Of course there is some difference but I think half the problem is that people don't treat their demo accounts as if they are live accounts, making decisions as they would live. Doing so at least somewhat prepares you more as it builds good habits regarding risk and capital management.
If you can't spot the liquidity then you are the liquidity.
AliaDare posted: I've said before that emotions don't usually work in demo trading. Demo trading has virtual money, it is not a problem to lose money, so emotions usually do not work. Many traders make a lot of profit in demo trading but they do not get good results whenever they go into real trading. Greed and fear can cause this problem.
So true, some of the harder battles are in the mind than on the broker. It is key to try live accounts too even if its for a small amount
UweMoench posted: You do not have to worry about losing your money when you are demo trading. your demo account does not demonstrate to you industry standards to manage the sentiment fear. That's why you remain emotions while in demo. But when you come to live trading from demo trading, you brings emotions (the fear of losing and greed more more profit) with you. That's why the result between demo and real account is not the same.
Demos are good for newbies and testing and playing around with
Demo is specially created for being easy. The main objective of demo account is to meet a new trader with trading activity. Demo trading implies the acquintance with trading activty and with mechanics of market price change. Of course, it's easy, you don't need to put your money on demo and trade them. Demo account implies the particular sum of money on it in order to let you practice on it. I believe that if there would be no demo, lots of traders would just lose their money. However, the positive side of this phenomenon would be the decreasement of competition in trading activity and the decreased amount of market makers.
The basic reason that we find demo easier than live trading is because there is no real money involved. However the most important reason I believe is that while demo trading, it’s easier to forget your losses because you won’t have lost any money in real, but when we lose even a small amount in live trading it has a significant impact on us.
Just like your face a fake girlfriend, when you love too much with your girlfriend, it will very painful when she leaves you, but when your love is only fake to your girlfriend when she leaving you will be nothing, your feeling is like as usual no broken heart, in a demo account, you just love with fake love, because it does not use real money when you loss will felt nothing, but in the real account, you spent real money, and when losing the money you will felt emotion in real.
Our training begins with the demo account, and the more interest we get into the demo account, the more we can learn about the Forex trading system. Demo accounts should be taken seriously since they're just like real accounts.
Demo accounts allow you to trade without using your own money but instead 'pretend' that you are doing it with the help of play money. New traders make their mistakes there and can learn from those mistakes without any risk.
It's true that there are differences and a demo account can't prepare you for the psychological aspects of trading on a live account. However, demo accounts still have a lot to teach us and they're the best hands on tool for traders. I also think we can all avoid some early losses by practicing on one. The best way to avoid being affected by the changes is to do research on psychological trading problems (like analysis paralysis, ego issues, etc.) so that you have knowledge of them and to trade with good risk management precautions, as that can take away some of the anxiety.
In demo account we don't feel anything if we are going lose any trade. But in live trading we get restless if a trade goes against us. To deal with it, we need to develop a good trading psychology along with trading skills.
First impression trading in the demo is easy because no emotion pre4ssure when trading use demo account, also initial capital on demo account usually very big more than $5000, and we know if amount capital also impacted to the strength of account, ideally use bigger capital and low capital when using same position size will strongest use bigger capital to withstand price movement
It depends on you how you are thinking about trading. Try to consider a demo account as live trading and make a journal with your own strategies, thoughts and live trades. It would be good for you if you made a journal about your trading with the demo. You can utilize these experiences when you start trading with a real account, and your mistakes will be small.
Ostrzeżenie o wysokim ryzyku: handel walutami obcymi wiąże się z wysokim poziomem ryzyka, który może nie być odpowiedni dla wszystkich inwestorów.
Dźwignia stwarza dodatkowe ryzyko i ryzyko straty. Zanim zdecydujesz się na handel walutami, dokładnie przemyśl swoje cele inwestycyjne, poziom doświadczenia i tolerancję ryzyka.
Możesz stracić część lub całość początkowej inwestycji. Nie inwestuj pieniędzy, których nie możesz stracić. Zbadaj ryzyko związane z handlem walutami i zasięgnij porady niezależnego doradcy finansowego lub podatkowego, jeśli masz jakiekolwiek pytania.
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