Today we’re going to be looking into demo trading. How long should you demo trade. I mean, I get that question all the time. Okay. Forex apostle, how long can I demo trade? Can I demo trade one day, two days, two weeks, six months? And of course, I also see some people. They have never traded before and they bought the system, either they bought expert advisor, or robot, or a system or a custom indicator and they put it directly on a life account.
I also see some people, even if you’ve being a pro-trader for a long time, immediately your bought a new system even though you bought a new system or a new system, or you bought it, new anything, new software, new strategy you are supposed to demo it first. Okay. So the question now is how long should you demo trade?. It doesn’t have black and white answer. It depends on you. It depends on your confidence. Why are you demo trading in the first place? You are demo trading in order for you to get your feet wet with the market, in order for you to perfect your skills in order for you to master your skill and understand what you are doing.
So even if you have go life and you are trading life account, and it happens that things are going wrong, then it is time for you to pick a pause, and go back demo trading. You know, I say this over and over and I will repeat it again. If you’re not making money in demo account don’t expect that you are going to make money in life account. It doesn’t work like that. Okay Because you have to have understand that the kind of attitude that you attached to your demo account is what you are going to attach to your life account. So I tell people, treats your demo, even if you are demo trading right now treat it as if it is life account. If you are going to go live with five hundred dollar account, you don’t start a demo account with a hundred thousand account.
If you are going to go life with $1,000, you don’t go life with $10,000. You have to demo trade. Remember you are demonstrating what you are going to do life. That is the purpose of demo trading. Then let’s say you have been trading for a while and all of a sudden started losing, then take a purse, ok, take a purse and go back to demo trade your strategy may be something has shifted. Maybe you need to, you know, reorganize yourself. And that is the purpose of demonstrating that your life account is there.
That’s you have money in your life account does not means you have to trade it all the time. Sometimes markets misbehave, sometimes market goes up and down. I mean what to do when you do know what to do is to just stand still, still go back to demo trading. Perfect your skill. And especially when you go to some loser strings, you just lost some money.
And you seems like, okay, you are now having apathy for trading what to do at that time is to put your life account on hold and start demo trading for you to regain confidence. I mean, I hope this is really making sense. Now I get questions, and comments by the reason of what I do. And the one of them is, Oh, I have lost some money, they loss of money and they now borrow some money and use that money to pay back all the loans they’ve taken and they just need forex apostle to make that wonder.
You need to understand that if you have lost some money before due to trading, theirs something that might be wrong. Maybe you are. You are not, you are not there yet. Maybe you just need some mentoring. You need some coaching. You need some guidance. Some guide, you cannot get us cures from jumping from one video to another watching different, different people, different strategies, and you are trying to trade different strategies. You will see almost about 10 – 15 different currency pairs on one single day.
Even if you are a scalper, even if you are scalping, the essence of scalping the market is pick one currency per year, maximum of two, but I prefer one. If y’all been following me for awhile now for the past one month, I’ve been focusing on EURO USD. If I want to trade indices, I focus on indices. If I want to trade whatever, I pick one currency It’s mixed me to understand that currency. It makes me to understand how that currency is behaving.
Even if I sleep, I can tell you, this is what this market is doing because I’m focusing on just that, you know, on just that one currency pairs. You know I’m a pediatric nurse. And when I used to work, you know, full time taking care of kids, I will not go to work on Monday, take care of a child, go to work take care of another child on Wednesday, take care of another child, thursday take care of another child, and on Friday take care of another child. I wouldn’t understand those kids. I would not understand them. So the same thing is trading. When you pick one currency, demo trade it till you understand that currency the way it working.
How long should you demo trade? It depends on you. It depends on your level of your understanding. It depends on your level of assimilation. It depends on, the resources you have at hand. I see so many people they want to rush to open live accounts, why they’ve not even understood what they are doing. It doesn’t make sense. The market is not going anywhere. You don’t need to rush yourself, you know, give the bears and the bulls that small money that you have. So the purpose of demo trading is for you to really really understand what you are doing.
Even after you have gone live and it seems as if you don’t understand what you are doing, then go back and demo trade again. I have a student that has been demo trading enough for about two years because is a students. And of course, he’s sharpening his skill pending the time he will graduate. I have some they would just demonstrate for like one month and they go live. I have some that don’t even want to demo trade at all. I don’t recommend that.
Now lets assume you are starting, you don’t anything about forex and you are following the lessons. You are following the instructions, you understand what you are doing, your winning is good. You have monitor your emotions and all those things are in place.
So how long can you demo trade? Well, I will say average of two months, two months, if you have a consistent, you know, winning or system profits, and you focus on one strategy for two months, two to three months and you have consistency, okay, then you can go life. And when you are going life, you don’t even if you have $100,0000, you don’t push all your one hundred thousand dollars to your account.
Okay You can start with $500 or depends on where you are. You start with $500 when you see how you grow that account. Let me launch, am a visual person I love to share my screen. Let me share my screen. Let’s say you have a $500. Let me work with $1,000. It’s easy for me. If you are $1,000 account, most traders, okay, we want to double this $1,000 a week.
That is why you lose money. You need to understand that 20% okay of this $1,000 is $200. This is average that people makein a whole year. Now, what many forex trader try to do is to make this $200 if possible in one day. It is not that may be it’s not possible. I’ve done that. I have students that are doing that, I have friends that are doing that. That, Oh, the problem with this strategy is you are, you will be over leveraging this account and the day this goes against you, it’s going to wound you serious. He’s going to wound you. I mean I recommend risking 1 to 2% of your account. If you’re risking 1% on your account, or your account is $1,000. If you are risking 1%, you are risking 10%.
If you are risking 2%, you are risking $20. So that means when we talk about risking, it therefore means where your stoploss be, okay. From here to here, this would be $20. That’s what that means. Okay. So if you have a $10,000 account and you are risking 2%, it means you are risking $200, that formula from year to year. So even if you go long, this market goes against you and caught you off. What you just lost is $200. So if you lose $200 out of 10,000, you don’t cry because you put risk in place. You know this is call risk and money mangement. Okay So if you, if you are working with $1,000. You are risking 2%, which is $20 on every trade.
Okay Maybe you will now go for 2.5% in return. So you look at it, it’s the consistency of how much you are making that matter. So if you, if you have a $1,000 account and you are not trying to make $200 a day from that account, you are looking into for example $1,000. Now this goal, the goal of this one would be like to make between 40 to $80. Okay You are not over leveraging , you are not over positioning this account. So if market should go against you. You know that, okay You are not really, really losing that much, but imagine a situation whereby you have ten thousand dollars account, and you are risking almost $6,000. Do you know what that means , anything should the market go against you. This could make you to develop aparthy for. You will lack interesting friend and you will lack your confidence.
So went the situation like that arises. All you have to do is stop life trading, stop life trading for a while, go back and demo trade the right the way you can start winning again. And you can go back to life trading. Does this make sense I taught all? See, any video I create, I create based on experience and based on feedback, I get from my students and people that contact me. And I know that one area that you are missing so much is this area of risk and money management. You don’t see much video about it. People show you how much big they make but they don’t show how much they lost. But from my experience, am sharing with you for my experience that if you put your risk and money management in place, okay, everything would be all right. If you, if you, if you put I’ve said this over before, if you put $10,000 into a savings account, most savings account to give you 1 to 2% return okay.
That is the interest in a year. So let’s work with 2%. This would be two hundred dollars, right. So if you now trade even Warren Buffet said that 20% return on investment in a year, I have a stock account that I run. Most of these stocks right now, they appreciate they’re like 1, 2%, 3%. Okay So if you trade your $10,000, and you get 20% return in a year. This gives you like $2,000. Okay I know many people would say really, I’ve shared this before you put your mind on compounding your account. You are not putting your livelihood or your livelihood on this account. And of course account you start with $10,000 in five years will worth something. But what people do is that they want to start an account and right from next week they want to start withdrawing from it. And that is why, when you have $10,000 accounts, you want to make $2,000 daily.
So when you are doing that, if you have $10,000 in your account and you are risking $2,000, if you lost, if you lost this $2,000, you’ve just lost 20% of your account to get back this trading account to where it was you will need to double this loss. That is you will need to make 40% profit. Again, what people do is they try to do what is called revenge trading. And you could lose more and more. okay. So when all situation is arising like this, all you have to do is take a pause, go back and demo trade again. So how long you demo trade, I told you their is no black and white to it. As I said, it just depends on situation that is going on. Things happens. And we have trading signals – that doesn’t work one hundred percent of the time. Okay. you have lets say, for example, knowledgeable that I just, I was just talking to a student this morning. If you lets say, you have a signal. Okay. the market is trending up and you go long.
So all of a sudden their is a news that affect that currency pairs for example, lets say you are trading EUROUSD, all of a sudden their is something that affected you US dollars it will make technical analysis that you have done to look as if it was wrong. This is that you have gone to look at the market, or if you have put, your stoploss. Okay. I have different trading strategies. There are some systems I trade there are some strategies I trade that I don’t use stoploss. And the reason is simple, should the market go agains me I would not cry because of the size of the conduct. I have, I have different types of accounts, but like, for example, their is this account today, its a $5,000 account and today, let me see. Yeah. Three $384, $384 from this account.
Okay. $384, for every trade I place on that account I did not lose more than 2%. Okay. So this is how it work. Okay I hope this makes sense to you. Okay. My friends, I try to keep these videos short. I know we have gone above my usual time, but if this is the first time you are connecting with us on our channel IDs. like this video, share it on your Facebook profile. Leave your comment below. If you disagree with what I said, also, I welcome your opinion, leave your opinion below this video and subscribed this channel. And I will see you tomorrow.
Once again, this is Emmanuel Adegbola, a.k.a ‘the forex apostle’. And I want to use this opportunity to invite you for a training that I will be hosting this Saturday titled three proven steps four figures daily forex system.
On this training, I’m going to be exposing, revealing and unveiling for the very first time – My proven system that I use to siphon cash from the Forex market every day. So, and that training is going to be this Saturday by 9am central time, if you are in New York, it’s going to be 10am. It’s not time. It’s going to be 3:00 PM Nigeria time. And it’s going to be 6:00 PM if you are in UAE time zone. And of course, as an attending on this training, you are going be getting free copy – digital version of my latest book 4 figures daily forex system. To sign up visit – https://fxbootcamp.info
