Demo account in bets, Practise Spread Betting or CFD Trading
This doesn't apply just to spread betting but to any type of trading for all it matters forex trading, futures trading To me demo accounts are the devil incarnate and lead the newbie to the false impression that trading is easy. Let me explain why.
Demo Spread Trading...a viewpoint
On a demo account you never suffer from slippage or poor stop hits. On a demo account you never really have anything to lose - its always risk-free.
The no risk factor is the most important. No matter how seriously you take your demo account it will never affect the amount of money in your pocket.
Open a spread betting demo account
With a demo account your brain processes the information differently - it sees the big winners and ignores the losses and small winners. Your brain tells you - if I can get demo account in bets winners on here then I can get it on a real account.
Of course this is far from reality. Your brain knows the difference even if you try to convince it that its the same.
Free Spread Betting Demo Account
The first time you place a trade - even for a mini lot, a whole different set of connections open in your brain. You have the anxiety at the beginning of a trade - fears as price does its little dance and fears that your gains will run away.
When I started I had two demo accounts and I did very well with them.
However, I couldn't make it work with real cash. I find that you approach trading very differently when it's your actual 'hard earned' on-the-line.
Well, I am not going to harp on about this - but you know the story. Let me tell you what demo accounts are good for. Paper trading eliminates emotion.
Open a Demo Account
To ease into real trading, keep your position sizes as small as is workably possible. To put it another way, if you are becoming too emotionally involved in your trades, then your position sizes are too large.
Successful day traders have incredible discipline and nerve.
As long as trading remains a "hobby" as opposed to a primary income sourcethere's no pressure to trade at a level necessary to put food on the table, so you can focus on trading your plan, and percentages instead of dollars.
Your position sizes should be commensurate to your account size, whose growth should ideally keep pace with your confidence and experience.
Bonuses in the bookies: Free Bets and Demo Accounts
My recommendations for the newbie would be as follows: 3 Trade a demo account to grasp the basics of trading and then go live - preferably within 2 months of starting.
You will not make a lot of money but enough to help you feel something of what its like to really trade.
That's my best advice after several years spread betting. I've noticed this and would welcome your feedback.
I once worked with someone who said they would never trade live demo account in bets his system worked - well he traded demo for 2 years and built a fair system that made money. He then went live and blew the account.
Because although he was by that time a pretty good demo trader he could not trade live for toffee. The connections in his head had not been made in the real world and as such he had not evolved the emotional control that any trader needs.
In effect he was a total newbie again. This story is true and its not the first time ive seen it.
- How to make free sports bets in the betting shop?
- Spread betting demo accounts and simulators
This particular bloke took a further 2 years of live trading until he was in the same position again. Think on before you use a demo