I’d like to talk about DEMO accounts. I open 5 DEMO accounts and I have NEVER made a loss, even when I followed improbable theories. With the live account I suffered losses. How do we explain this? Blame of brokers? I’m not a conspiracy theorist.
I think in demo accounts we are the best version of ourselves, regardless of everything…we trade at the best. Should I trade in real thinking I’m in demo?
Your experience is very possible, considering the fact that with a demo account there is no psychological attachment to the trading. You will often hear that trading is 80% psychology and 20% strategy, if that 80% is taken care of while demo trading then your results are actually possible. Other than strategy, demo servers are actually different from live servers and slippage behaves differently on theses 2 servers.
A suggestion could also be that, you could analyze assets on a demo chart, and place trade positions on a live account and see if your theory could be duplicated.</p>
Expertise: currency strategist
I have had many years of experience on FX trade desks and I have published currency market research for many different trader websites.
I started my career in 1998 specializing in intraday strategies.
After 2001, thanks to the tech boom, I have enlarged my approach with Swing-Trading and Algorithmic-system.
From 2015 I'm carefully following the bitcoin boom, and now for all Altcoin growing.
Most of the new traders think like this. When you trade in a demo account, you don’t have emotions that you can make a loss. Your mind is free from everything, and you do all trades right. When you consider the feelings, you get a loss. So control emotions in this business.
There is huge difference between demo and live account. In demo, there is lots of imaginary money. Even if you make loss there is no tension and you can use big lot of trade. On the other hand live account has totally mind set is totally different from demo. There is always tension. If you try bigger lot like demo you will make loss. However, demo trading for long time is a must before enter into live market.
A trading account that allows an investor to review and test the features of a trading platform before funding the account or placing trades is a Demo account. A demo account gives you the idea of how to trade, how success in trading and the overall impression of how all the pair moves. You can execute a trade without losing money in a demo account.
Whereas, a live account shows you the actual movement of all the pairs. You will lose money in a live account. A live account teaches you to be patient about trading. You need to ensure that you fully understand all the risks and techniques about every pair. But you should practice trading in a demo account before opening a live account. It will help you to understand all the terms and conditions of the market.
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