When to go live ?
You go live when you accumulated enough trading experience through demo trading which can be different for each one of us. The thing you should definitely build before going live is confidence in you and your trading system.
You go live when you accumulated enough trading experience through demo trading which can be different for each one of us. The thing you should definitely build before going live is confidence in you and your trading system.
I do agree with you on that.. Most of traders advise to demo trade first before going live.. But why is it that there are others who think that going live is better than demo trading for the reasons that demo gives false confidence in the trader's abilities and the brokers performance(i've read it in other forum)..So what makes me wondered on what really is best most especially to a newbie like me..?
I think newbies should open a small real-money account to have fun with forex while learning. I had had a $1,000 real-money account just days after I discovered forex, and I blew half of it for blind speculations. Although I lost, I was satisfied with my trading, since I traded in forex for real. The experience was real. Winning and losing were real. Emotion was real. Had I trade on demo, everything would have been fake and dull. I would have had no real motivation to pursue forex trading.
So after I blew up half of my first account, I waited for the right moment to fight the market back--No i don't mean I wanted to win my money back. My goal was to make a lot of money, not to get back what I lost. I had to learn more. I needed good strategies to fill up my blanks that made me lost. I followed some free systems, test run them on demo accounts, until I went live when I was confident that my system's working consistently for several months. At least I must know first that the profits are made by educated trading, not by some kind of luck or randomness.
Demo saved me thousands of dollars. If I were to trade the systems with real money, I'd have lost a lot. I used demo to try out many systems made by forex communities, and I made revisions so on and so fourth until I got a profitable system. In short, demo accounts are good for trying out ideas and systems. When the system is consistently profitable, I run it live, first with small mini lot for several days and increase to 1 standard lot shortly after.
The bottom line is if you have a thousand bucks to spare (lose), deposit it in a real trading account. Make good use of the money by trying out the strategies you have just learned (i.e. moving average crossover, support and resistance, trend line, Fibonacci retracement, other indicators, etc). If you lose, come back here and learn more until you have managed to up up up your equities.
It is very difficult decision as to when to go live for a newbie
I do agree with you on that.. really difficult.. But i guess, as far as forex is concern, it takes a lot of practice and patience to be able to reach the goal..
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I've been demo trading GBPUSD and EURUSD for some time now with a 20 pip per day target. However, I've been averaging 30 pips a day.
Worst day was a 26 pip loss, a day when I was full of cold and probably should not have been trading at all.
The question is, when do you go live ???