Beyond The Markets

Beginner · Lesson 9 of 11 · 5 min read

Practise before you risk money

Pilots train in simulators before they fly. Traders can do the same: test your plan on past charts and in demo accounts, then go live small.

ReplayPaper tradingJournalGoing live

Step 1: practise on past charts with Replay

The Replay button on the BTM charts winds the chart back in time and plays it forward one candle at a time, so you can practise without knowing what comes next.

  • Pick a date, hide the future, and trade your plan candle by candle.
  • Take at least 30 to 50 practice trades and write each one down.
  • You can practise weeks of trading in an evening, and at the weekend when markets are closed.

Step 2: paper trade in real time

Next, trade live markets with a demo account (most brokers offer one free) for a few weeks. It is closer to the real thing: you have to make decisions in real time and live with them.

Key idea

Treat demo trading as seriously as real trading: the same risk, the same rules and the same journal. If you cannot follow your plan on demo, you will not follow it with real money.

Step 3: keep a journal

For every trade, write down the market, the setup, entry, stop, target, result in R, a screenshot, and whether you followed your plan. After 20 or more trades, look for patterns: which setups, times and markets work best for you, and which mistakes keep coming back.

Step 4: go live small

  • Start with the smallest size your broker allows, or 0.25 to 0.5% risk.
  • Expect real trading to feel different: emotions are stronger when the money is real.
  • Only increase your risk after a few months of following your plan and positive results.
Example

Week 1 to 2: 50 Replay trades on EURUSD 15m with your plan. Week 3 to 6: demo trading in London mornings. Week 7 onwards: live with 0.5% risk, logging everything. Each step only starts when the last one shows you can follow the rules.

Common mistakes

Avoid these
  • Skipping practice because demo money “is not real”.
  • Going live with full size straight after a good week on demo.
  • Not writing trades down, so you cannot tell what is working.

Check yourself

1. What does the Replay button do?

It winds the chart back in time and plays it forward one candle at a time, so you can practise on past prices.

2. How should you treat a demo account?

Exactly like real money: same risk, same rules, same journal.

3. When should you increase your risk?

Only after a few months of following your plan with positive results.

Try it on BTM

ChartsLive charts for 40 markets with indicators, scanners and Replay.JournalLog every trade, see your stats and spot your habits.Using the chartsEvery button on the charts, with a 1-minute tour.

For education only, not financial advice. Trading carries a high risk of losing money, especially with leverage. Only trade with money you can afford to lose.

For educational purposes only. Nothing here is financial advice. Past performance does not guarantee future results, and trading carries a high risk of losing money, so only trade with money you can afford to lose. Read the risk warning.