Demo trading or simulator trading should only be used to test a potential new broker platform prior to opening a trading account with them, learn your broker trade execution platform after opening a trading account with them and/or briefly test run a new completed trade method with a completed trading plan.
Thus, demo trading or simulator trading is not good to use while still "developing" a trade method because that's what backtesting is designed for.
Simply, as soon as you have completed developing your trade method and completed developing your trading plan...it's time to go to real money trading with a small amount of capital until you've determined you're ready to trade with your full available trading capital.
Note - Trade method and trading plan are different. A trade method is a component of a trading plan.
In fact, there's a common problem many traders make on demo/simulator is that they use it while still "developing" a trade method or use it when they have a completed trade method while not having a completed trading plan...doing such creates discipline problems along with not properly preparing a trader to handle the stress of trading with real money. Also, it will teach a trader that its OK to trade when your trade method or trading plan is not ready...one of the worst poor trading habits to learn and just as difficult to unlearn.
Just the same, if you have problems with your trade method or trading plan while trading with real money...stop trading and go back to the backtesting phase and do not go back to the demo/simulator phase unless you think your trading problems are related to not being able to adequately use your broker trade execution platform.
Therefore, the only way you can learn how to deal with the stress of trading is via real money trading and not via demo/simulator trading nor via posting real-time signal calls at a discussion forum.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3280521#post3280521
Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader, http://stocktwits.com/wrbtrader and http://chart.ly/users/wrbtraderhttp://www.thestrategylab.com
Phone: +1 708 572-4885
Business Hours: 8am - 5pm est (Mon - Fri)
Skype Messenger: kebec2002
questions@thestrategylab.com
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