is Demo account truly a test tool for live account?

[Agathamay]

the major purpose of these thread is to have a peaceful discussion on peoples experience with jumping into live account after several successful trades on demo and suddenly start making losses after funding and trading with real money, because i have heard people make such complains which also shows that i was not alone in all of that dramas and did anyone experience similar cases and how did you get to manage it ?

Honest experiences will really be appreciated for others to learn from it

[Oshosondy]

I have also heard about this before from two traders. They said demo is simpler because no real money is involved and because no emotion is involved.

If they  get to real trading, emotion starts, trading with real money and the loss will begin.

I did not use demo to start trading, but I suffered losses also. Trading is very risky.

[Zaguru12]

I have also heard about this before from two traders. They said demo is simpler because no real money is involved and because no emotion is involved.

Let’s face the reality trading is mostly about how one can control their psychology (emotions) i categorically can say it takes at least 70% of one been successful in trading because if you can control your emotions very well and then have the required knowledge to analyze the market then no matter how the condition of the market the trader will be at more profit or break even than at loss.

Now to a demo account, does it have any emotions attached? It is No because the funds are there and the trader knows he losses nothing. I have always said this demo accounts are simply there for a trader to simply test the features of the trading platform and understand how it works but nothing more like a real trading.

In demo trading you see traders been able to hold trading for some time but when it is on real account there emotions are tested and this where real trading starts.

So yes there is high probability of one losing after a successful demo trading journey because emotions are essential part of trading which isn’t there in trading with demo account

[tvplus006]

...did anyone experience similar cases and how did you get to manage it ?

As a rule, using a demo account, traders ignore risk management, as they are not testing the strategy for real money. Therefore, when he moves to trading on a live account, he makes the same mistakes that he made when trading on a demo account, and this leads to a loss of money.

[_act_]

...did anyone experience similar cases and how did you get to manage it ?

As a rule, using a demo account, traders ignore risk management, as they are not testing the strategy for real money. Therefore, when he moves to trading on a live account, he makes the same mistakes that he made when trading on a demo account, and this leads to a loss of money.

What that is also very dangerous about trading is when you are making money, it is very similar to some extent to making money from gambling. Making money in trading will let you think that you are good. The trader will not know when he will make poor decision like increasing the amount of money he is using to trade and the loss will begin at anytime. I have seen many traders before, they will think that they are good, but they can not live with trading because it will be a miserable life of pain for them.

[ContentWriter]

You already have your answer from the first comment. It boils down to emotion. You're naturally relaxed when using the demo account. Demo account trading is like a video game. You are more objective using it because there is nothing at stake. The FEAR and GREED factor kicks in when you fund and start trading a real account. Fear makes you exit during dips which may recover and give you profit. Greed makes you want to gain more when you could take a little profit and try again later.

Trading success cannot be separated from emotional stability. Experienced traders lay emphasis on risk management knowing they could win or lose. They also are not controlled by their emotion after they have done the necessary research and analysis before openingpositions. They trust not only their research but their gut. This comes from experience. When a trade goes awry, they most certainly go back to know what went wrong and learn from that oversight.

[Strongkored]

A demo account can help you in principle, just like when new traders start trading, there are many terms that they don't understand. A demo account can be helpful, but it won't improve your trading skills, because there is no pressure, so caution is not a priority. In my opinion, it is better to trade with small amounts of money than a demo account, because with real money it will make traders more serious about improving their skills.

[_act_]

A demo account can help you in principle, just like when new traders start trading, there are many terms that they don't understand. A demo account can be helpful, but it won't improve your trading skills, because there is no pressure, so caution is not a priority. In my opinion, it is better to trade with small amounts of money than a demo account, because with real money it will make traders more serious about improving their skills.

Demo account was not useful for me as I started using money to trade at the beginning. I used $25 to learn how to trade, I was using $2.5 from it on future trading which was enough for me to trade in the future market. Demo account is not necessary at all in learning how to trade, but just that some people may be panic until they use demo to trade before they will not panic. But when I learn how to trade, most crypto exchanges did not have demo account.

[noorman0]

Demo accounts are only limited to training traders' intuition to find out how precisely they apply the technical analysis they focus on, that's all. But make no mistake, demo accounts also provide limited virtual capital. If someone wants to practice seriously from zero ability will not spend it by opening random positions every penny.

It just depends on how someone wants to treat a demo account, whether they just want to test their analytical skills or more than that. I don't think demo accounts are useless at all.

[TheUltraElite]

You can actually do dummy trading with imaginary funds but real positions on paper. Just watch the market and write down these orders and calculate how much profit you make once those trades are executed.

I dont think you will need a demo account on a site for that, you can do it on paper and your own. It will help you overcome your fear, gain confidence and learn patience over time.

Eventually when you feel confident, start putting in real money.

[Lida93]

the major purpose of these thread is to have a peaceful discussion on peoples experience with jumping into live account after several successful trades on demo and suddenly start making losses after funding and trading with real money, because i have heard people make such complains which also shows that i was not alone in all of that dramas and did anyone experience similar cases and how did you get to manage it ?

Honest experiences will really be appreciated for others to learn from it

You should know you can't compare demo trading to real live trading that involves real money. Even the traders reactions, response and approach to every single price action while the trade is on course wouldn't be same.

A trader using demo can calmly overlook and exercise patient with a market price action that appears to be going against his trade, which after a few hours later could reverse and put you back into safe zone, but such patience may not be exercised with real money at stake the psychology becomes totally different as the trade may wanna play safe by exiting the trade to save what's still left.

[sokani]

the major purpose of these thread is to have a peaceful discussion on peoples experience with jumping into live account after several successful trades on demo and suddenly start making losses after funding and trading with real money, because i have heard people make such complains which also shows that i was not alone in all of that dramas and did anyone experience similar cases and how did you get to manage it ?

Honest experiences will really be appreciated for others to learn from it

One of the reasons why traders tend to do better when trading on a demo account than a real account is emotion. Demo has no real cash involved and traders are not under any form of pressure. But with a real account and with real cash at stake, they are gripped with emotions. They may be afraid to execute the trade, they may be resistant or even become greedy, which could affect their decision-making and thus result in a bad trade.

[Nahl]

Demo account usually the features for forex trading and with this account people have their chances to test their own strategy how to take profit or learn about market condition and sometimes managed their psychology besides that we can know our winning percentages while trading and demo account also can became a measuring tool whether you are ready or not for entering the real market but just like people said that because we only used demo money to trading then the excitement will be very different if trading using real money but demo account is good to learn about trading platform

[Finebone]

the major purpose of these thread is to have a peaceful discussion on peoples experience with jumping into live account after several successful trades on demo and suddenly start making losses after funding and trading with real money, because i have heard people make such complains which also shows that i was not alone in all of that dramas and did anyone experience similar cases and how did you get to manage it ?

I don't like demo trading and I will never encourage it because it has no positive impact on a newbie trader. The only useful thing I think it does is to help a newbie trader learning how to place a trade, set stop loss, then that's all, because it's totally different from real trading when money is involved.

I will always recommend a newbie trader using a very tiny amount of money that wouldn't have any effect on him if he loses it to learn than using demo accounts that your emotions like fear and greed wouldn't come into play, because it's only in demo trading a trader can open a trade and leave it open for days or weeks without if checking how far it has gone, but in real trading, you can't try that shit, no matter how small your margin is.

[Yamane_Keto]

This can happen to beginners, as demo accounts don't require real money and there's no financial risk involved. trading results with them are often better than with real accounts, which could lead to losses. experimentation and starting to trade with money you don't fear losing can improve trading results compared to demo accounts.

[joeperry]

I agree with @Oshosondy it's really different if real money is involve especially if its your hard earned money that's why it's important that before trading, you are ready of the consequences and make sure that you can afford to lose that amount. When I first started my trading journey I really didn't go with demo account since I want to experience it first hand (the risk and all) and what I did is, instead of having a demo account, I started with small balance, I think it's only around $10 to familiarize the market and test some simple strategy I've learned when I was new.

After some time, when I already know how the market works and how risky it is, that's the only time I started funding my account. For me, it's better to start with small amount than with demo so you'll also be able to learn how to control your emotion from the start as part of your practice.

[Dechris_08]

the major purpose of these thread is to have a peaceful discussion on peoples experience with jumping into live account after several successful trades on demo and suddenly start making losses after funding and trading with real money, because i have heard people make such complains which also shows that i was not alone in all of that dramas and did anyone experience similar cases and how did you get to manage it ?

Honest experiences will really be appreciated for others to learn from it

In my opinion, demo trading is just a bridge between backtesting your strategy and going live.

If you’re not sure your strategy works yet, there’s no point risking real money.

First, you backtest. Then you test on any kind of simulated environment.

Once that’s done, demo trading is the next step but only for a short period, maybe a month.

The goal isn’t to stay in the demo forever. It’s to see if your strategy can survive in live conditions without risking real money.

[Yorubek]

I have also heard about this before from two traders. They said demo is simpler because no real money is involved and because no emotion is involved.

If they  get to real trading, emotion starts, trading with real money and the loss will begin.

I did not use demo to start trading, but I suffered losses also. Trading is very risky.

Of course trading is really risky, not everyone succeeds in trading, in reality, a person can become emotional through trading, so the chances of losing money can increase many times more than making money. It is not easy to achieve success through trading. We can gain different knowledge about trading through a demo account. Demo account help with different ideas about trading. However, it is much easier to control your emotions by trading on a demo account, because there is no need to invest money in reality, so you can make a profit by trading through a demo account.

[Coyster]

I would give you a good example. Ever seen a sports gambler who claims to have all of the right results in his head when he is wagering nothing, but when he puts his money on the game, he wins nothing, lol.

Demo trading is good, but nothing compared to the real stuff. There is added pressure in anything when your money is on the line. Many times i beat my friend when we play ps5, but when we put our money on the line, i no longer play as good as i used to when we had nothing to lose. I think it is just normal, so when trading with real funds, don't forget to implement risk management strategies.

[Rruchi man]

the major purpose of these thread is to have a peaceful discussion on peoples experience with jumping into live account after several successful trades on demo and suddenly start making losses after funding and trading with real money, because i have heard people make such complains which also shows that i was not alone in all of that dramas and did anyone experience similar cases and how did you get to manage it ?

When people trade on demo accounts, their focus is mostly on learning a working strategy for the market, and strategy alone is not what will help you to be successful in the market. There is little or no focus on mastery of psychology, which is very important; hence, the reason you will find new traders from demo to the live market still making losses with their winning strategy because it is not enough.

The live market will school you in psychology if you are poor in it. If you cannot learn, you will never make a good profit.