Ofcourse.
Sometimes I think some sort of real rewards (maybe inform points, rankings, etc) on the "virtual trading" or demo could encourage people to stick to learning, and help them learn almost like they would on the real ones. The rewards should be useful afterwards, and not something that is useless to you after earning them.
Topic: Virtual trading before actual one - pros and cons - page 4. (Read 755 times)
Virtual trading is important especially if you are new in the market, you will lose huge amount of money if you started with high capital with a a little amount of knowledge. For those beginners who will try to use virtual trading, make sure that you will treat it as your real portfolio. One of the problems that I keep seeing is a lot of traders are not treating the virtual trading as their real port where are just buying and selling without understanding what is it for. The good things is there are now exchangers that are offering virtual trading or what they called trading simulator in order to fully develop your skills. We can gain a lot of experiences through virtual trading so we should master our strategies first in trading simulator before we put our hard earn money or savings in different exchanges in order for us to prevent huge losses.
Yup that’s right, I have seen people who try virtual trading and they are giving fake $10,000 to try out the virtual, and when they try the demo they will be succeeding, but once they decide to get into the real trading they will start losing.
It is just like that, and from what I understand, when they are into that virtual trading , most of them are just seeing it as a guess work and they just be hitting that buy and sell button and things are kicking in randomly and profit coming, and they think that’s how it’s going to be in the real trading.
Even if they experience loss in the demo trading, they don’t really feel it and don’t care to figure it out since it’s not real money, they are just having fun until they get into the real thing.
It is just like that, and from what I understand, when they are into that virtual trading , most of them are just seeing it as a guess work and they just be hitting that buy and sell button and things are kicking in randomly and profit coming, and they think that’s how it’s going to be in the real trading.
Even if they experience loss in the demo trading, they don’t really feel it and don’t care to figure it out since it’s not real money, they are just having fun until they get into the real thing.
Why used a word virtual trading, just used its demo account.
Yeah, it's kinda misleading to use virtual trading because actual and demo trading are all virtual trading.
Anyhow, demo trading though is kinda helpful because we tend to practice trading, we make some realizations and learning about the right reading of technical analysis before we are going to do some actual trades. But it's quite different when we trade in an actual field.
We are trading in actual market volatility, we can see how whales are actually reacting in actual trading, we try to control the real fomo emotions, etc.
On the other hand, though practice makes perfect. But actual trading experience is the best teacher to become a better trader
I agree with you, that was the point of my thread to tell. I think it worth to get some experience with your bucks and this way you'll slowly adapt to higher bankroll. People usually directly move from virtual money to real high bankroll.
Yeah I just thought it was better to make it a little more explicit. I don't think it's mentioned very much that it's a good idea to move to a small amount of funds first and then start increasing.
Imo the balance you put on an exchange for trading with leverage shouldn't exceed 25-30% of your portfolio and if you lose it, you need to move back down.
I'd probably say the best option is to start at 1-5% then double it to 10, 20 and then 25 (or stick at 20) but only move up if 6/10 trades make a profit and your roi is still positive. It may seem tedious but you'll feel better afterwards than if you yolod with 30%.
I am a pro with virtual trading, especially for newbies who are new to the world of trading. Besides there is no risk,
because it doesn't use real money. Virtual trading makes our knowledge and abilities increase, this will be useful when
do real trading. I think cons people are just lazy to practice using virtual trading and find it unattractive if not using
real money. The conclusion is up to each person's decision, but I highly recommend using virtual trading.
because it doesn't use real money. Virtual trading makes our knowledge and abilities increase, this will be useful when
do real trading. I think cons people are just lazy to practice using virtual trading and find it unattractive if not using
real money. The conclusion is up to each person's decision, but I highly recommend using virtual trading.
I just skipped straight to using small amounts of funds.
I dumped ~1% of my portfolio at the time and started trading with 1-5% (~$1-5) amounts of that 1% to test how well I could do for profit, but I was also following signals, at the same time on a different account so I could keep track of sentiment and still make some sort of profit. I think I'd just have got bored of a demo account and 30 cents profit on a dollar isn't too bad of a win and the negative of that is a much nicer loss too.
I agree with you, that was the point of my thread to tell. I think it worth to get some experience with your bucks and this way you'll slowly adapt to higher bankroll. People usually directly move from virtual money to real high bankroll.I dumped ~1% of my portfolio at the time and started trading with 1-5% (~$1-5) amounts of that 1% to test how well I could do for profit, but I was also following signals, at the same time on a different account so I could keep track of sentiment and still make some sort of profit. I think I'd just have got bored of a demo account and 30 cents profit on a dollar isn't too bad of a win and the negative of that is a much nicer loss too.
There's the idea of "scared money" in poker. If you're playing with money that you're scared of losing, then you have already become attached to the bankroll that you're wagering. When you are making bets or trades, you are prepared for the worst-case scenario, otherwise you would not (or, for most people, should not) have performed the action.
That's one reason why some people like to hide their balance, so their behaviors are not influenced by any psychological factors during volatile swings.
A lot of people get the whole "emotionless trading" schtick completely wrong: you aren't emotionless. Instead, you're risk-averse and seeking to maximize your expected gains. This means deducing conclusions through reliable processes, and not falling for any fallacious thinking that can negatively skew one's perspective.
That's one reason why some people like to hide their balance, so their behaviors are not influenced by any psychological factors during volatile swings.
A lot of people get the whole "emotionless trading" schtick completely wrong: you aren't emotionless. Instead, you're risk-averse and seeking to maximize your expected gains. This means deducing conclusions through reliable processes, and not falling for any fallacious thinking that can negatively skew one's perspective.
Good example from poker. In most cases people aren't prepared for worst-case scenario and all they hope and expect is bright future. Then, when they trade with their bankroll and in case they lose, they are afraid that this bright future may broke and want to fix it as soon as possible to make their wishes come true but this is the time when emotions rise significantly and in most cases, possibility of making their wishes come true is abandoned.
You may think that you are "emotionless" in trading but at the same time it depends on your subconscious. Maybe today and tomorrow you'll act like "emotionless" but your subconscious will act emotional and may change your behaviors. It's just logical reaction/instinct.
To my mind that's one of the main reason why people usually start well with virtual trading and end up badly in real life trading and somehow this is one of the most skipped problem in overall.
You know that you are risking your own money and its really hard to control on what would be the emotions do come out and its just normal. Demo and Live is totally different
and you cant say that it would really be easy to kill off emotions since this one would be the main problem once you do make a switch up.It would be good if you do trade up with
real money but on a very small manner at least you do know and deal with the real thing without spending that much rather than doing demo and after that you do go all in
with trades just because you do saw that you do make big money with demo trades.
I would be against virtual/demo trading. I would just use them to get to know the features of the platform and get used to it. I would be relying on it to "learn how to trade".
Those are demo accounts and you know that. Hence, you even know that there isn't any risk of losing your money. So the trades you will be making won't matter to you.
But if you trade with real money/coins, trust me, you will be trading totally differently since this time "you will care about your coins". Again, you might build up some bad habits when trading in demo accounts.
I would rather start trading with small funds to gain real experience.
Those are demo accounts and you know that. Hence, you even know that there isn't any risk of losing your money. So the trades you will be making won't matter to you.
But if you trade with real money/coins, trust me, you will be trading totally differently since this time "you will care about your coins". Again, you might build up some bad habits when trading in demo accounts.
I would rather start trading with small funds to gain real experience.
I would say that if the virtual one is like the stock market in the investopedia one, that would actually help, but if the virtual one is like the bitmex one where it is a whole new market I feel like it is not good.
So, if you have a market that basically mimicks the same prices as the real crypto prices and you just buy and sell from nobody but just get in an out from the game with no other person required, as in no liquidity or whatever required, I would say that could work, but if you make it like bitmex where there are other people who have to make the opposite deals from you in order to make it work like a real exchange, that market could do differently than the real market because everyone has fake money so they are more free and that is why results could be different.
So, if you have a market that basically mimicks the same prices as the real crypto prices and you just buy and sell from nobody but just get in an out from the game with no other person required, as in no liquidity or whatever required, I would say that could work, but if you make it like bitmex where there are other people who have to make the opposite deals from you in order to make it work like a real exchange, that market could do differently than the real market because everyone has fake money so they are more free and that is why results could be different.
I see a lot of advice where people suggest each other to practice on websites where they can trade with virtual money. To be fair, I am in this list too among them but at the same time no one warns such people that it was it's pros and cons, more likely cons are outsiders while giving advices.
Pros: You trade with virtual money where your actions can't raise/damage your real budget, it looks like you spend money like nothing. This gives us possibility to test our skills and abilities in trading and help us further why we make mistakes and what we need to fix while considering the fact that the reason why I profit/lose is because you lose/profit.
Yeah, it sounds good but sometimes when we move on real life trading, things go wrong. We are always warned to leave our emotions outside while we are trading that includes: Not to panic sell, hold when there are harsh moments, etc. But we forget to mention another main emotion that we face in this situation: We trade with our money where we are responsible to results and these results may have huge impact on our life. Inside, in our subconscious, we worry about the results because we trade with our, real money.
To my mind that's one of the main reason why people usually start well with virtual trading and end up badly in real life trading and somehow this is one of the most skipped problem in overall.
This is basically my main problem with paper trading, without a doubt it is a great way to evaluate if your system works or not, it is also a great way to familiarize yourself with the platform that you are going to use to trade and without a doubt it will give you confidence that is necessary when you trade for real.Pros: You trade with virtual money where your actions can't raise/damage your real budget, it looks like you spend money like nothing. This gives us possibility to test our skills and abilities in trading and help us further why we make mistakes and what we need to fix while considering the fact that the reason why I profit/lose is because you lose/profit.
Yeah, it sounds good but sometimes when we move on real life trading, things go wrong. We are always warned to leave our emotions outside while we are trading that includes: Not to panic sell, hold when there are harsh moments, etc. But we forget to mention another main emotion that we face in this situation: We trade with our money where we are responsible to results and these results may have huge impact on our life. Inside, in our subconscious, we worry about the results because we trade with our, real money.
To my mind that's one of the main reason why people usually start well with virtual trading and end up badly in real life trading and somehow this is one of the most skipped problem in overall.
But the main issue is that you are not going to experiment the emotions that you will when you trade with real money and that is critical for your success, for example if the price of a coin begins to go down and your system tells you to sell because it has hit your stop loss you could be inclined to not sell your coins because you do not want to lose that trade, then you keep holding your coins thinking the market is going to turn around and follow your prediction only to discover too late that the price has crashed completely and your still holding your coins destroying your capital in the process.
Virtual or demo trading is just a platform create by exchange purposely for newbies or users to learn how to use some various features and to also be aware of the dangers in trading investment. However, it doesn't save the traders from losses because the vital thing a trader need is to know how to choose the right coin, have knowledge about the time to enter/exit the market.
Demo trading account will be good for training. There will be no pressure for you if you are just trying to experiment with an indicator that you are not used to. Its however very different when there is risk involve already like the real coins you have. Spot trading will just have the slightest risk.
The best that I did was to learn identifying the bottom in the weekly chart and start from there I guess there will be less risk in starting to trade from there and then move to a daily time frame.
The best that I did was to learn identifying the bottom in the weekly chart and start from there I guess there will be less risk in starting to trade from there and then move to a daily time frame.
I used some demos or practice platform to test my skill but to familiarize the markets and the tools and after that I immediately jump to trading with a small amount since I know from the very start that real trading and using virtual money is still different from the virtual money.
Starting small will not guaranty you success because your whole attention will still be on the fright of losing the small capital. While going live trading is important to make success you must have to practice to on demo a lot time to master the act of trading. And you should not tie all your material expectations on your trading because it will cause you to make irrational calls which can lead to you losing more and more. It is good to free your mind and invest only cash you will not regret if you lose it.
Yeah first time I too got confused when op mentioned virtual money and not the demo account. But after going through other posts it seems they are talking about demo account.
This so called practice account shall be considered as real only when we start trading. For me strategy works well when we just limit the demo account to what we have in pocket actually. I mean there is no point in making million dollar demo account. One should just limit it to what we have really.
Then you can see how fast you drain your wallet and loose all the money if doing it in wrong way.
It's far better to work around it as real account only.
But it's good knowledge to share.
This so called practice account shall be considered as real only when we start trading. For me strategy works well when we just limit the demo account to what we have in pocket actually. I mean there is no point in making million dollar demo account. One should just limit it to what we have really.
Then you can see how fast you drain your wallet and loose all the money if doing it in wrong way.
It's far better to work around it as real account only.
But it's good knowledge to share.
The idea of doing virtual trading is not only to test the strategies, it is also to test the site and learn how to manage it so that there are no errors in the platform when real trading with real money is going to be done, in part it is to learn each usable tool of the Exchange.
Why used a word virtual trading, just used its demo account.
I think the OP uses the world virtual because likes another world not close to reality.
There are real pros and cons with the use of trading but still at the end of the day outcome is the most important to do.
Yes on trading you can use demo which gives you a lot of ideas what are the things you should do and gives you a lesson without losing any amount of money do you have but the problem is you are having a problem with the real-time experience, pressure and fear those at the common things you are missing out. But still, the goal is to have the knowledge to have proper trading skills.
I used some demos or practice platform to test my skill but to familiarize the markets and the tools and after that I immediately jump to trading with a small amount since I know from the very start that real trading and using virtual money is still different from the virtual money.
Pinned this as a pros on trading strategy because this is the most essential thing why they have demo on their trading platform.
Yeah, there are various platform that offers a feature like that some called it testnet trading or just demo trading. Margin or futures trading right now has more risk than usual trading on spot so a practice might helps. Binance offers Testnet trading on futures, you can familiarize the interface and other stuff before trying the real one. Also, I find snapex have a demo accounts for beginners but if you are trying the real one try in your own risk. But trying the real one is so much different than the demo if you are risking real money it involves some emotions, etc.
Binance testnet trading: https://testnet.binancefuture.com/en/futuresng/BTC_USDT
Binance testnet trading: https://testnet.binancefuture.com/en/futuresng/BTC_USDT
I used some demos or practice platform to test my skill but to familiarize the markets and the tools and after that I immediately jump to trading with a small amount since I know from the very start that real trading and using virtual money is still different from the virtual money.
I am one of the people that always suggest people to make use of demo trading strictly to learn how to trade. Especially tools and features on trading platforms and their influence on their capital. I have seen situations where traders mistakenly sold a token far below trading price. This is because he did not know the types of order works. Emotion in trading is what you cannot take away. Even professional traders go emotional sometimes and it has an effect on the trading experience whether you are using demo or trading with your money
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