3 Ways to Help You Take Demo Trading More Seriously

Unless you’re some uber-genius who can predict what will happen in the next two minutes, chances are that you started your forex trading career with demo trading. There’s no shame starting with a demo account – it’s where all the pros first honed and developed the skills that made them mad moolah later down the road.

The problem starts when, after just a couple of months (or even just weeks) of demo trading, some traders start to slack off and not take it seriously. They think, “Why am I wasting my time on demo? I can learn this stuff with a live account! I gots to start making money!”

More often than not, these traders end up burning their first account, as they fail to develop the necessary skills, mindset, and discipline needed to successfully trade a live account.

Truth is, losing enthusiasm while trading demo is perfectly normal. It can be mentally taxing and boring when in the back of your head, you know that you’re not making any real money.

This is why I have come up with three exercises to help you take demo trading more seriously.

Feel The Pain

One of the main reasons why some traders decide to jump the gun on live trading is because they no longer “feel the pain” when it comes to demo losses. Others feel that they are no longer progressing, as they know that it’s just fake money on the line. They no longer take it seriously, and they end up making bad trade decisions and/or not practicing good risk management techniques.

In the long run, this can be very damaging to a trader’s development.

One way to counter this is to put real-life penalties on your trading mistakes. Every time you don’t follow your trading plan, you can do 10 pushups, wash the dishes, or even deny yourself your usual second cup of coffee, just so you can feel the impact of your trading mistakes.

This is very similar to what professional athletes do to push themselves to get to the next level. A basketball player may run a sprint for every missed free throw, while a tennis player may do 100 pushups for every service error.

This will help ingrain the losses and mistakes into your mind, helping you focus and pay attention to the task at hand, which is to improve with each and every trade.

Treat It Like An Exam

Another good way to help you take your demo trading seriously is to treat it like it’s a “trader’s final exam.” After all, if other professionals like law students have their bar exams and potential drivers have their drivers’ tests, why can’t traders have a “traders’ test?”

Though there’s no official test in becoming a retail trader, a profitable demo account is a good indicator that you have the trading know-how to handle live trading.

Join A Forex Trading Contest

The last, but definitely not the least option to make your demo trading more interesting is for you to join forex trading contests. Whether it’s being hosted by your broker, or it’s Forex Ninja’s Trade of the Week contest, joining a trading competition can motivate even the least competitive trader.

Of course, just because some contests offer prize money it doesn’t mean that you should ditch your well-crafted trading plans and bet the farm on your trade ideas! You can join a forex trading contest, but you must make sure that you FOLLOW your trading plan AT ALL TIMES. Just because you can risk your whole account while trying to win the prize money doesn’t mean you should. Demo trading is all about building good habits and best practices; trading recklessly just to win the contest just ain’t worth it in the long run!

  • Manzanofab

    The trading contest is a really good idea.
    If I tought about that when i started probably i will have done it more seriously at the begining saving me a couole of months 🙂

  • kotaogawa

    Nice article. I agree that we should try demo account before live. However, there is always different result between demo and live.

    • Siphocypriankhanyile

      how do i open a demo trading account,pls help

      • Hai Thanh Nguyen

        you could open a demo account on any forex brokers, go ask mr.google and mr.broker ^^!

  • jack

    I had  10 times demo account for 100,000 each time and i lost every thing
    i tried avery posible way. i couldn’t make money. 
    two month ago i oppeng new account for 100’000 my demo balance is 1,000.000
    I don’t use any stop lose, i don’t have any indicators in my chart i use fib ret
    and ext and money management.   

  • Still Learning

    I had the perfect motivation to take it seriously.  My wife and I agreed on how much money we would go in with when we went live and we wouldn’t go in until I had proven on the demo account I could consistently earn money over the long term.

    I tried a few different brokers, burned a few accounts until I realized I had to practice high arts of currency trading and employ money management, trade with discipline, set stops etc and not over ride myself and most important – get out when things weren’t going well for me and I wasn’t reading the market correctly.

    After I started doing this, I managed to start earning on two different accounts and yes, indicate to myself and my wife I could do this.

  • Tom

    I think another good way of keeping motivated is trading with live but using small leverage and buying small amounts of units. 

    I used to demo but i had the same problem of loosing motivation and more than that earning money and having nothing to show for it. 

    But i didn’t think i was ready to trade big bucks.

    So what i did was set up a live account that i could adjust the leverage and unit size and trade with max £10 at a time. I dont know if im allowed to post the broker i use.

    This gave me the ability to feel the losses and feel the wins. 

    I love it and it is really rewarding, i can feel myself learning so quickly its really strange. 

  • wirabayu06

    I like this article (maybe most of ur article ^.^).. And i prefer to choose feel the pain, even on the demo now… I wanna push my self to the limit!!

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