How to Start Trading on a Demo Account? Paper Trading Golden Rules

in this video training we’ve got paper trading golden rules

stay tuned

hey guys welcome to you all right so if you’re paper trading or if you have a demo account and by the way our channel sponsor is pepperstone a link in the description below if you’re looking for a demo account you’re looking

to kind of have a go of the markets and and trade without putting any financial commitment in yet and you can open a demo account very very easily and very very quickly uh with peppa stone as a link to the description below they offer different platforms you can try those out as well but some golden rules that you should really stick to if you are trading demo or a paper account because the big issue that i see most traders have is when they’re trading demo in a trading paper and it’s a great idea right it’s a great idea to start off with but i’m always a big advocate of moving to real money as soon as you can because it changes the way you feel about the trade when you’ve got some skin in the game it changes your whole perspective psychologically

and you don’t kind of feel that until you move to real money but

there’s a real useful and real vat as a real use and a real value

to paper trading is why opening a demo account with someone like pepper stone is a great way of doing it even if you never move to a live even if you’re just kind of playing around with it it’s a good way to do it and also guys as well if you are about to open a live account just starting it down to get used to make some of the mistakes we’ve all made mistakes like i know many traders including myself guys have made horrible mistakes with tickets and orders and buying something we shouldn’t do and selling something and size and stuff so get those out the way when there’s no consequences financially

before you kind of go to live so platform familiarization is good one and also just the trade strategy really is what we’re going to talk about here so first thing is construct a trading plan now i talk about this a lot

however i get that when you’re brand new you don’t know what you’re doing you’re like

what plan should i use should i do this should i do that just pick a strategy just pick a very broad idea as a couple on this channel guys i’ve done a few um there’s probably loads out there on the internet as well and just trade that because the idea is what we’re doing is we’re trying to get into a methodical process but what’s more important than the strategy is the process

and the checklists and what you’re going to do before you make the trade so the plan would be i’m going to trade on mondays and wednesdays i’m going to trade currency markets and i’m going to look for this

this type of setup on the chart very very simple

but what you’re doing you’re refining and refining things down

so that at least you have a plan of action you know if you were to set up a business

on a street and it’s not going to be a restaurant you’d at least know the kind of food you were going to sell um when you’re going to open who you’re going to employ you’d have a broad idea yes you might adjust and change the menu and change the opening hours and offers and stuff as you get going but you have a broad idea of what you’re doing so that’s going to do constructive training plan even if it’s very very broad what you don’t want to do is just open the demo account just be flicking away trading

gold one day oil the next apple the next this and that and the other

day trading swing trading refine it down promise you that will

help you in the long run second thing is trade the same size

as you plan to trade live so you know when you open a demo account regardless of how much money is in the demo account say hey how much am i going to be risking in the live account okay it might be 2 000 pounds maybe 10 thousand pounds might be twenty might be five hundred dollars

who knows whatever it may be trade to that size so do your homework and work out how much risk you’re going to take per trade how much risk you’re going to take but we’ve done exclusive videos on that guys you want to go and check them out how to come up with risk management strategy

but what you don’t want to do um and this is where a lot of people fall down is they go right i’ve got a demo account here it’s got 10 grand in i can trade what i want and i don’t think about size all they do is think about trading the instrument rather than the risk management and the size management so consider how much you would trade when you’re thinking of trading live when the time’s right and gets that at the moment and then trade the appropriate size for that don’t be tempted to

swing stuff around and go oh yeah i’ve made 200 grand on the demo it’s meaningless

what you’re using the demo for is to get into a system into a routine and you’re in a perfect position why are you in a perfect position now because you haven’t got any bad habits you’re kind of new to it you haven’t got any habits that are going to be hard to unwind because a lot of traders you know we come up with bad habits then we have to unwind them so you’re in a beautiful position you can start the demo start

right start properly and your learning curve will shorten

and reduce massively so trade the same size as you’re trying to play love use strict risk rules

similar type of thing but this is basically saying okay where am i gonna come out of the trade if i’m wrong so a stop loss order where am i gonna when am i gonna stop trading if i’ve made multiple losers in a row and re-evaluate

again consider it as if it was live and treat it like a business

and then we go never leave a trade on without stop this is a classic one a lot of traders will

you know trade they put a trade on and then they’ll leave it and they’ll leave it multiple days and come back and go i’ve made so much money you never do that in the real world you’ll be checking it frantically and consistently

so never leave a trade on without a stop and get out of that habit straight away get into the habit putting a stop in keeping the risk managed and doing it correctly the fifth thing is is start to consider how you will feel

if it was real money so if you made a couple hundred pounds 500 pounds a thousand pounds 20 pounds whatever the number is how do you feel about that and just consider it because that’s the biggest challenge and the biggest friction point going from live uh to re sorry for going from demo to live is the emotional aspect so just start to consider it

you’re never gonna know but you probably know that hey if you suddenly made 50 on your account you’re probably going to feel pretty ecstatic same as if you drop 50 in your account you’re going to feel pretty bad and so you’re just starting to think about how that will

you know later on um if you kind of get involved with live trading

loads of videos on this channel guys we talk about

emotions and how to deal with those and discipline and stuff if you just start thinking about it now

uh while you’re in demo it’s a good place to be

the sixth thing is don’t trade from your phone now it doesn’t mean

phones per se but what it really means is

treat it professionally so if you’ve got an allocated time you’re going to come in

you’re going to do your scan you’re going to trade do that

rather than being out and about taking out your phone um

and flicking through and making a trade from there’s nothing wrong

i don’t think with occasionally checking the market out and about

but i think impulsively trading on your phone

is a bad move you know you need to be considerate

with your trades take them carefully and be very

very precise about the process you take before you pull the trigger now peppers don’t offer

um the platforms that you can download onto your mobile

apps and you can monitor the market you can trade if you want to i think monitoring is fine and maybe if you’ve already got an alert in or something to take a trade that’s fine but the point is not to be making decisions as tempting as they are as exciting as it is to be involved in the markets on the fly when you’re out and about on an ipad or

an iphone or any phone um the final thing guys is number seven keep excellent records if you can keep records now and get into the habit of this this is the one thing that will definitely help you

improve your consistency further down the line keeping good records how you’re feeling what you’re trading what the setup is what the strategy is what time is all this stuff yes the broker will keep all the records for you they’ll be available for you whenever you want however just keeping your own journal your own log your own records just it just sets you apart from the rest just puts you in a little bit more of a professional status makes you feel like you’re doing something that others aren’t and guys something to point out here 90 of people who open a demo will just sling trades back and forth and they’ll be doing all sorts of stuff and they’ll think like yeah i’ll do this do that and whether they make money lose money is purely down to luck if you follow some of these rules you are ahead of 80 to 90 of the people out there and if you do these things now then you have a much much better chance of making it work when you’ve got real money on the line than those guys who are just firing around i’ve gotten real no uh direction got no plan got no strategy or this kind of stuff so

well worth following these paper trading golden rules and well worth checking out pepper stone links them in the description below take care guys keep the risk managed i’ll see you next one bye you

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