you cannot afford to loose money; please do not trade. In trading we are here to multiply money and not create it; live trading helps you compound losses or multiply money; while demo trading creates money for you.
No risk, no reward; start practicing your trading strategy on a live trade; even if it is 1$; feel the heat and develop instinctively.
I don't think Demo trading is a waste time dude, because through this We can practice how to earn in the actual trade.
I know what you feel and I understand that, but I think you are giving it a wrong interpretation, it is actually helpful to any newbies
who will enter into trading business.
I disagreed with OP that demo is waste of time personally I had demoed on many strategies before sticking to my favorite one
^ It is totally different from demo trading while you are in actual trading, but it does not mean demo trading is useless. In fact, this is very useful when you are new to trading, I mean those newcomers in trading don't understand yet but they want to explore trading. But I agree with the OP, as a trader, should always having their own research and not all the time there is demo trading. Because in trading, not all the time you can able to make money, sometimes you will lose too if you did not have proper research. In trading, there is predator and prey, avoid not become always the prey.
Agree with your point though within my point.In conclusion, doing demo trading are for those who aren't familiar yet with the UI.
I had the kind of barricade when I was day trading in Binance. There were a lot of trading tools I could use, and pressing the wrong button could lead to an actual loss for me cause the terminologies are too technical for a newbie to understand, like what is a candlestick and all that.
You have a point with what you're telling.
But that's actually the point of doing demos. You can several strategies on it and whether it's a newbie or experienced one, it's okay to do demos for your strategy.
I get the point of what you say that you can really test yourself and a strategy through live and real money but demos are also a good place to start with.
But we need only to set some period of time to use demos and should have a courage to try it real since that's what the real trading is, that's the only time where we can earn and feel the pressure, when there is pressure, there is a chance that they will work harder to earn and to know how we can strive harder. The presuure will only be in real money and may not be in demos. But that's actually the point of doing demos. You can several strategies on it and whether it's a newbie or experienced one, it's okay to do demos for your strategy.
I get the point of what you say that you can really test yourself and a strategy through live and real money but demos are also a good place to start with.
I have no intention of riling up anyone, but as a learning trader it is good that we discuss facts with one another. The first truth is that there is no spare money anywhere in the world; every money are valuable. To improve your trading psychology, you must practice your trade strategies on a live trade; even if you start out with 10$; you need to feel the heat, be under pressure.
DEMO is made to be simple and easy to understand that attract traders to do trading. But if we are in an actual trading scenario, you will be sweating for sure. No risk, no reward; start practicing your trading strategy on a live trade; even if it is 1$; feel the heat and develop instinctively.
We need to work hard in order to succeed. And those people who are thinking trading is easy, they will find out when they are in the scene. Finding the most effective strategy is a big influence that affects the results of our trading. To develop our own masterpiece as a great venture that others can do and that constant practice makes us successful.
^ It is totally different from demo trading while you are in actual trading, but it does not mean demo trading is useless. In fact, this is very useful when you are new to trading, I mean those newcomers in trading don't understand yet but they want to explore trading. But I agree with the OP, as a trader, should always having their own research and not all the time there is demo trading. Because in trading, not all the time you can able to make money, sometimes you will lose too if you did not have proper research. In trading, there is predator and prey, avoid not become always the prey.
I had read a thread that is quite similar to this.
The point was that if you indeed lose your money, you will feel the actual loss when it happens to you.
Unlike when it is only a virtual trade like demo, as you mentioned, you'll less likely to take seriously on what's going on regardless on what strategy you do in your trade.
I guess back then, I didn't made a mistake. I wasn't even aware that there is such thing as demo trade.
The point was that if you indeed lose your money, you will feel the actual loss when it happens to you.
Unlike when it is only a virtual trade like demo, as you mentioned, you'll less likely to take seriously on what's going on regardless on what strategy you do in your trade.
I guess back then, I didn't made a mistake. I wasn't even aware that there is such thing as demo trade.
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