It’s one of the key points, as I said above. Sticking closely (often far more closely than experienced traders) to simple strategies is also a factor.
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Of course, I agree with you! Thank you for your reply.
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I found out on my personal experience, that trading on demo and real differs, especially since most brokers have these accounts on different platforms. And when you move to real after demo, there’s always fear of loss and a feeling, that your money is real. But you answered your question yourself.
This often happens when the demo turns out to bring money , but the real account does not. Most likely it’s a question of psychology, so it’s better to study not on a demo but on a micro account.
sometimes i prefer micro instead of it, because in demo there is no real money and for that we cant trade here seriously
Demo is just to know how the system works and test your strategy. It is good if you know the winning ratio of your strategy by trading on demo. But usually most people use demo to see how much money they can make. They do not focus on creating a strategy. When you trade with real money, there works a fear of losing money. You become too much conscious about your decision. In demo you don’t affected by any emotions like fear, greed and overwhelming joy.
It’s the real problem when we trade demo there is no emotions , that’s why we trade here at random and found nothing from here , at the end the experience we get from demo not works in real account at all.
Yes, it happens with many traders as they lose the composure when they trade live. You can never change the strategy when you trade on the live account. Take demo trading as serious as live. Many people also spend 3-5 days on the demo account and they think that it is easy to go live. Those people lose, you need to spend at least 4 months on the demo.
demo is a place to prove yourself how can you handle trading strategies you have , so, don’t ignore the demo , you suggest 3-4 months to stay in here , its a long time for beginners level to keep patience in here, that’s why i prefer minimum 1 months for that.
This is a oftenly occuring event. People are successful in demo account and fail in real life because there is fear of losing investment in real life. Fear is in the back of your mind. You let your emotions take over you in real trading. I think it is the main reason of failure.
very good point you have noticed " fear"… thanks for nice post
Basically, new traders use heavy trading lots size in demo without any 2nd thought, and they carry their trades for a long time but in the live account; they are not.
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Can you please elaborate what actually 2nd thought ?
2nd thought actually maintaining myself and first though always indicates emotions and greed.
In a demo account you win because you trade fearlessly. You didn’t lose your money in a demo account that’s why you become patient and relaxed while doing demo trading. Live trading is too difficult because in live trading there are huge chances to lose the money.
It depends on different factors that how you manage both accounts. If you really want to earn money then you will be serious at your learning with Demo account.
If you watch closely the price on a demo account and a live account from the same broker, side by side, most of the time it is in sync. Watch again when price approaches a critical S/R level and you may see one lag the other! That may well be broker manipulation. That may go some way into explaining why your SL’s get triggered on your live and not your demo, or your profit target gets reached on your demo, but misses completely on the live.
It may not be psychological / human factor as is widely accepted. The way to get round this is to trade off a demo and link it to a live using a mirror like FXBlue.
do you manage at all demo or real account at the same time ? any experience ?
Live trading is very different from demo trading. Because in live trading you lose your money. Loss of money causes huge affect on your emotions. You have to control your emotions, avoids risks and you have to think well before making any move.
I have learned that managing your risk is never going to be easy. Sometimes we win and sometimes we have to accept the loss.