is Demo account truly a test tool for live account?

[Antona]

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

bro you def not alone here
Everyone kills it on demo then fumbles on live cuz psychology hits different.
best fix = lower lot size, follow one strategy only, and accept losses calm.
discipline > hype forrealls

[Pandorak]

The answer is NO. When you use a demo account for trading, you will be more careless in managing it, thinking that you can simply print more money when you experience losses. Psychology/emotions play an important role in decision making, this is on a different level and you won't get it with a demo account. You may feel confident with the consistent profits you make on a demo account, but things will be different when you switch to a live account, you may think twice before moving your finger to open a position.

Everyone who is new to trading will experience this, there is nothing to regret, just use your losses as learning material, you will develop faster if you experience losses in a live account. Personally, i consider it as learning money. The most important thing is to never take trading classes or signals, as they will not make you a professional trader. You will not know the reasons why you make profits and losses, even though those reasons are what make you develop.

[Y3shot]

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.

Demo trading is totally different from what real trading is, but I think it is not bad if a trader chooses to make use of it to see what trading is like because no knowledge is wasted. Even if there are no emotions and losses that one can really feel while trading with a demo account, practicing with the demo is the main component of trading.

When you trade with real money and you lose, you will definitely feel pain and emotion, and it is part of trading for one to try his or her best to control those emotions. In demo trading, you don't feel anything like emotion, and there won't be any need to learn how to control emotions because there are no emotions involved.

[crwth]

This is where you would see the difference between the real value and the simulated value. Having no real risk would lead you to take bigger trades because there are no consequences. It's a different ball game if you are talking about real money IMO.

There are a couple of differences with demo trading

• Execution of trades - liquidity, slippage, etc., are different
• The spreads are sometimes made to make you think you're getting great trades.
• Market depth might not be real

Most of the things a demo can't do are simulating the real stress one might encounter during trading. It's very different. Demo mode, IMO, is a way to study the UI, not the trading experience you get when trading in real markets.

[elzjmirra]

Not only heard but I experienced it myself, I often profit on a demo account but often go bankrupt on a real account when trading with real money, at first I did not know and felt strange about what happened but finally I found that the difference is mental, when you trade with real money it will involve a lot of doubts when you want to open a trade because of fear that in the end you are late in taking the moment so you miss and lose but on a demo account every decision will be very easy to execute.

[SamReomo]

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 ?

Demo accounts are good to learn trading interface of a platform or to make your strategy without facing any financial losses but it's not helpful to learn trading as trading involves presence of our emotions and with a demo account we don't have any such emotions even if we lose most of our trade we don't get sad and even if we win all of our trades we don't get happy but get excited to deposit real money and lose that because we aren't good at trading.

The trades who trades on demo accounts often face huge losses when they start trading with real money because such traders have no risk control mindset and they also don't know how to control their emotions like excitement, greed, or fear during different conditions of the market. Such traders often lose more money in long term because it will be hard for them to build a trader mindset by trading with virtual currency. So in my opinion, it's okay to begin trading with a demo account only to learn trading software interface but avoid it if you're choosing trading as a secondary source of income.

[DanWalker]

Not only heard but I experienced it myself, I often profit on a demo account but often go bankrupt on a real account when trading with real money, at first I did not know and felt strange about what happened but finally I found that the difference is mental, when you trade with real money it will involve a lot of doubts when you want to open a trade because of fear that in the end you are late in taking the moment so you miss and lose but on a demo account every decision will be very easy to execute.

That is why I never recommend demo account to beginner
Everyone says it is good and help newbies get acquainted with the trading environment. But in reality, learning how to use the interface or place order does not take too much time and is not too difficult. Even those with no prior trading knowledge only need 2 to 3 days to familiarize themselves with the interface and basic order placement.

The core elements of trading are emotional control and risk management, but demo accounts teach us almost nothing about that. Therefore, it is best to start with a real account and a minimum amount of capital.

[sana54210]

This is going to be risky because emotional trading is fine in demo and that is what most people do. Like if you just wild guess and do not really do anything for good, then it is not going to be that much of a good return for you and most people will make a loss but if you just so happens to be lucky and made some profit from your wild guess then you may just end up doing the same thing in real money trading hoping that you will get the same result and it may end up with absolutely nothing at all.

I think it's smarter to just avoid all of this all together and find a way to do this better on the long run. Demo is fine, but only if you stuck with strategies and analysis, not emotional trading. Otherwise you will lose a lot.

[Eternad]

I think it's smarter to just avoid all of this all together and find a way to do this better on the long run. Demo is fine, but only if you stuck with strategies and analysis, not emotional trading. Otherwise you will lose a lot.

Demo trading is not actually bad in general. It’s good to developed strategy and test it on demo first if you still don’t have a solid strategy being use on your real trading.


But trader just meed to be aware that the result varies on actual if the emotion is already included but if they can trade consistently in disciplined manner I believe strategy develop on demo will be successful.

The execution of the strategy is the deciding factor for the success.

[DPHOR]

To say the truth about live account and Demo account; I have traded on demo account before and my success rate towards the demo was so exceptional, when I double my balance within few weeks of using Demo. But I never knew that I was getting it wrongly because the demo account is never associated with the real live data, rather it is just a bot and never reflects with the live account, however after spending weeks and  months trading on demo I felt so strong and energetic with the hope that I can handle the real life market, but this i never knew they aren't the same and immediately I entered live account I began to noticed that they are not the same data, is very different from demo.

Now, my advice to you is that instead of you to trade on demo it would be good to start with real account then fund with little account, such as 30-50$ and start with to have the best experience in trading than using demo as the result is never the same.

[SmartGold01]

Well many people usually advise to start with demo trading to practice how your skills could be will trading, although anyone who is always clever can be that technical enough to increase their knowledge with demo trading but then, there are people who think demo is always the best while starting to trade but it is not always the same while having real encounter with those accounts. When you go live you would understand that there is a big difference between those accounts as demo is very easier to handle than the live account.

[Dr.Bitcoin_Strange]

Yes Demo account is a test or practice account, you can use it to practice all your strategy and learn how to approach the market, you could win so many trade on the demo account while on a live account, your level of success could be very different especially if you are a beginner, the reason is because the emotions you will use in trade demo account is not the same you will apply in live account. You will be more emotional and can take impulsive decisions when you trade with a live account but on demo, you trade it as if you don't have anything to lose because it's not your real money. I have had the experience too but how I came off it is to learn how to control my emotions and also I kept learning and even till today I'm still learning to become better.

[Swordsoffreedom]

Well many people usually advise to start with demo trading to practice how your skills could be will trading, although anyone who is always clever can be that technical enough to increase their knowledge with demo trading but then, there are people who think demo is always the best while starting to trade but it is not always the same while having real encounter with those accounts. When you go live you would understand that there is a big difference between those accounts as demo is very easier to handle than the live account.

There is no difference between a demo account and a real account in terms of interface, operation, and functionality. The difference is psychological, because when using a real account, we are using real money. At that time, our minds were dominated not only by knowledge but also by fear, greed, and pressure. Things we will never encounter when trading with a demo account

To succeed in trading, knowledge or strategies alone are not enough, we also need the ability to control emotions, manage risk, and maintain discipline

[terrific]

Well many people usually advise to start with demo trading to practice how your skills could be will trading, although anyone who is always clever can be that technical enough to increase their knowledge with demo trading but then, there are people who think demo is always the best while starting to trade but it is not always the same while having real encounter with those accounts. When you go live you would understand that there is a big difference between those accounts as demo is very easier to handle than the live account.

I agree, demo trades or accounts are not always ending up the same thing with how the real trades do.
Because if someone who keeps on testing strategies with demo accounts, they might be surprised why it turns out differently with the real trading.
But don't be surprised with that because, the demos are demos and we have no fear with that because it's not using real money.
Compared to the actual trades, we spend real money in it and that's why some decisions that we do in the strategies we use are ending differently with emotions.

[mindrust]

I don't believe this. In my opinion you can only learn how to trade if real money is on the line. The money you lost, that's what you pay for your education. Demo accounts can't accomplish that because there is zero pressure on you and that means you can lose that fake account balance freely without facing any consequences.

If you have a good trading strategy, do backtesting instead of wasting time with a demo account. If your backtest brings good results, it will probably do well on a real account.

[Oluwa-btc]

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

Previously,I came to realize something about demo accounts,one that frequently happens to almost every trader.Irrespective of the fact that demo accounts are for practices and preparations,the outcomes are usually different from each other.Many people do well there but fail using real accounts because of the nature of what demo accounts implies.I think demo accounts shouldn't be made easy and comfortable anymore,every tests should have a taste of what the real accounts would experience.

[asrinur]

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

dude that demo to live switch be humbling real quick. on demo you fearless but once real money on the line your brain start acting different and the losses hit harder. a lotta it is psychology overtrading second guessing and chasing moves. best way to manage it is sizing down sticking to your plan and treating it like demo till your emotions chill. You definitely aint alone that phase catches almost everybody

[BlackBaron]

Well many people usually advise to start with demo trading to practice how your skills could be will trading, although anyone who is always clever can be that technical enough to increase their knowledge with demo trading but then, there are people who think demo is always the best while starting to trade but it is not always the same while having real encounter with those accounts. When you go live you would understand that there is a big difference between those accounts as demo is very easier to handle than the live account.

Technically, demo accounts and real accounts are similar, but we will find differences when we get into money management, mentality and so on.  On a demo account we can easily make entries and when we lose, we will not regret anything because emotions are not involved.

But when we start trading with a real account, then emotions will come into play. The reason is very simple, we use real money, so as humans we don't want to lose money and from there our emotions will arise and our mentality when trading will begin to form, for example greed and fear. So you are right, we will find a big difference, but not in technicals but more about ourselves.

[Frankolala]

Yea, demo makes trading easy and hide the reality about what trading really is. The emotional feelings, the losses and many more wouldn't be felt because it's just like you are playing a game without staking on it. You will understand better and learn more when trading with real account because you will use some tools to stop loss and prevent you from a total liquidation when the price goes against you.

[Luke3bird]

This is where you would see the difference between the real value and the simulated value. Having no real risk would lead you to take bigger trades because there are no consequences. It's a different ball game if you are talking about real money IMO.

There are a couple of differences with demo trading

• Execution of trades - liquidity, slippage, etc., are different
• The spreads are sometimes made to make you think you're getting great trades.
• Market depth might not be real

Most of the things a demo can't do are simulating the real stress one might encounter during trading. It's very different. Demo mode, IMO, is a way to study the UI, not the trading experience you get when trading in real markets.

I would like to start with demo accounts for practing my trading with not real money from my fund. As I only read very basic about trading in cryptocurrency market, do you know any resources for learning cryptocurrency trading which you think can be helpful for newbies like me?

I also would like to get places to have available demo account and demo trading for my practice, do you know any platform with this things?

Thanks