When to switch from a demo account to a real one

Most Forex traders' careers begin the same way: almost everyone is confident in their competence and starts trading with a real account.

But after their first deposit is lost, the newbie becomes more cautious and switches to demo accounts .

Several months of trial and error pass, and finally, successful trades begin to appear, with more and more of them appearing every day, and the deposit gradually increases.

Successful demo trading makes one eager to quickly switch to a real account, as virtual earnings could turn into real profits.

In reality, the size of a profit over a month or other reporting period does not fully reflect your trading skills and is not always a guarantee against repeating mistakes.

There are several conditions that must be met before you can declare that you are ready to trade on a real account:

• The size of the drawdown should not exceed 10%, this indicates that you have learned to manage losses. Even 10% is quite a large figure, but it already gives hope that you will not repeat it deposit drain.

• Profit size – in relation to the initial deposit, it is better to evaluate the indicator for one month. It is desirable that your profitability be more than 5% per month.

• Trading period – at least 3 months; only after you've traded for at least three months on a demo account can you talk about any stability. Moreover, the average profitability rate over these three months should exceed the same 5%.

• Confidence – you yourself must be completely sure that the time has come; self-confidence is the most important indicator of readiness.

To test your psychological stability, it's best to first try trading on cent accounts . Trading with real money is always different from trading on a demo account.