is Demo account truly a test tool for live account?

[sheenshane]

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 ?

It is completely normal for traders to incur losses at the beginning of trading.

Honestly, this is right, with that short line, you will understand that trading doesn't have a shortcut to success.
Firstly, you need to encounter such losses and gain knowledge from them while dealing with those failures.

The reason why it has a different outcome when you trade using demo and use real money is that demo is lack of consequences that you might learn while in real money is mixed it up.  There are emotions, greed, and it might hesitation to execute a good trade will have a negative effect.

On my part, it took years before I stepped into trading.
But still, I experienced minimal losses, but at least I started with a small and scale strader.

[Faisal2202]

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 have not tried demo accounts, but before I stepped into trading, I used to do paper trading, like buying and exiting on paper, not buying or selling in reality. So, it gave me some idea on how much I can make and lose and how much stressful it can be. But I have to admit, I was not that serious that time, I took things very lightly and did not learned much because my only concern was how much I could make.

I completely overlook the loss.

I stepped into future trading as a newbie haha, the worst step ever, it was real stress when you are a newbie,, especially, because building up stamina for seeing loss is necassary otherwise without this stamina, everyone will panic and their days will be bad too. So better to build up stamina than lose money as fast as its possible.

[YOSHIE]

is Demo account truly a test tool for live account?

In the world of trading, a demo account is a learning method for beginners, but it is not recommended as a basic trading guide, only limited to understanding how to trade crypto well.

As far as I know, the demo account is only a theory, while practice in the field will be much different from the demo, in crypto trading apart from the demo account, a mentor is really needed to control the direction of the trading activities you carry out.

[Findingnemo]

With demo account you can test your strategies but with real money it always feel different because emotions will come into the picture that always influence our trading decisions. So you need to go with the same confidence in real trading too as demo account but it comes with more risks, so you need to decide how you want to proceed?

[xLays]

I remember when I first started trading, I noticed that I when I'm using demo account I often get right trades but once I switched to real account, I kept ending up with losses. Yes at first I thought my strategy was the problem, but I realized the main difference was my mindset. In demo trading there is no fear because the money is not real, so it is easier to stay patient and follow the plan (If you have one) lol
Its like in real trading emotions take over. Fear makes me close trades too early while greed makes me hold longer than I should. Sometimes I even risk more than I planned hoping to recover losses faster. Yes it's all about emotion.

[el kaka22]

Demo is a place to learn, so it can't give you better results right away. If you learned, used demo, got good results and actually did learn something, then yeah it will work for you. But, just because you used demo and made some money doesn't mean you will profit, it will not be as simple as that, most people miss that part and end losing money.

Demo isn't guarantee of anything, it's just a tool to use while learning about crypto trading, it's a useful tool of course but it doesn't mean you are surely profiting. I would say you should still use it, like learning about analysis and using demo would be a good start, but keep your expectations low because there are many who used demo and lost too, while some earned, we can't know which one you will be.

[Muba20]

I think this is a very common affair. When trading with a demo account, the trader has a great experience, but if that experience is used to trade in real life, then some inhibitions are created. Naturally, when someone trades with a demo account, he trades without any pressure. There is no thought of losing money. This kind of situation does not arise in normal real trading because if there is a mistake at that time, real money will be lost. Even if a trader makes some mistakes in the beginning, I think they can overcome those mistakes within a few days. Although there is no much advantage with demo accounts, a trader can learn a lot about trading which is very useful in his real trading.

[Franctoshi]

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

Not at all, everything looks very differently in terms of how the market reacts in live market, Using Demo can help you master how to navigate the technical tools available to you which helps you in your market analysis. Demo account trading will teach or pre give you hints on what your experience is likely going to be during the process of trading or when you start trading the live market 📈📉

[ZAINmalik75]

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

Yes, this drama is real and it happens with almost everyone, because no matter for how long we prepare on a virtual and controlled market with fake money, no matter how much we analyze charts and create patterns, we can't solely depend on it.

When we enter the market, we face real pressure and we do not think straight.

But it does not mean, we should not start with demo accounts, every newbie should start with demo accounts. Because with that, they at least learn how to setup trade, how to read candle, they are ahead of millions, so with all that knowledge they benefit at some point unlike those who directly start with real trading and even with future trading.

[r_victory]

I believe that what negatively impacts the experience in a demo account is that you operate without fear of losing, since the money isn't real. When you enter the real world of trading, you end up carrying over the same behavior you had before, and that's where the frustration comes in; everything seemed so easy, so simple before. Here in Brazil, we had a resource that was incredible and extremely useful to me: a stock market investment simulator where we received a certain amount of money and could trade in real time, of course in a separate environment, but even so, it gave you an idea of ​​what it was really like. There were even prizes for the best performers. The demo account should be used for learning, for practice, to acquire knowledge.

[Agathamay]

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.

funny enough, living is already risky and only those who take calculated risk can survive.

i agree with you because the moment we hoop into real life trading, we tend to try to be very careful and in some cases forget the same principles we used in trading on Demo and end up in losses and one other major challenge is hoping to rebuild our lives with the trading capital and its returns, thereby putting so much pressure on ourselves and expecting so much from the market

I believe that what negatively impacts the experience in a demo account is that you operate without fear of losing, since the money isn't real. When you enter the real world of trading, you end up carrying over the same behavior you had before, and that's where the frustration comes in; everything seemed so easy, so simple before. Here in Brazil, we had a resource that was incredible and extremely useful to me: a stock market investment simulator where we received a certain amount of money and could trade in real time, of course in a separate environment, but even so, it gave you an idea of ​​what it was really like. There were even prizes for the best performers. The demo account should be used for learning, for practice, to acquire knowledge.

most times i think the major purpose of the demo account is to help us get familiar and acquainted with the Brooker we intend using and not necessarily mastering the act of trading and also in demo trading there is absolutely no fear of lose because we can refill the demo amount as much as we desire.

i don't know if you have heard of TenTrade platform, they offer opportunity fir traders to buyer to buy accounts with high trading amount and profits are shared, i can't explain how it is done but you can check them out as i'm not doing an advert for them

[shinratensei_]

I believe that what negatively impacts the experience in a demo account is that you operate without fear of losing, since the money isn't real. When you enter the real world of trading, you end up carrying over the same behavior you had before, and that's where the frustration comes in; everything seemed so easy, so simple before. Here in Brazil, we had a resource that was incredible and extremely useful to me: a stock market investment simulator where we received a certain amount of money and could trade in real time, of course in a separate environment, but even so, it gave you an idea of ​​what it was really like. There were even prizes for the best performers. The demo account should be used for learning, for practice, to acquire knowledge.

That is actually interesting. Investment simulator, basically a demo account but make a leaderboard and award prize to top performer so every lose will be more impactful and it add weight to the action.
This should actually work better than just a demo account and if only some exchange willing to make this kind of program, could be very helpful for newbie trying to learn trading even if the prize isn't that great.

The demo account of now is just being used by scammers and fake trading gurus to create fake PnL instead of being utilized the right way.

[michellee]

People can learn trading using demo account. They don't have losing real money in trading until they are ready to do real trade in the exchanges. But most people don't want to use demo account and many reasons that they don't feels the challenging.

If you learns more about trading and use demo account, you can know how the market movements. You learn how to anticipating the situations while you can also learn about controlling yourself. Demo account will gives benefits to you so you should know although for a little.

[Minor Miner]

People can learn trading using demo account. They don't have losing real money in trading until they are ready to do real trade in the exchanges. But most people don't want to use demo account and many reasons that they don't feels the challenging.

If you learns more about trading and use demo account, you can know how the market movements. You learn how to anticipating the situations while you can also learn about controlling yourself. Demo account will gives benefits to you so you should know although for a little.

Demo account can be helpful for beginner to familiarize themselves with the trading environment. But it does not offer much benefit when it come to trading psychology and controlling yourself
With a demo account, we are simply in a simulated environment where every decision has no real world consequences. If we do not experience the pressure of losses, the fear of losing real money, how can we learn to control ourselves?
Or to put it bluntly, we will not learn or gain anything about emotional control by using a demo account. Sometime, we can develop bad habit if we use a demo account for an extended period.

[Awaklara]

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

Once you are proficient enough and accustomed to trading, you may no longer access a demo account, even when trying a new exchange. Demo accounts help beginners, especially those with no prior trading experience.
Losses and profits are part of trading. You need to have the right strategy to minimize your losses. Nevertheless, beginner traders are advised to try a demo account first.

[macrolens]

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

A demo account is the closest thing we have to real trading, especially for learning and testing trading logic. Its main weakness isn’t price accuracy, but the lack of real risk and psychological pressure, along with simplified liquidity and execution effects. That’s why demo results often fall apart when moving to a live account. Still, for algorithmic or rule-based strategies, demo trading is essential because it lets you test logic, risk management, and execution without financial damage. The real mistake is treating demo success as proof of mental readiness for live trading.

[shield132]

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

A demo account is not really a test for a live account because on a demo account, you trade with demo money, you have nothing to lose but everything to gain, so your thinking is different. When you start trading with a live account where you have your money in your deposit, you are under a completely different pressure because here you trade with your money and if you lose it, you'll lose it, you'll lose your hard-earned money. On a demo account, you risk differently because you know that it's not real money, so when you trade with a demo, there is a better chance of generating more profit because you are not in a panic mode and you are not under pressure, there is nothing on the line for you. Besides luck, trading hugely depends on your psychology. You have to have a strong psychology and patience to succeed in trading, but things become extreme when people try to earn a living from trading and have no other income source besides it.

[dwyane36]

A demo account is not really a test for a live account because on a demo account, you trade with demo money, you have nothing to lose but everything to gain, so your thinking is different. When you start trading with a live account where you have your money in your deposit, you are under a completely different pressure because here you trade with your money and if you lose it, you'll lose it, you'll lose your hard-earned money. On a demo account, you risk differently because you know that it's not real money, so when you trade with a demo, there is a better chance of generating more profit because you are not in a panic mode and you are not under pressure, there is nothing on the line for you. Besides luck, trading hugely depends on your psychology. You have to have a strong psychology and patience to succeed in trading, but things become extreme when people try to earn a living from trading and have no other income source besides it.

From a psychological perspective, trading on a demo account is pointless, as it doesn't improve stress resistance or discipline during trading. In my opinion, the only time a demo account can be useful is when you use a trading bot or other automated tools that need to be thoroughly tested before using them in real trading.

[Zigabel]

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

The fa t remains that demo Account provides you with the real market environment but sincerely not the experience, the emotions are actually  different when using paper money and real money.  It requires a tough mindset with discipline and sometimes experience to actually treat paper money like real money just to get that real market experience and feel, you will need to connect with it as though it is your real money that is at stake if not you are going  to get totally different experience.

One factor that gets this differentiation to happening is expectations, with demo accounts where you trade with paper money, your expectations are not attached with your emotions it makes it not real enough to connect your emotions with your trades but when you put in your real money, the emotional connection is different because you begin to make expectations based on results you had achieved with demo account and so you may likely loose it when you first switch from demo to real account. But it is actually different when you are a pro trader already and for the purposes of testing a strategy you decide to try it on a demo account. The experience are actually different but with discipline you can achieve very similar experiences with both demo and real account.

[Wapfika]

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

No real money involved means there’s no pressure on trading. No risk of doing early take profit or too late stop loss when emotion is involved due to money.

Live trading is much different now because you already consider the risk involved so your action is now limited and cautious that will result to confusion on your strategy.

Learning experience on actual trade will teach you a lot of valuable lesson compared to demo.