After reading our previous article that tackles about the importance of using demo accounts, you might have realized that trading in a demo account is of a great help if you want to be successful once you go live. The question is: how long should you stay in a demo account before you start real trading? Let us give you our view in this matter.
Personally speaking, you should not stay in a demo account for too long. Once you’ve familiarized yourself enough with the market and the trading platform you’re currently using, it’s probably safe to start going live.
In reality, too much of anything is never a good idea. Staying for too short of a time may put you in a great risk once you go live as you might not have acquired the proper amount of knowledge and experience yet. However, staying too long in a demo account might also be a bad idea, as doing so will not help you grow as a trader, since there are a lot of things that you can only learn by trading with a live account.
If your goal is to consistently make profits in trading, then you should proceed to live trading as soon as you’re ready. The most effective way to tell if you’re ready to proceed to live trading is if you are able to double the size of your demo account and profit consistently without having to rely on luck and coincidence. Once you’ve gained enough experience and trading confidence, then you can start going live and try making profitable trades.
However, being ready to go live doesn’t mean that you should start risking a large sum of money right away, even if you have a lot to risk. If you are only starting to trade on a live account, you should only start with the amount of money that you literally don’t care if you lose or not. It is very important to begin with a small amount of money first, to give yourself time to get used with the way the trading platform works on a live account vs. how it was on the demo account.
Then as you progress and gain enough confidence and trading experience, you can slowly increase your risk per trade to an amount that matches your trading expertise and risk tolerance. From here, you will start to learn the things you need to be successful in trading, like how to control your emotions, how to handle losses etc.
Remember, you will experience some losses once you go live, but that is pretty normal. Losses are inevitable in forex trading, and even professional forex traders experience losing trades at some point in their trading journey. What’s more important is how you handle your losses and how you adjust your strategies to limit the risks in your trades.
Further familiarize yourself with the forex market and learn more about forex trading by reading our educational forex articles. See who the best forex brokers are, visit Wibestbroker.com to find out!