Hi everyone, I’m new here and this is my first post, so forgive me if this thread has been done to death.
I have a question regarding live Accounts. I just keep hearing how different they are from demos, just that I’ve never seen somebody pinpoint the exact reason as to why this occurs. So, can you shed some light on the issue? What makes live trading so much harder than demo accounts? The fact that it’s real money? Different system?
Any help would be appreciated.
Im by no means an experienced trader, but IMO its all about psychology. When i went live with my first account after 2 months of demoing, i lost 800$ (i’m 18 and for me that is a fortune) rather quickly. The reality is there is no actual difference between demo and real money except the way you react to it. People tend be afraid of trading their money because they risk losing it with every trade, however this limits the effectiveness of your system, and more often then not, destroys your accounts. People get frustrated when they have a losing streak with real money and lose faith in their system, they think switching to a new system will make a huge change, when in reality all you need is a small edge and you will be profitable.
Trading is all about sticking to your chosen strategy like your life depends on it. If you begin to pick and choose only to take certain trades with the same signals, and if you don’t use money management youll be destroyed quickly.
The only difference is psychology. This may seem like a small issue to you now, but you’ll soon realize hust how much of an impact it makes.
Hope this helps
http://forums.babypips.com/newbie-island/9805-what-difference-between-demo-real-account.html
http://forums.babypips.com/newbie-island/8648-demo-live-account.html
IMO almost everything is the same, except the psychology, you know when you put real money on the table,