Practice Account vs Real Money: Whats the Difference?

This is the difference, ‘demo’ trading is like some of the posters said about matchsticks.

Practicing is a whole different ball game, you are practicing for real, not as a demo, not for matchsticks, this is the real thing, an old trader once said that to be a good trader there are three important words … practice…practice…practice .

Told this before, the retired bank trader who decided to start up on his own in retail, sat up the entire night on one of his early trades, it was going wrong and needed nursing, he needed to minimize the loss.

The fact that it was a practice account did not come into his thinking.

In 2002, I threw in a 1000 bucks and traded options, having no idea that I could be called upon to come up with the dough if exercised,wtf…I lasted 2 1/2 months, surprisingly. Amgen, Biogen were my biggies.
I am on practice, as Oanda calls it and rightly so. I have no concern if the market goes against me as I have no money on the line. I have read time and again one only begins to learn money management once live becomes of age.
I do believe the time nears as I am preparing to do such. Still need to do recommended studies such as a journal???..makes me feel like a girl, but nevertheless, recommended. Memory is good, but can’t file all. Weakness is buying into resistance…can’t seem to shake that for the brain of me.
I do not want to be the 90% who fail, I want to be the 10% who succeed, so here I come.
Tim

Apart from the technical differences like different quotes and slippage, the main difference is that you’ve got something to lose when you move to e real account. Whereas in demo/practice you are venturing in a new area of knowledge and looking with bright eyes at what’s there… when you move in with a deposit it’s like you have a knife in a jungle, but you still want to get to the treasure. The first is pleasant and lacks pressure, whereas the second is a challenge and you experience fear.

You are right, demo and real account are two totally different things. A trader can learn a lot about techniques and methods for trading in a demo account but his actual practice should be carried on a real account.

I may not know much about forex trading because I have only been doing this for 6 months now.

I started with a demo account for 1 month just to learn the platform (MT4) then I jumped straight into a real account. Why? because I felt trading a demo without the fear of losing real money is a waste of time. many will disagree with me but I fould out that it’s easy to find a good trading strategy but the fear when trading your system is the real challenge.

With real money we tend to set stops loses to close and get knocked out before the direction moves in our fava, and jump out a trade to soon because the fear losing is all to real. Learning to manage your fear can only be learnt on real account.

So to answer your question I think a practice account is just that, practice your system and your platform
and when you confident and brave enough to face your fears and make some real money open a real account.

Well there you go, the old demo vs live, most learners feel the need to use the demo to get a feel for the technology, but they really need to feel the fear , so open the live.

You don’t learn how to cope with fear by giving money to bookmakers, you learn how to cope by taking a deep breath, you have practiced, with that practice you have gained skill, with that skill you have gained confidence.

A confident trader most often has his own edge, gained from practice, not from giving money away.

Btw, nothing wrong with having a bit of fun in the market, no more that having some fun at the race course, like they say, horses for courses - want to take the business serious, then first learn how to practice for real.

How do girls feel, exactly?

Hi.

Well, I’m different. And all I can do is tell you how I am.
I have taken this business very seriously since I began it. Jan '13. I’m old enough to know how to actually be serious about something.
I have always refused to just jump into the market and lose my money. I grasped the concept, pretty quickly, of speculation. And I also understand human behavior. We want to be right. We think we can be right. And we will even put money on our feelings that we will become right. But I also understand the fact that we just never will be always right. It’s best to play the odds. Know, realize, immerse yourself with the understanding that you will lose along with winning. And it just only makes sense that you need to learn the game, develop a good strategy, test it, and prove to yourself over time that it’s possible. I mean, what makes more sense than to give it your all on a demo account. Like it’s real. And after keeping track month after month you see the account grow. Or not. See, only a serious person will be honest with himself.
Well, that has been me. Sure, I have blown 3 1K accounts during the last 3 yrs. Believe me, I’ve been bent out of shape… pretty much the entire first 2 yrs of it all. But I have a genuine love for the game. That has always kept me in it. The only real problem I have is just how long will it take for me to get there? (that’s a feeling that crops up at times) (but I do know it just doesn’t matter how long it will take, I will always be in it) That’s my mind talking.
I’ve pushed my ‘live’ date back so many times it ain’t funny. I thought it would be the beginning of this year. Nope. I wasn’t ready. But, I do think I’m ready in two more months. Jan '16. That’s when I’m going in.
(Don’t worry…there’s a big thread coming with that)
And I even remember reading some good psychological books that blew me away. And I even said to myself that I’m soooooo glad I didn’t go live yet!
Well, at the present time now, I feel confident, in myself, my plan, and it’s about time to get in live.
Man…for as much as I have traded seriously in the past just about 3 yrs now, it’s gonna be the same old thing.

Look, I am different. I am not your average person. I do not expect anyone to believe me. Nor do I think anyone should do what I do.
There is some really good advise thrown out there that newbies do need to heed.

But, this is who I am.

Mike

Much the same as anyone else, really: typically with our fingers. :wink:


funny

I was going to say: Soft and cuddly.

Interesting opinions from all of you, always trying to keep an open mind.

Main difference is of emotions, secondly many traders practice on demo accounts with huge capital, this is not right, you should demo trade with the same amount you are willing to deposit in your real account even if its 100$ you should demo trade with 100$ only.

Resurrected this old thread for one reason.

I’d say the best analysis I’ve ever encountered in how to practice with a demo account - brilliant post.

And imagine that there are brokers out there, not so many, who give this tool out for free, no marketing, no phone calls, no time limit - just use it.

3 Ways to Help You Take Demo Forex Trading Seriously

Now I’m getting repetitive, but check out the last two paragraphs, closely, then think about the last sentence.

You do not need to give money to the market, either by means of a ‘small’ live account or some paid resource, you DO need to be able to apply via practice.

Is There an Art to Understanding the Forex Market?

If I had a hole, I really could tell you so.

Na zdrowie,
Tim

I have treated my demo as if 2000k were deposited. This is not an easy task, staying above water. I have been battling hard to keep my losses short, but somehow can’t allow my winners to run. My losses are 15$ less than my winners, but too many trades with loss…overtrading I suspect…want that action. Not down terribly, but certainly not content with my overall performance.

Na zdrowie,
Tim

There is a big difference between practice money and real Money.
>If you want to learn the real analysis both technical and fundamental, trade in real.
>Trading in real will make you aware of the market conditions and sentiments.
>Trading with real money will make u trade cautiously and help you to discover new dimensions of trading.
>Earning profit on Real Money will bring immense happiness even if its $1.

Only if its consistent.

Believe me, if you treat your demo as a real account, you will realize the ups and downs. I cannot tell you how real this experience has been because you are not me. From what I read, live will present a totally new experience.
To those who study, success will be theirs.

Na zdrowie,
Tim