Demo Account, Should Not Be Related To A Real Account

[Kelvinid]

...
~why do you think people still start making losses on real accounts after long time trading demo successfully

Just to know that losses are real when trading.
There are so many factors that could affect our trade when using real money;
 - emotions
 - mindset
 - Technical analysis
 - strategies

Many people think about why but never see that they are changing when they use their money unlike when they are just using free money.

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[wxa7115]

When I first learned to trade in cryptomarket I learned to trade with DEMO account. But it will be very useful for new people who want to learn to trade. But I don't know if using it will give insight to all types of trades. But now I have approx.  Good idea about the trade.

The best is to use little amount of money to trade, with that you will be able to access all the features that you want to learn. I remember when I started to trade, I can buy a coin with just $1, but I go as high as $10 to learn.

Some exchanges like Binance require at least $10 for spot trading.

With future trading, I can use $2 to trade in a way I can use 5x leverage with it.

Those are small amount that can be used to learn how to trade.

You can trade with that amount of money if you want but unless that amount is somehow significant for you then there is not much of a difference on using such a low amount and using a demo account.

And this is because even if you were to lose that small amount of money you will not think much of it since the losses are so small, so at some point regardless of how ready we may believe we are we will need to begin to trade with amounts that are way higher and in which a single loss can be painful to the point you could abandon your strategy to try to recover the money you just lost.

[Strongkored]

~why do you think people still start making losses on real accounts after long time trading demo successfully

Because in a demo account traders will not have pressure to make a profit, and whatever the results traders will not face problems, it is very different when already using real money the pressure will be very enormous, which is why demo accounts are only useful for beginner traders to know the features about trading on the exchange, but success on a demo account is not a benchmark that traders are ready to use a real account and start with real money too.
Especially on a demo account, usually the exchange will provide unlimited funds so that when you experience a loss, the funds are available again, while with a real account, the funds really depend on the ability of the trader, how much he has and how much he can afford to lose

[jrrsparkles]

Now my question is
~why can't we relate demo accounts to real accounts
~why do you think people still start making losses on real accounts after long time trading demo successfully

If the person is just following what they did with the demo account they can convert success into real account too but most of them not able to follow.

Its real money so they can't convince them to make bold moves like they did with demo account so its a battle between emotions and strategy but at the end emotions win on most cases.

[bakasabo]

I am against demo accounts. To me, it's like cheating in a video game, or like saving/loading before a difficult boss stage. I'm saying that you won't learn anything from demo accounts. I dont believe that a person has not yet learned the rules of "buy low, sell high" in his life until he got acquainted with the stock exchange, or does not know the difference between "more and less". Imo, demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.

[Fredomago]

...
~why do you think people still start making losses on real accounts after long time trading demo successfully

Just to know that losses are real when trading.
There are so many factors that could affect our trade when using real money;
 - emotions
 - mindset
 - Technical analysis
 - strategies

Many people think about why but never see that they are changing when they use their money unlike when they are just using free money.

When using practice or demo account you are always willing to push for what you think is good for your position, win or lose you are not affected as you can always try back and see if your strategy will work, but when using real money to stake and risk, the selections that you provide are the most common reasons why traders losses their money.

It's difficult to make your decision when the market is not favoring your position, when the directions is not moving to how you project your analysis, most of the time your emotions will overcome your plan strategy and change everything, fearing that you will going to lose and avoiding further damages with your initial capital.

[justdimin]

demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.

Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.

In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.

[Lanatsa]

demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.

Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.

In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.

Pretty sure that you wont really be having that backtracking when you are dealing with demo since you would really be testing out another strategy that would work and since you arent losing money with demo

trades then this is where you would definitely or probably do most of the time which it is really that different when you do make use of real money on which on the time that you had lost a trade,

then you would be minding on where you did get it wrong and try to analyze it.Well, this would really be depending on a certain individual because not everyone will really be thinking the same.

[kawetsriyanto]

~why can't we relate demo accounts to real accounts

When you use a demo account, you don't do real trading. It is only a simulation trading, you won't earn money as well. So, why it is needed to relate to real account? Using a demo account isn't a must, anyone can trade without using it first. We should understand that using demo account is an optional, it is not a crucial part of the real account.

~why do you think people still start making losses on real accounts after long time trading demo successfully

If you spend a long time on demo trading, it only wastes your time. It never guarantees a success for you trading, it only helps you to understand how to trade is. In real trading, there are many factors to influence the result of our trading that we can't see it in demo trading. As @Ratimov said, "there is no market makers, no exchange bots, and no whales". Without these factors in demo trading, surely we can easily trade successfully. While in the real account, to succeed in trading, we must deal with those factors.


Check: Trading demo account

[Smartvirus]

Now my question is
~why can't we relate demo accounts to real accounts
~why do you think people still start making losses on real accounts after long time trading demo successfully

Demo account is relational to real or live trading account alright. In both cases, your trading the actual market, under going same market condition, building strategies that could function in both demo and live market but, the difference always comes in in the sense that, one is your actual/real money and the other is not.
Hence, there is a different emotion to this. Whatever the outcome might be on a demo account, you can easily get to accept it. What's the worst that could happen, you exhaust your funds, create a new account and get funds, then your back again.

On a real account, losing your funds means you get to fund it again out of your pocket and that hurts. You get emotional on every trade and more than hopes to get it right and that's enough to make errors. In either case, is always nice to start trading on a demo account.

[bakasabo]

demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.

Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.

In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.

Why do you think people dont learn in real accounts also? If you meant that  they dont care about money, then yes, such person dont learn from losses. I see a loss in trading as putting a hand into open fire. One time is enough to find out that it hurts. There are cases that sometimes a person must burn a bit/make a sale with a loss. But that is a necessity. A person must be very stupid if he keeps on loosing aka putting hand in a fire, doing similar actions. Demo accounts - it is like putting a hand in fire, but with a thick protective glove.

[Fredomago]

demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.

Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.

In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.

Pretty sure that you wont really be having that backtracking when you are dealing with demo since you would really be testing out another strategy that would work and since you arent losing money with demo

trades then this is where you would definitely or probably do most of the time which it is really that different when you do make use of real money on which on the time that you had lost a trade,

then you would be minding on where you did get it wrong and try to analyze it.Well, this would really be depending on a certain individual because not everyone will really be thinking the same.

Getting to that opinion, we do have differences and like you mentioned actual trade with real money is far different from the demo account, if you lose in the demo you can easily recreate and re-try a new strategy that you think will work for you, while with real account using your hard earned money, the emotions mostly cover and dominates your decision making.

It's tough to see that you are losing by mistakenly judge the possible market movement, you can re-create your strategy but there's already money involve that you need to accept that you lose.

[Zilon]

Demo experience can not be compared to real account experience. In demo there is no tension, no greed, sometimes the trader might open a trade and hodl for days because there is no limit to the amount of funds received from demo accounts.

With real account, the trader funds what the can afford and boom tension sets in. The greed to move $100 to $1000 in three days drive the trader. If it turns out positive, then $10k becomes the next challenge. Real money comes with this unsatisfaction, the urge to make more will always be there. I see demo account has a tool to familiarize with the trading interface before going life and not a determinant of what happens in live accounts.

[inthelongrun]

This is just like the saying that talk is cheap. In demo accounts, we can make it grow using technical and fundamental analysis. What is missing though is the psychological effects which is part of trading. That is why I am not really a fan of demo accounts. I tested some of my strategies before by simply basing them on past candles and trends. And I would rather trade small in a real account like $100 rather than do demo trades. We can always start small in order to avoid our emotions affecting our trade analysis.

[Oilacris]

This is just like the saying that talk is cheap. In demo accounts, we can make it grow using technical and fundamental analysis. What is missing though is the psychological effects which is part of trading. That is why I am not really a fan of demo accounts. I tested some of my strategies before by simply basing them on past candles and trends. And I would rather trade small in a real account like $100 rather than do demo trades. We can always start small in order to avoid our emotions affecting our trade analysis.

Not only psychological but also with emotional aspect where it does really play a big part when you do make out some trading decision.It isnt something that you would really be needing to forget.
You cant really make yourself to be that a good trader if you havent been able to mold this part because aside from knowledge, you would be still needing to enhance your emotion.
When you are practicing with demo trading then its something that really very hard just because you do find yourself that too missing the main aspects which
it is really need to be practiced and this is why i do prefer on doing live trading.

[Fredomago]

This is just like the saying that talk is cheap. In demo accounts, we can make it grow using technical and fundamental analysis. What is missing though is the psychological effects which is part of trading. That is why I am not really a fan of demo accounts. I tested some of my strategies before by simply basing them on past candles and trends. And I would rather trade small in a real account like $100 rather than do demo trades. We can always start small in order to avoid our emotions affecting our trade analysis.

Not only psychological but also with emotional aspect where it does really play a big part when you do make out some trading decision.It isnt something that you would really be needing to forget.
You cant really make yourself to be that a good trader if you havent been able to mold this part because aside from knowledge, you would be still needing to enhance your emotion.
When you are practicing with demo trading then its something that really very hard just because you do find yourself that too missing the main aspects which
it is really need to be practiced and this is why i do prefer on doing live trading.

Being keen in learning will enahnce and established best practices during demo but still the emotions that will drives you differently when it comes to a real money or real trade that compose of your real investment, all can be done but the outcome is different from one take to another, when you already experiencing real losses in your money then you will realized that there are always emotions that you needed to work on and it won't be easy but still doable if you really wanted to succeed from this field.

Live trade will teach you everything, but mostly in the part where you needed to play with the right emotions during your decision making.

[Raflesia]

This is just like the saying that talk is cheap. In demo accounts, we can make it grow using technical and fundamental analysis. What is missing though is the psychological effects which is part of trading. That is why I am not really a fan of demo accounts. I tested some of my strategies before by simply basing them on past candles and trends. And I would rather trade small in a real account like $100 rather than do demo trades. We can always start small in order to avoid our emotions affecting our trade analysis.

Not only psychological but also with emotional aspect where it does really play a big part when you do make out some trading decision.It isnt something that you would really be needing to forget.
You cant really make yourself to be that a good trader if you havent been able to mold this part because aside from knowledge, you would be still needing to enhance your emotion.
When you are practicing with demo trading then its something that really very hard just because you do find yourself that too missing the main aspects which
it is really need to be practiced and this is why i do prefer on doing live trading.

This is important because when I look at the demo account and the real account, I personally feel different things because I only use this demo account to play games, regardless of anything being there, clearly without any emotion.
Unlike the view when we are on a real account. This is very much different from feelings because sometimes you are afraid to do something and other worries always come.
I've tried a few months in daily trading and for now I seem to be too cowardly for that and prioritize long-term investments over day trading.

[len01]

~why can't we relate demo accounts to real accounts

because the demo account uses fake money or fake funds.
and a real account using real funds or real money. so it is very different and can not be connected

~why do you think people still start making losses on real accounts after long time trading demo successfully

because of a change in mindset and a little psychological change.

a person uses fake funds in a demo account, he will not feel a loss if he loses a few dollars if something goes wrong while trading. so that the mind is calm without emotion when trading which will generate profits.
but when someone uses real money when trading, they will always be afraid to take the next step to get bigger profits and the fear of losing money causes the mind to become uncomfortable and unfocused when trading.
So, psychological changes when trading from a demo account to a real account will be very influential.

[Yamifoud]

This is important because when I look at the demo account and the real account, I personally feel different things because I only use this demo account to play games, regardless of anything being there, clearly without any emotion.
Unlike the view when we are on a real account. This is very much different from feelings because sometimes you are afraid to do something and other worries always come.

We become emotionless because we don't care if ever we lose as we don't use money from our pocket, unlike if we are using a real account. We can take the risk to the highest level without any hesitation and become aggressive which is not really or barely happen when are do an actual trade.

I've tried a few months in daily trading and for now I seem to be too cowardly for that and prioritize long-term investments over day trading.

At this time, we need security and profit assurance which certainly could affect our decision and mindset. Fear and doubts increase especially if we suffer losses which we never find this feeling while using a demo account.

[South Park]

This is just like the saying that talk is cheap. In demo accounts, we can make it grow using technical and fundamental analysis. What is missing though is the psychological effects which is part of trading. That is why I am not really a fan of demo accounts. I tested some of my strategies before by simply basing them on past candles and trends. And I would rather trade small in a real account like $100 rather than do demo trades. We can always start small in order to avoid our emotions affecting our trade analysis.

Not only psychological but also with emotional aspect where it does really play a big part when you do make out some trading decision.It isnt something that you would really be needing to forget.
You cant really make yourself to be that a good trader if you havent been able to mold this part because aside from knowledge, you would be still needing to enhance your emotion.
When you are practicing with demo trading then its something that really very hard just because you do find yourself that too missing the main aspects which
it is really need to be practiced and this is why i do prefer on doing live trading.

This is important because when I look at the demo account and the real account, I personally feel different things because I only use this demo account to play games, regardless of anything being there, clearly without any emotion.
Unlike the view when we are on a real account. This is very much different from feelings because sometimes you are afraid to do something and other worries always come.
I've tried a few months in daily trading and for now I seem to be too cowardly for that and prioritize long-term investments over day trading.

Demo accounts have their uses as they can be used as a way to test new strategies without risking your capital, this way you can learn what works on the markets and what does not work as well, however it is undeniable that demo accounts have their limitations as well, and one of the most obvious one is that since you are not using real money you do not feel the fear or the anxiety that trading with real money can cause you, so this should always be taken into account when we are trading with demo accounts.