Simply put, your psychological state when trading with a demo account is completely different from your psychological state when you trade with a live account. Or at least that’s the situation with most traders. That changes the decision making process which in turn leads to losses. Add whatever slippage and requotes and slower order execution that happen on a live account and don’t on a demo account and things get worse.
It’s a totally psychological issue , as a new Fx trader I was successfully in demo with my strategy Bollinger bands even though there was no real money managing plan. But with same strategy I didn’t get the same result in live account. actually we don’t trade seriously in demo account as like Live. Problem is here.
Have same problems with my Hotforex demo, the problem was transition from trading with large capital provided in demo platform and adjust risk with limited capital on live. Just keep R/R ratio low for a first time because many traders lose because of psychological mistakes and incorrect risk calculation. Markets are often keep being irrational longer than your deposit can suffer
Develop a full written trade plan. Execute it on demo. Execute it long enough that it becomes habit. Make sure it contains max risk per trade, trade entry, trade management, your risk to reward ratio goals, and anything else you can think. Go live. Try to start with as little risk as possible. Keep executing your trade plan exactly. Realize that results are something you will see over time. Journal and document your trading. Seeking a good risk to reward ratio in trading is probably the most important thing and the reason why so many people lose. It seems like on demo, you can do many crazy things. You don’t have any pressure from real life. Let’s say you’ve drawn down your demo account by 70 percent. You start to trade with really large risk to bring it back. You make trades that sit in margin call, and then, come back. You bring back your account by nefarious means. It is like a video game. You absolutely would never do that real, unless you are insane. Anyway, have a good one…
I don’t think it’s a psychological issue that someone has explained. It’s a matter of importance. By and large traders don’t believe the importance of demo account and trade at random. They like to use this platform as a casino. And when they kick off a live account due to greed and emotions they fall a great loss by over trading, ultimately become loser. I don’t think there is any different between live and demo.
Of course it’s a psychological issue, because there is no newcomer who can keep interest in demo account for a long time with great dedication.
LOL. Percentage can be bigger who doesn’t like to trade in demo with greatly. But obviously so many beginners are available in Fx who take demo seriously and acquire real trading experience by passing a long time minimum 6 month.
Most reason is because psychological disease, when trade on demo account, usually will trade with free without emotion, even though facing big floating still enjoy to wiating trend move to early track, and also amount capital on demo account usually startup capital is big number, while when trade on real account might only use smallest money
The reason is most likely psychological, but I would also recommend to pay attention whether you’re experiencing any slippage or requotes on your live account.
Yes, you mentioned here a good point! Maximum new traders don’t care about the result of demo! They open so many trades without any hesitation! But in live account, when they lose one or two trades than they lose their confident so easily!
Generally we pass many learning approach before starting demo, pips school is the foremost from all. But the message we learn from here is not possible to apply in demo trading, because as a newcomer we can’t avoid emotions when practice in demo. so micro account we can use where seriousness automatically come with surely. it is the best place to apply basic experience of knowledge.
For me, it was just emotions. I knew that I could not lose money on my demo account and that’s why I always got better results there, it’s normal I think.
My strategy to overcome this problem was simple - I just stopped using demo for a time and then my live results got better.
That means; you were profitable in your live treading from the early stage? Is this possible?
Who’s this David Branco??
A scammer…
It’s unusual, but possible, Peter.
The people who often manage it include only small minority groups: those who join a financial institution as graduate trainees and receive a few months full-time professional training before being allowed to click a mouse or lift a phone; people from trading family backgrounds; people who are skilled at statistics and probability before they start and then spend a very long time practicing their skills on demo. Over the years I’ve known a few very successful traders from each of those three groups.
Still very few people, overall, though.
Seen in other forums, too (but banned from them). One of the people who has learned that it’s easier for himself to make money by “coaching beginners” than it is by trading (unfortunately for him, some of his posts here were so inane and stupid that people realised he knows very little, and was just using the forum to promote his “tuition”. Maybe he couldn’t afford to advertise legitimately, so he just tried forum spamming instead? That’s my guess. Unfortunately quite a common story. Doubtless banned here now, too.)
Perhaps, it may happen that you are putting too much pressure on your live accounts. and you are being too much extra concerned with your live accounts. Just try to be focused and follow the trends. Best of luck!
Have you actually read any of the thread at all, Nathaniel, or noticed its age?
What was the duration of your demo account? Maybe, you have judged your strategy too early.
Trading on demo and trading with real money is not the same thing. When you trade with real money you are emotionally involved in to your money. Where there is money there is fear and greed. I think first he should test his strategy with a small capital. If he gets the same result with real money, he can go with big capital.