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DEMO ACCOUNT vs LIVE ACCOUNT

togr (togr)
Aug 16 2016 at 14:26
4862 posts
From technical point of view demo and real is the same. You can even copy trades from demo to real.
From psychological point of view the difference is huge.
You can stay cold loosing 100k demo but not 100k real.

xgavinc
Aug 16 2016 at 14:42
235 posts
togr posted:
From technical point of view demo and real is the same. You can even copy trades from demo to real.
From psychological point of view the difference is huge.
You can stay cold loosing 100k demo but not 100k real.


Exactly, real account has no reset / restart button, the pressure becomes reality.

Everyone remembers their first trade... mine went down US$0.43 and I could feel the blood drain from my head.

For every loss there should be at least an equal and opposite profit.
mlawson71
Aug 17 2016 at 08:44
1487 posts
Don't execution times differ between live accounts and demo accounts though?

menalee (menalee)
Aug 18 2016 at 06:16
5 posts
for robot/ea key different is Slippage
for humans Slippage & knee jerk

togr (togr)
Aug 18 2016 at 08:26
4862 posts
mlawson71 posted:
Don't execution times differ between live accounts and demo accounts though?


With good broker the diff is minimal

Licenseed2style
Aug 18 2016 at 08:26
5 posts
There is a massive difference between a Demo and real account been though the market conditions are the exactly the same.

The problem is they give you 50-100K accounts which have lots of room for bad trades to run and return while other trades are working out. You can take large positions and make a few hundred in minutes while others are running the other way and you just wait for them to return in the correct direction. It takes many large position to force closures in a demo account. It fools you into thinking that its easy money to grabbed all day long.

I found myself starting a 100K Demo account 2 years ago and making a 50K profit in 2 days. I did this several times as I tried different brokers. I turned a 10K Demo into 70% profit in just days last month. But when its real money you make different decisions your not relaxed you don't fear loosing that money and it turns out very different in real account.

Then I started real accounts with just 5000 and start trading in the same way. Well I have lost at least 6 of those accounts to the last euro. I cant seem to turn of the style of trading in 100K vs a 5000k account. Its been 2 years now.

After having lost another account in one night of Brexit I only trade 1000k lots in a very small account and will build that up slowly again and never take large positions ever again. I am going for 20-30euro per day now. Its a long road back to 30K of losses this way.

mlawson71
Aug 18 2016 at 09:49
1487 posts
That is why when one trades on demo they should trade in the same way they would trade with their real account. Otherwise there's no point to the whole exercise.

togr (togr)
Aug 18 2016 at 11:04
4862 posts
Licenseed2style posted:
There is a massive difference between a Demo and real account been though the market conditions are the exactly the same.

The problem is they give you 50-100K accounts which have lots of room for bad trades to run and return while other trades are working out. You can take large positions and make a few hundred in minutes while others are running the other way and you just wait for them to return in the correct direction. It takes many large position to force closures in a demo account. It fools you into thinking that its easy money to grabbed all day long.

I found myself starting a 100K Demo account 2 years ago and making a 50K profit in 2 days. I did this several times as I tried different brokers. I turned a 10K Demo into 70% profit in just days last month. But when its real money you make different decisions your not relaxed you don't fear loosing that money and it turns out very different in real account.

Then I started real accounts with just 5000 and start trading in the same way. Well I have lost at least 6 of those accounts to the last euro. I cant seem to turn of the style of trading in 100K vs a 5000k account. Its been 2 years now.

After having lost another account in one night of Brexit I only trade 1000k lots in a very small account and will build that up slowly again and never take large positions ever again. I am going for 20-30euro per day now. Its a long road back to 30K of losses this way.


From technical point of view demo and real is the same. You can even copy trades from demo to real.
From psychological point of view the difference is huge.
You can stay cold loosing 100k demo but not 100k real.

Meltafoz
Aug 19 2016 at 08:37
15 posts
I am of the thought that although demo and live have to be technically the same, demos seem to suffer from the volatility much less. I heard there were some brokers who smooth demo accounts intentionally and thus attract traders and encourage for live trading.

mlawson71
Aug 20 2016 at 09:59
1487 posts
Meltafoz posted:
I am of the thought that although demo and live have to be technically the same, demos seem to suffer from the volatility much less. I heard there were some brokers who smooth demo accounts intentionally and thus attract traders and encourage for live trading.


I have never heard of that happening, but it wouldn't surprise me if it does.

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