I wouldn't go as far as to say you have lost one year with demo trading, however based on my experience with risk control and money management (roughly 10 years) I can say without a doubt that it is better to start with a live account (instead of a demo), though a small one (cent or micro account) would be preferable for capital conservation reasons.
Even a $10 bankroll on a live account is preferable to a $100K demo account. Why? For the simple reason that the mind has a trigger that ... gets triggered when there is a REAL risk perceived. You won't train your emotional control appropriately using a demo account, which is a safe environment. Even a trade where you stand to risk $1 would trigger more emotions than a $10.000 demo trade. And you need that to learn to handle such emotions. More than half of the necessary equation for success in trading is emotional management.
So I'm not surprised this happened. But it's good that now you know how mind and emotions work, or at least this should be evidence enough for you to realize. So I would stick to live trading, use the smallest live account and trade sizes available and learn from the experience.
Do. Or do not. There is no try.