Forex Strategies

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My Forex trading world

• http//www.myforextradingworld.com/

MY FOREX TRADING WORLD
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Demo Trading vs. Live Trading
MY FOREX TRADING WORLD
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I got my brand new car after work and decided to
keep the commute a little bit longer. Instead of
using the tunnel and arriving home in half an
hour I thought it is a great idea to go back home
from George Washington Bridge and have some
quality time with this beautiful machine. West
Side Highway surprisingly had no traffic. As I
kept pushing the gas pedal, I started to feel the
wind stronger. I wasnt paying attention to my
speed it was just about feeling the wind and
feeling the freedom. I thought if I can push it
hard enough, I could fly the car.
MY FOREX TRADING WORLD
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Trading with a demo account, with play money is
like the dreams. They may seem so realistic and
vivid when youre in them. But you forget most of
them when you wake up. They have little or no
effect in the real world. There is no damage
control and they are not materialized. They dont
hurt your financial situation and this allows you
to forget them pretty quickly. As a result, the
learning curve with demo accounts is much slower
than the live accounts.
Another disadvantage in demo trading is the
simulation capabilities. Most brokers claim that
their demo trading platforms reflect the real
trading conditions with real tie prices. However
this is rarely the case if you arent trading an
ECN demo account. Demo prices and live trading
prices are usually the same under normal
conditions as advertised. But under volatile
market conditions, the execution prices in live
trading environments are generally much worse
than the prices you get with your demo accounts.
MY FOREX TRADING WORLD
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On the other hand, demo accounts may come in
handy under some circumstances. For instance, if
your experience in the markets is less than a
year, you should definitely start trading with a
demo account to learn the basics. If youre new
to a trading platform and using manual
executions, training with a demo account first
may save you from doing some operational mistakes.
If you have to test a new trading strategy which
isnt based on scalping methods, you should give
it a try first in your demo account in order to
prevent losses from unforeseen conditions.
MY FOREX TRADING WORLD
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ThanksFor Watching
MY FOREX TRADING WORLD