Demo Trading in Forex Training

I never thought nor appreciate the importance of demo until now I am trading with real money.  Forex is very unique if only for this special opportunity.  It is like the simulated flights for pilot training.

 

I am now properly making use of my demo accounts as it should be traded.  My earlier experiences with demo account were unemotional and detached, so the result was fantastic.  I brought that into live trading and got versely different result!!

 

Now every possibility must be tested.  Any deviation must be established and adjustments must be confirmed.  A single pip change could make all the difference and turn a winner to loser.  It is now a matter of rock-science and mathematical statistics:  Anything less is a disaster waiting to happen.

 

Trade Summary: now net 0% (great!!!)

Slow Path to Break-even

I am definitely returning though slowly. I had recouped some of my losses and gradually returning to original amount. The account is now down by just 4% and I am giving myself a big back-pat for that (who will if I don't do it myself).

Part of the adjustment I made had to do with my money management. I decided on a specific volume for each pair and stuck to it irrespective of the stop loss. Formerly I was using my capital and stop loss to determine my trade volume but it was costing me more losses despite good gains. A loss could amount to 100 pips for -$50 while a gain of 200 pips is only +$30. So with the new method, my gain or loss is the same and any trade with more than 150 - 200 pips loss is simply not for me.

I also take more trades now with more strategies both original and adopted (in fact I was surprised to see an improved version of the strategy I was trying to develop lately LIVE on a forum with very high positive rating!! Of course I quickly adopted it and started using it immediately)

I am willing to lose, willing to learn and determined to become a very successful forex trader. The retreat bridge had been burnt.....