Trading Forex On Demo Could Get You Blind. Enlightening Opinion

Why does Trading on a Demo Account could get you Broke?

I think that every single trader started his journey in the Forex world with a demo account. I know I did. Practicing with virtual money before using your savings should help you know better the trading platform and the broker but mostly…the market. When you are a newbie, you think that the market is like a hot girl and you want her in your bed. However, being a “newbie” you have hard times trying to invite her over, so you go on “demo” using your thoughts, or your very own body parts. Boy, if you think that Forex trading is “demo” trading you are dead wrong. If you think that more demo trading will get you more experienced, you are wrong again. The question is: do you want to get laid or die trying?

 

How you can go Broke from Trading Forex on Demo Account?

Don’t get me wrong, I think trading on demo accounts is very useful and that you need some time to get used with this new “thing” named Forex, but I also think that masturbating is not the same as having sex (pardon my French). Well… you feel pleasure and reach climax on both case… However – and correct me if I’m wrong – the pleasure is far more intense when caused by a woman (sorry ladies, this is written by an ape… I meant a man) than by your very own hand. That the reason if you keep trading on demo for long time, you could get blind. Wait…that was for something else and it’s only a legend…they say. But I should ask Forexit – this is the nickname a trader uses on Babypips.com forum [1] – as he said he is doing it for more than 6 months and now he feels ready to get out there and grab a real woman – sorry, I wanted to say a real money account. And Forexit is not the only one in this situation as I keep seeing on various forums. Traders advising other traders to practice more on demo before going live or even to start with as little as 50$ – 200$ real accounts. But this is crazy. Even if someone advises you to go longer on demo, and even if that that person is an experienced trader, why should you follow him? As George Bernard Shaw (Irish dramatist and co-founder of London School of Economics) said, “why should we take advice on sex from the pope? Even if he knows everything about it, he shouldn’t.” The demo accounts are not offering EMOTIONS – greed, fear, hope and other feelings. They are pushing the traders to take irrational decisions, which could cause them losses, or booking only small profits while their initial take profit order was larger. Others might get broke, I’ve seen them going. The first few trades you’ll place on a real money account will make you sweat in the same way as “your first time with a woman” made you. And even the second time, with another one. Besides that, the demo account will never make you over-trade. How many times you happened to be over-confident after a series of good trades and instead of taking a break you go for another trade and another, and another one more time… the only difference is that this time you are losing money. You are losing the profits you just made a few hours earlier, or you’re losing everything you’ve got. This never happened when you were trading on demo, isn’t it?

 

 

Conclusion – Use Demo, Do NOT Over Abuse It.

All sex psychologists say that every person needs to know itself and to know his or her own body, and that masturbation is a good way to do. But do not abuse it. I think it works in the same way with the Forex demo accounts. Too much demo really sucks and will never prepare you for the real trading. Trading demo too much time won’t make you a better trader but a better loser. Once you know how to use the tools on your trading platform and you have the basis of the trading, close the demo and get on real money. You don’t need six months for that. Think it in this way: if an average human life is 70 years, no one needs more than one single year to learn how to walk. Here are a few tips for you:

  • Even if you are on real money now, you can still use the demo to test a new strategy (strongly recommend to be your own strategy and not someone else’s) or you can use the demo to test how a new instrument acts. For example when Bitcoin was launched, the demo account was a better choice than the real money account, to see how BTCUSD is trading.
  • If you like the automatic trading, you can use the demo to test the EA you just bought or maybe build one yourself.
  • When you start to trade on demo, at least ask your broker to make the demo as big as your future real money account. Is really useful to trade 50000$ on demo while you will only deposit 1000$ when opening the real account.
  • Even if you trade on a demo account, – meaning simulated market conditions – I suggest making realistic assumptions. Use a margin of one up to five pips when you place your entry, stop losses or take profit orders as in the real market conditions quite often happens to see them executed at a different value than what your set ups – especially for entry orders.
  • The simulated trading environment does provide a trader with the opportunity to get used to the software he will be using or with his broker’s trading conditions. Use the demo account only for this purpose and do not try to build a reputation by linking the account on websites as www.myfxbook.com or www.fxstats.com because no one cares how good you are on demo.
  • Least but not the last, try to avoid the demo accounts with unlimited use. If you can’t stop to trade on demo your broker will, by denying you the access to the demo and inviting you to open the real money account.

 

References

  1. Babypips.com How Long Have You Been Trading
Have We Saved You From Going Broke?

Tell us, did we rescued you ?

Post a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>