[Trading Q&A]
I got another question from a beginner trader.
“Why do I make money on demo and not on real?”
It is difficult to answer such a question without more information. Therefore, I will answer what is the most common cause of this situation.
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First of all it might be unfamiliarity with the trading system. Need more testing, analysis of your actions and more work on… demo.
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There is more courage on demo than in the real world. It is easier to make decisions. And if you have a problem here too - see point 1. Write down the rules of your trading system, prepare all the documents that will help you trade. Then, you need to test a lot, have a trade book, written down the rules of entry, management, exit, what kind of analysis you need to do, etc. You also need to work through some trades on a demo or simulator. All this in order not to have doubts and hesitation when entering the real market.
Next step in live trading. You must have a clear picture in your head if there is a signal or not. Then you enter with the smallest stakes the broker allows (because it is still a period of testing and refining the system).
The best traders (e.g. Joe Ross) even after many years often come back to demo - they check, test, observe. Only then they go live. Demo is not a shame, quite the opposite! It is a training ground.
PS. I recommend to look for solutions on your own. It builds knowledge and skills very solidly and quickly. The mind learns to automatically react to problems and find solutions.