I know this is a touchy subject but I stand by my words and I strongly believe that demohandel can after a long time damage your own live trading. Sometimes can trade on demo too long time to make profitable trading impossible.
In this article I will highlight the most important aspects you need to know about.
What is demohandel?
There really is a place for demohandeln and beginners especially should start trading on demo for the first time.
Get to know your trading platform
Understand how to perform a trade, how to set a stoppförlust and take profit
Calculate how to measure a trading, how to use the SL, spread, leverage and how it affects the risk and your account balance
Get a feel for the volatility, trading hours and the different time-frames
Experience the impact of various news events on the price movement
If you are new on the market, you must stay on the demo and figure out these things. It is important that you are familiar with all the basics and the technical so that you can focus on them in live trading markets.
Demohandel do not learn how to shop for
Now it gets a little difficult and we will go against the general handelsrekommendationerna. But then about 99% of the traders reading the same books and follow the same advice and 99% of the they get the same bad results, then maybe it is time to think about the general attetyden !?
The purpose of the demo account are NOT to learn how to trade. Profitable demoresultat never lead to consistent handelsresultat live.
If you start with a new trading system, it may be good to stay on demo for a few weeks to understand the system and the signals. When you are dealing with a new system you need to train your abilities and you will need to be able to identify a good setup. You don’t even need a demo account here, you can simply look at the charts and highlight the good signals and collect data. Or you can use a program to speed up the process. But you try not to act profittabelt on the demo and all you need to do is to try to develop a feel for the system, the new patterns and the new signals.
Demots result has no meaning – demo will destroy you
It is important that you do not stay too long on your demo account and you will need to start live trading sooner than you think. Most of the traders try to first become profitable on the demo before they go live. It is not important because the demots earnings play no role. And now we come to the juicy part of this article:
Reason 1: the Demohandeln provides no consequences
When you shop on the demo have your actions have no real consequences. A demoförlust does not feel good, but not as bad as losing real money.
When you become a better trader, you must know the consequences of your actions and you must take full responsibility for your mistakes if you want to grow.
Reason 2: the Demohandel has no emotion
Feelings and handelspsykologi is the most important aspect of profitable trading, and what separates the professional winning trader from the losing of these is the management of one’s emotions. In demohandel is them, the emotional effects are not present and the pressure that comes from seeing the unrealised gains will disappear when the price reverses.
Reason 3: Demohandlare play
This is now a very serious and dangerous problem with demohandeln. I have seen quite many traders who are doing the martingale on their demo account from $1,000 to $1,000,000 or made losses only to learn that you can turn a loss into a profit.
When the dealer tries such självmordsstrategier on their demo account and see that it can work for a certain period, he will likely try to do it on his live account.
Reason 4: You can’t treat demo like a live account!
Traders often say things like, ”I only treat my demo account as a live account” or ”I will manage my account at $100 as I manage a large account of $10,000”. Unfortunately, you can’t fool yourself so easily. You will always, deep down, to know that you are only on a demo and your 1% loss on a $100 account is just $1 and not $100 on a real $10,000 account.
All good intentions fly out the window when you hit the first wall in your live trading then you go back to your old impulsive trading behavior as ”you just are on the demo and this usually does not play any role”.
Reason 5: Demohandel will destroy your trading
The previous 4 paragraphs leading to this: a trader remains on the demo for a long time will eventually destroy his trading style and his negative behavior is becoming more significantly.
After a few months on the demo, especially if you’ve never traded live before, you will transfer all that you have done on the demo to your live account. If you have been undisciplined or unstructured, will your live account quickly to bleed out. It is very difficult to read, the bad behavior, and most traders will just go back to the demo to continue and repeat the same old path.
I know this is a lot to digest for most people because it challenges everything you have learned so far. Thus, I want to give some tips on demohandeln:
-Learn the basics on the demo – As a new trader, the first few weeks are spent on the demo until you understand how everything works
-When you start a new system, stay on the demo (for a short while) until you know how to find the business and what qualifies as a signal
-Switch to live trading as soon as possible
-Start with a sum in the account that you are willing to lose
-At one point, you must make the decision to finance a major account where the losses will give more damage
-Be sure to follow your actions: don’t you Care about the small losses? Not follow risk management and positioning? Find out why you are doing it and recognize the patterns in your own trading.
-Obviously you should not trade with money you cannot afford to lose and trading is very risky, but you have to take that scary step sooner or later.
-To pop live accounts or lose money can in a way be seen as a tuition you pay for on the market. You need to make sure that you learn from your mistakes so that they lost the money after all, will have a positive effect.