Hello, my name is ignacio and i have roughly 3 months operating demo accounts on plus500. Ive duplicated my demo account using leverage cfd stocks, mostly intraday. Onviously i have a risk management, i always try to use 10% of my money and ive been doing great these 3 months.
Ive been reading about psychology and everything that suppose to change in real money trading.
I have 2 questions, my idea is invest 20 thousand dollars there, and see it as an extra income source.
Is that a difference trading demo account with real besides psychology?
I use common stocks as aapl, goog, ea, yahoo. do you think i would have a problem with the liquidity when i want to close my operations?
Thanks in advance, and sorry for my english, not my mother language.
Some things to think about... (just my opinions, but they come from years of experience):
1. 3 months on demo is nothing to get excited about... and by nothing I mean nothing.
2. You say you are risking 10%... is that in total across your positions or on each position? At 10% each it's WAY TOO MUCH (always). At 2.5% each it's still WAY TOO MUCH for someone with absolutely no experience. A more realistic starting point would probably be in the neighborhood of 0.5% or less. You really have absolutely NO knowledge of how to trade right now... your focus should be on losing as little as possible while learning. Stop thinking about that second income and start thinking about all of the money you could lose during that learning process.
3. You should begin trading live as soon as possible to learn the difference between demo and live trading for yourself. This is the only way you will learn what's it's like to trade for real. Yes, the psychology is the biggest obstacle to overcome, but there are many others... the other major one, money management/position sizing (see #2). If your broker allows you to trade CFD's on mini or micro contracts, I would suggest opening your live account with much less money (maybe $2K instead of $20K) and trade micro lots. If your broker doesn't offer micro lots on CFD's maybe you should search for one that does until you "graduate" to a larger position size.
4. The odds are you're going to lose almost all of the money in your first real money account... unless you're a millionaire who has $20K to throw away, please seriously consider the advice in #3.
5. See the last line in #2.
Best of luck in your journey...
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