Simon had an interesting observation on his blog yesterday.  He states that even though he's trading Micro-Lots (.0001 of a cent), he still notices the emotional element.  This may confirm that at least for him, it's not about the money as much as the need to be right and not wrong.  

For those of you trading demo accounts, you may want to go Simon's route and trade micro-lots.  When I started my Forex trading career, I didn't get anything out of trading a demo account except to find out if I liked the trading platform.   That's probably why I never really traded a demo account and started with 10K mini-lots.  

You can read his post at http://simonsupertrader.blogspot.com/2007/01/interesting_31.html 

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No. 1 :

I agree. I was trading a demo account for 2 months or so and I found that using fake money was impeding my progress. I would make a lot of excessively risky decisions knowing that there was no real consequence, and at the end of the week I would have no effective way to gauge my progress. Since then I've switched to trading a micro account on Oanda and I've made much better progress on disciplining myself and getting past all the usual beginner mistakes.

Submitted by Michael D • 2007-02-01 16:08:38

No. 2 :

I am a STRONG believer in getting in to real money trading as quickly as possible (put it in my book, in fact). There's no reason not to. Oanda will let you open an account with $10 and you can trade 1 unit positions if you like. Obviously, we're not suggesting putting a lot of money in the market here. Chances are you'll lose a healthy chunk of your first account deposit, so make that tuition as small as possible, but the value of the experience you gain knowing what it's like trading real money is massive.

Submitted by John Forman • 2007-02-01 16:39:05

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