Why do you make money trading on demo but not in real market? [Trading Q&A]

Stick to only one strategy to prove it whether it works or not. You have to pick up your strategy based on the type of your trading, like if you are a scalper, you should develop a scalping strategy. Strategy is made by compiling indicators.

In a demo account, you will encounter many situations that won't cost you any real money. And there is a bit of a 'comfort zone' while trading on a demo account. While on a live account, you are at risk of losing, and it becomes emotionally bound to you. Therefore, it is difficult to trade on a live account. Consider a demo account as a practice account that only tells you your reality; do not take profits or losses on a demo account too seriously.

Trading in a demo account can differ greatly from trading in the real market.

And what earnings can be on a demo account? It seems to me that this exists for only one purpose - for the purpose of education and no more.

Demo accounts are only meant for the understanding and you do not follow risk management there, traders get carefree on that aspect when trading on demo but in live account one have to be careful and that could be a reason why traders hesitate to grab the opportunity, however a skilled trader would always know when to make a market move.

Slippage, spread are main reasons that live is different to demo account. Also the feeling of trading with real money ruins most traders as they end up chasing losses and spiral downwards

This feeling is common among new traders. However, it shouldn’t be neglected at all because emotions play an important role in your trades.
You need to introspect whether you’re ready to make trades. Also, you should understand how much money you can afford to lose and start trading the same way as you used to when trading with demo.

There can be several reasons why a trader may make money on a demo account but not in the real market:

    Emotional control: trading with real money can cause emotional responses such as fear, greed, and hope that can interfere with a trader's decision-making process. On a demo account, there is no emotional attachment to the trades.

    Lack of discipline: demo accounts can foster a false sense of security, causing traders to take on excessive risk or ignore their trading plan. In the real market, traders must have discipline to stick to their strategies and avoid impulsive decisions.

    Market conditions: demo accounts typically have different market conditions than the real market, including wider spreads, delayed price quotes, and simulated execution speeds. This can cause a trader's performance to differ significantly between the demo and real markets.

    Different trading environment: demo accounts are typically provided by brokers, which may have different rules, regulations, and technologies than the real market. This can affect a trader's performance and require a different approach.

You can be taking on too much risk in the real market, which could be the main factor. You need to be more cautious and conservative when trading with real money.

Trading on a demo account shields us from real danger and market volatility. Additionally, risk management is crucial in live trading, but many traders overlook it when they engage in live trading.

In demo trading, traders may not have the same level of discipline as they would in the real market, where their own money is at risk. This could be one of the reason.

The most important difference between a demo account is that there is no need to replenish the account with personal funds. It should be understood that this is a great opportunity for learning.