Welcome back readers, let’s talk about demo versus live trading. When you set up your first trading account,and we’re talking about trade sizes and,we’re talking about pip values and, the big question on most people’s minds when we get to this stage,is should we trade with a demo account versus a live account? A demo account is a fake money account and it’s absolutely free from your broker and it allows you to get set up and learn your trading platform and it looks exactly like a regular trading account.
The quotes are the same and the trade execution is largely the same and you can put a robot on a demo trading account you can take trades in a demonstration trading account you could do all the same things that you would ordinarily do in a regular live trading account. It’s just a demonstration account and your broker will direct you to how to download a demo trading account usually when you logged in to your favorite FX dealer or FX,broker or dealers website, they’ll give you links to download a demo account and they’ll give you the option of how much money you want to put in your demo trading account. So a demo trading account is a simulated trading experience and it’s really good,because it teaches you how to get familiar with your trading software and shows you how fast the market can move.
You can learn how to press the buttons and take orders and all that other kind,of good stuff that we’re going to teach you. In demo account, there is no emotion,whatsoever no consequences. If you make a mistake and you can make all kinds of wonderful mistakes. Some people say that demo accounts are worthless because you’re not feeling the same emotions, you would feel with a live trading account,however,it’s never a good idea to trade live if you haven’t ever done any trading before. So it’s better to practice on a demo account. It’s a great place to practice and get set up and get started.
Now a live trading account is everything that it sounds like. It’s a live money account with real money inside and real consequences. When you trade live I think if you demo trade for 30 days or so it’s a great idea and then you can move on to your first live trading account and I would recommend that your first live trading account have at least $1,000 inside. So you can trade one micro lot for 10 cents a point or pip and not feel really any strong emotion about that but you can work up your courage with your trading now. Most people are gonna ignore everything,I just said and they’re gonna go open up a live trading account and they don’t want to miss any opportunities they’re gonna trade with the largest trade size they possibly can and they’re gonna blow up their trading account and most people are gonna do that because of margin and,leverage. Remember forex trading carries significant risk of loss. Terms and conditions will apply. I’ll see you in the next one.