My demo trading (Path to success )

Appreciate your points but what we are trying to say is demo will not improve your trading style, money management and certainly not your discipline, which you desire to improve.

Way to learn is to start with a small amount of real money, if you start with 10 lakhs even after 10 years of demo you will lose all the money. Whether you practice demo or not DO NOT START with 10 lakhs, start with $500 if you are profitable over time add more money to the account gradually.

I really can't understand ...... you are knowledgeable enough from your statements to know its a complete waste of time yet you want to go ahead ?? if you believe demo will improve your trading style, mm and discipline that is a fallacy perpetuated by bucket shop brokers to get you hooked to thinking you will make money in a real account if you can do it on a demo

This is simply not true.

anyway wish you well friend, I think most people here at traderji want to see you succeed not fail that's why we are telling you this .....

please understand WE ARE NOT AGAINST YOU

PS>my friend actually he's more of an acquaintance hasn't made money on his own account either, as soon as he losses he goes back to demo thinking it will improve his trading, then he goes to live obviously loses as demo has no relation to reality then he goes back to demo again. Its a vicious cycle and he's unknowingly wasted years

Dear Aryabhatta,

Thanks for your kind reply and spared the time to answer. I never think you people are against me. Why should i think like that? You are trying to correct me from your point of view. I have some questions. Please answer.

01. Is it demo charts are different than real time charts in metatrader4 ?
02. If i make wrong trades i loose entire money in demo trading also. Market is punishing. Then where is the cheating? Several times i completly blown out my demo trading account.

As per my knowledge fear will not play in demo trading. Except that trade decisions & money management are same in real trading. Bucket shop brokers theory is not heard by me so far. Please explain along with above two questions. Awaiting your reply.

Total profit is 5,37,608/-

I will try to answer both your questions

1)Demo charts are in fact different from real time charts, in real time charts we often have slippage in order execution and my experience has been slippage is always against the customer never in his favor, we have requotes in real time charts but very rarely in demo charts, brokers have different servers usually cheaper slower ones for their demo customers as compared to their live customers, if you use MT4 which it appears you use their is something called MT4 virtual dealer plug in which is used by brokers to increase the spread at will, requote, delay, increase the spread if you're running out of margin, disconnect and many other things. It was developed by Boston technologies at the request of metaquotes themselves. Although Metaquoted denies this Boston Tech CEO himself has admitted to this.

Why do you think all the brokers like MT4? Because its a good charting platform? No ..... Its because its most user friendly towards the broker so many things they can do to put the client at a disadvantage. Most brokers trade against their clients there have been so many cases in court even from so called reputed companies like FXCM.

On the other hand demo charts doesn't have any of these advantages here in fact its the opposite you will get filled very easily oftentimes no disconnections no widening of spread etc this is because its in the brokers interest that you make money on demo so that you will think its easy and you open a live account with him. For you to open a live account is his objective.

2)See to answer question number two I'll try to give an illustration, say you put a long wooden plank on the floor and practice going from one end to the other, walking over the plank .... its very easy isn't it? After few weeks of practice you can do it effortlessly, but now put that plank between two tall buildings and try again. I guarantee you what you though was easy will be very very difficult and you will not be able to do it, even though you know how to. Because now your emotions are being tested, if you fall you will die or be injured badly. Even if you practice crossing the plank on the floor for years with your eyes closed you will not be able to cross the very same plank when it is high up between two buildings.

To have some chance of crossing the plank between two tall buildings you need to begin by putting the plank across some height and practice slowly then when your comfortable put it at a greater height and practice, once you're comfortable with that put it at the level of the first floor of two buildings and practice. This is how you should practice. You must test your emotions by having some risk involved.

Its the same for trading. Pretend trading has no value even for discipline and money management. You may know the theory of good money management but are you able to practice it when your hard earned real money is on the line? After you suffered 4-5 losses in a row? No amount of demo practice will help you in that.

That's why i urge you to deposit a small amount of live money say $500 and begin trading you will then hopefully agree with me.

you are reasonably capitalized with 10L so better start with $500 see how you fare ... if you are consistent add more money to the account gradually.

If you practice for demo even for 10 years and go live with 10L you will very likely lose it all. Then you'll think better i go back to demo and practice with good technique , mm , discipline etc ... and you go back and practice for another 10 years but when you come back there will be no change because you haven't tested or rather trained yourself to control your emotions.

Hope you at least consider what I've said, anyway this is my last post here I don't want to sound like a naysayer or discourage anyone. Just want to point out the facts.

all the best to you my friend (hope i can consider you a friend)

@ aryabhatta ,

I completely agree with you and would really appreciate your effort to explain things so meaningfully. Real trading with small account is 100 times better than Demo and this I can say because I have practically applied this thing in my Trading.

Dear aryabhatta,

Many thanks for the detailed answers you have given for my questions & considering me as your friend.

Thinking to close this thread and demo trading.

On seeing the reply for the above two questions, answer for the first question given by aryabhatta is very much clear and convincing. Thanks for him.

regarding second question, answer is given from the psychological point of view but there is no straight answer for my question i.e If i make wrong trades i loose entire money in demo trading also. Then where is the cheating? Several times i completly blown out my demo trading account. Cheating part of brokers is on meagre i.e delayed quotes, delayed execution of orders etc., when compare to our failures in trading.

If you don't know how to trade you will always blown your account in demo trading also.

After thinking what i felt, any how i will stop my demo trading within 6 months as per my earlier post i.e before 16th may 2013. Only 3 months left. Why should i stop in between? At least i will try to reach my goal of ten lakhs and 95% within balance 3 months and sharp my trading skills (ofcourse without fear factor).

So i would like to continue this thread and my demo trading for balance three months.

friends, please don't curse me because not following your advise at present, and request to give blessings for my trading success in real trading.

Total profit is 6,03,699/-
profit % -- 81.79

Demo account is good and we can learn always from the demo service.

Friends,

Since last two months i was not posted. My profits are going down to 97,881 from 6,03,699 due to my large taking positions and bigger stop losses. Now i changed my style and again my profits are reached to 3,46,467/-. This means several mistakes still i am doing. It indicates i have to learn so much in trading.