When to move from demo to live forex trading?
One of the most common questions I get is when can one consider himself herself ready to move from demo forex trading to real currency trading.
Direct link: When to move from demo to live forex trading?
One of the most common questions I get is when can one consider himself/herself ready to move from demo forex trading to real currency trading. This is an excellent question and it's great that you are thinking about this before plunging in with real money. The thing is, there really isn't a definite answer to this question because it can vary from person to person depending on your background, experience, and trading philosophy.
If you are already experienced in day trading or have a strong interest in stocks, futures, options, etc. then you might be ready to move on to the next step sooner than the casual investor who is new to this whole thing. If you are more interested in long-term investing and don't mind a slower return on investment then you might also feel more comfortable starting with a demo account.
All I can really say is that if you are using the demo version of the forex trading platform for profit for over one month without having any serious losses or setbacks, then chances are you are ready to move onto live forex trading. So, if you have been consistently profitable for a month on a demo account and you still think you can handle the risks related to real money trading then by all means go ahead.
What could be the next month
If, however, you have lost more than 20 or 30 pips from your starting capital or have been faced with several challenges during your demo sessions then I recommend that you continue with demo forex trading for another month before moving on to the next step.
In general, I find it extremely beneficial to treat demo and live platforms as two separate activities. It's a good idea to take 1-2 weeks off from one and focus entirely on the other. This way you will be able to focus 100% of your attention on the task at hand and make maximum progress.
It's also a good idea to visit live trading sessions with an open mind and focus on understanding other traders, how they think and operate. I find this exercise very valuable because it helps me gauge the different ways people approach forex trading and learn from them. By visiting these gatherings, you will get to be around successful traders who are willing to share their experience with you and assist you in any way they can.
