DEMO ACCOUNT vs LIVE ACCOUNT

Bohdan73 posted:

Professional4X posted:
I agree with you. If a person develops good skills, controlled emotional discipline, and a solid understanding of what really moves the markets, you can make a very good income from trading. But it takes a lot of work and education in order to make a good income from it.

This is the holy grail of trading what you explain. Everyone should strive for it 😄 I agree that it takes lot of work!

I agree. That is the only holy grail of trading, in my opinion - hard work. To study, to practice, to learn from one's mistakes. There are no shortcuts.

12 months demo and since 10 month with real

manolo83 posted:
12 months demo and since 10 month with real

Are you satisfied with the results of either?

The purpose of demo is to be familiar with the trading mechanism. Another purpose of demo is to test your strategy. Stay on demo as long as you find a proven method. Define your entry, exit, risk, reward and risk management policy on demo. Once you are convinced you can go for live trading.

UweMoench posted:
The purpose of demo is to be familiar with the trading mechanism. Another purpose of demo is to test your strategy. Stay on demo as long as you find a proven method. Define your entry, exit, risk, reward and risk management policy on demo. Once you are convinced you can go for live trading.

I cannot add any more. This post IS the answer to the thread

the main different between demo and live is all about psychology , nothing without it , in reality there is no technical different between two.

Both accounts are essential for learning.

I would suggest starting out with a demo account for at least a year before attempting to trade on a live account. You should minimalize your risks.

LyudmilLukanov posted:
Both accounts are essential for learning.

Basically they both are same the difference is that the live account has real money involved, although you have traded in the Demo accounts , their is this psychological factor comes into play which might hinder your decisions.

It's almost identical. Only thing is that there is a difference from a psychological standpoint.

I think beginners will be surprised to learn how many experienced traders use demo accounts to test strategies.

For me, demo is good to be familiar with how the trading platform works. However, if you want the real trading experience, you need some money on the line. It doesn't have to be big, you just need to have the same feelings or emotions when trading a bigger account. With demo, you tend to be reckless with your trades because you have nothing to lose and that might lead to a bad habit.

The goal of the demo is to become acquainted with the trading mechanism. Another goal of the demo is to put your strategy to the test. Continue to demo until you find a proven method.

On demo, define your entry, exit, risk, reward, and risk management policies. You can begin live trading once you are convinced.

It is very important but you can learn so much on a demo so that when you go live you have 95% of the skills you need