I know that Demo account is a blessing for new traders but I would like to know is demo account is really helpful?
Depends how you utilize it. If you use it to develop a strategy and commit to following its methods and not deviate away from it. Then you can feel comfortable to take it to the real market once deemed a profitable strategy. But if you use the demo for the sake of just trading without any method involved, or an intent to develop a method, then it can be considered useless and maybe even detrimental by sub-consciously developing bad trading habits without having to pay for the consequences in real life.
It works to test strategies, if you have the discipline required to stick to the strategy during testing the demo will work just fine, if you re-open a new demo account and bury your losses they will come back to haunt you as soon as you fund your account with real money. It´s all about discipline.
A demo is most beneficial just to learn the mechanics of submitting orders, setting up strategies, exiting the market, and learning the quirks of the feed. However, there is simply no way to simulate trading real money until you actually trade real money. The psychological factor in trading is huge, and you won't know it until you trade live.
--------------- 1. Yes sim trading usefull ,if performed with good platform as example FXCM ,not with worst as Metatrader 2. Quote ...The psychological factor in trading is huge, and you won't know it until you trade live ------------------------------------------ Simple eliminate this difference a. Play paper game competitions with real money price b. If won price - money 50 % of price - privat consum (Bottle's of good cognac ,notebook ,dinning in good restaurant &) 50% of price money from paper competion can be used to start gambling with real money ... Not start any real money trading activities with investment more as industry "standart retail account" = 2000 $ But better two attempt's ,each with 1000 $ ,as one with 2000 $
Make study of objective and strategy from reports of top performer's In FXMC real money contest To date knew not any another comparable source of relevant information .Some of reports to date present in internet -------------------------------------- FXCM King of the Micro contest ,performed with downloading version of FXCM platform, (Web version possible ,but need initial capital more 2000 $) ,most of top performer's with start capital to start of the month in region 500-700% ,top performer with 1296 .08$ have made 166226.28 $ in one month + 25000 $ price money Corrected list of top performers with results from march 2009 (41 contest months ,each month 5000 contestants ,for 41 month -more as 200 000 attempt's ,70% of all contestants performed loss to end of the month ) http://www.elitetrader.com/vb/showthread.php?threadid=247149&perpage=6&pagenumber=3 1.october 2011 -12725 % canada A.e 1296.08$-166226.28$ 2.may 2010 - 3109 % poland A.e. 532.32 $ -17087.65$ 3.dec 2009 -2931.95% china A.e. 725.24 $-21989$ 4. sen.2010 -2860.58% canada A.e. 546.74$ -16186.95$ 5. dec 2011 -2464.12% china A.e. 507.97$-13024$ 6. maj 2011 -2116 % china A.e. 523.38$-11600.14 $ 7. march 2009 -1951 % hk A.e. 961.10$-19714.24$ 8..februar 2012-1918.36% china A.e. 13928$-281128$ 9. jun 2012 -1809 % china A.e. 505.50$-9638.01$ 10.march 2011 -1711 % macao A.e. 2122.45$-38456.03$ 11.april 2009 -1703 % china A.e. 500.78$-9033.73$ 12 .sent 2011 -1627 % china A.e. 502.49$-8678.72$ second place march 2009 -1918.67% usa 2-place