is Demo account truly a test tool for live account?

[SquallLeonhart]

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

I resemble it to play money poker versus real money poker. In play money, like on those facebook type of games where the chips are not real, you end up with basically nothing and you can spend years and getting richer and think that you are great. Then one day, go try the pokerstars type of real money ones and you are going to realize that you lose money more often than you win, and you end up with a loss after every session.

The main reason is that when it's play money, it is not about just you, but about how you react to things, since it is not real, you end up being more courage and you can lose, and if you do lose, you can restart, whereas in real life you do not have that option which causes all the difference in the world.

[WaySummit]

When trading on a demo account, one can trade comfortably without stress, but when it comes to real money, the fear of losing takes precedence over everything, and we are unable to trade healthily.

[shawonngp]

I demo traded for about 1 month before trading with real money, as preparation for live trading, since experienced traders advise new traders to demo trade. But when I started live trading and lost several trades, I think there is a big difference between live trading and demo trading. In demo trading, you don't have any emotions; it's not serious trading, and there is no risk. When you go to start trading with real money, you will feel a lot of mental stress. Because it is very risky.

[Royal Cap]

I think the difference between demo and live isn't about money it's about feelings. In demo we are very confident, we set stop losses correctly and we follow the plan. Because deep down, we know that we are not afraid of losing anything. But, when we enter the trade with our own hard earned money, the chart suddenly starts to look different. Even a small red candle looks much larger. So I think in the new situation live trading should be seen as a place to recognize your emotions rather than making money. Because in the end the real game is to control your fear and greed before you beat the market.

[masulum]

I think the difference between demo and live isn't about money it's about feelings. In demo we are very confident, we set stop losses correctly and we follow the plan. Because deep down, we know that we are not afraid of losing anything. But, when we enter the trade with our own hard earned money, the chart suddenly starts to look different. Even a small red candle looks much larger. So I think in the new situation live trading should be seen as a place to recognize your emotions rather than making money. Because in the end the real game is to control your fear and greed before you beat the market.

Yep, that the point, when using demo account, people not fear anything, they are only following his feeling to entry without feeling about losing money. They know if the demo money losses, it will available to use again. So, no matter the market moving, bear or bull they will not fear anything. They can hold or close the position at anytime, even in loss position they wouldn't feel anything. But, if they are started to used real money, seeing his money drop 10%, they will have more wild feeling, feeling about losing more money if they holding it. The feeling of FOMO when coins going up after cutting losses, and any other situation that making them not comfortable to trade anymore just like when they are using demo account.

[Mpamaegbu]

When trading on a demo account, one can trade comfortably without stress, but when it comes to real money, the fear of losing takes precedence over everything, and we are unable to trade healthily.

That's true and it has all to do with our inability to checkmate our emotions when the real thing is onboard and capital involved. Nonetheless, demo trading won't stop those who are willing to master the craft of trading from doing so. All they've to do is trade it with the consciousness of it being real capital. In my first sequence of demo trading, I wasn't bothered a bit with what the outcome was or would be. As such, I never made any headway. It was when I started trading subsequent demo accounts with the meticulousness of someone trading real account that I began to observe rules and trading plans. Everyone trading demo should start doing that.

[Finebone]

When trading on a demo account, one can trade comfortably without stress, but when it comes to real money, the fear of losing takes precedence over everything, and we are unable to trade healthily.

That's true and it has all to do with our inability to checkmate our emotions when the real thing is onboard and capital involved. Nonetheless, demo trading won't stop those who are willing to master the craft of trading from doing so. All they've to do is trade it with the consciousness of it being real capital. In my first sequence of demo trading, I wasn't bothered a bit with what the outcome was or would be. As such, I never made any headway. It was when I started trading subsequent demo accounts with the meticulousness of someone trading real account that I began to observe rules and trading plans. Everyone trading demo should start doing that.

In my own perspective, demo trading is not really helpful in improving the skills of a trader because emotions is one thing that is unavoidable in the market, so since your emotions like fear and greed is not involved in demo trading, your experience in demo and live trading will be two different things all together, that's why we mostly sees newbies traders making a lot of money in demo accounts, but keeps on recording loss after loss on live trading, so trading with a very small amount of money you can afford to lose like one dollar or two, is a lot better than trading on demo account that emotions is not involved.

[bakasabo]

Learning to become experienced trader by using demo account as a start is like learning how to swim by watching video on a YouTube. If you dont risk with own real money, you dont risk with anything. A trade without a risk will give 0 experience. You can only learn which button do what and their location from demo account. All that can be learned within first minutes on exchange, as nobody creates exchange with complicated interface.

[Arenga pinnata]

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

Actually, this is more about the psychological differences between trading on a demo account and a real account. I think everyone will realize this. On a demo account, we can analyze more calmly without feeling burdened or overly fearful, or even without feeling too greedy or hasty. Meanwhile, in a real account, there are sometimes factors that influence our thinking, causing our analysis to sometimes be less accurate when our minds are not calm.

This also happens when we use small and large amounts of capital, and we will notice the difference, which usually affects our psychology.

[nara1892]

Obviously I have and I'm sure almost all traders experience it at the beginning of their trading career, the first thing I felt was strange why the results were different even though on a demo account my predictions were often right on target and over time and also after I looked for references from various sources I finally found the right answer that the cause was mental differences when we opened a trading session.

When you trade on a demo account then there is no fear of being wrong you experience because you know that even if your prediction is wrong you don't lose anything but in a real account it's different, when your prediction is wrong then obviously you lose money and that feeling is what makes traders hesitate to open a position even though it is the right moment according to their analysis and in the end most of them are late in opening a trade until finally the prediction misses.

[savetheFORUM]

When trading on a demo account, one can trade comfortably without stress, but when it comes to real money, the fear of losing takes precedence over everything, and we are unable to trade healthily.

That is if we take it literally but if we will only treat it like a real trade, then we can worry but that is only for a while and it is a good thing because this builds discipline, making us to be a good trader later on. If we are now confident on demo trading with that said style, that must be the time for us to move on to a real trade and trade healthily.

A fear of loss is only normal and I believe that even the professional ones also experience this. This because we work hard for our money but it is also a good thing because this will taught us to do things in a careful manner. We still can avoid losing and that is if we don't trade at all, but as the saying says 'no risk, no gain'.

[tvplus006]

...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...

As a rule, when trading on a demo account, the risks are overestimated and risk management is ignored, as this does not lead to the loss of real money. Accordingly, after he switches from a demo account to a real one, he continues to make the same mistakes, but only in this case it leads to the loss of the deposit.

[Localhostspeed]

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

It was difficult to have a demo trading that mimic the way the crypto market used to move but Bybit and some other exchange now supports most of the coins in their real trading spot zone where traders can learn how to trade. I think this can help any trader who inspire to put what they learn from YouTube into some actions because trading without actions is a waste of knowledge, you will not get to use what you have learn and it's dangerous to do that on live account.

However, I don't think it is enough to get you prepared for what's outside their. If you don't use your money to trade, you wouldn't know the value of trade and this is why it's advisable for traders to always used the amount they are going to use on live trading on their demo account. That will help you prepare for trading better than using amount you may not control when you later get back to your main account.

[moneystery]

This is because trading on a demo account doesn't involve the risk of losing money. You focus solely on your strategy and ignore other factors that could distract you, such as fear or panic.
On a live account, however, you're already using real money, so the pressure and expectations start to increase. At this point, most novice traders, with limited experience and poorly controlled emotions, often lose control and panic when the market moves against their expectations. This is why many traders who are successful on demo accounts fail on live accounts, not only because they lack experience but also because their emotions aren't well-controlled.

[shinratensei_]

Learning to become experienced trader by using demo account as a start is like learning how to swim by watching video on a YouTube. If you dont risk with own real money, you dont risk with anything. A trade without a risk will give 0 experience. You can only learn which button do what and their location from demo account. All that can be learned within first minutes on exchange, as nobody creates exchange with complicated interface.

Although I agree that the feeling is just different trading with demo account compared to real account, it's not as different as learning how to swim by watching youtube video compared to learning to swim directly. That analogy isn't exactly right
Demo account feels really familiar with the real trading account except you don't really get the feel of risking money but it's still helpful but you get the same feeling as using demo account when you trade with small money because you're not risking anything beyond your risk tolerance.

[justdimin]

...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...

As a rule, when trading on a demo account, the risks are overestimated and risk management is ignored, as this does not lead to the loss of real money. Accordingly, after he switches from a demo account to a real one, he continues to make the same mistakes, but only in this case it leads to the loss of the deposit.

This means someone can go all in at a demo account without a worry, and if they do make money, they will think that they are doing a good job and they are a good trader and then they will do the same thing with their real money account and lose and understand that putting all of it all at once is not a smart move and you could lose as much as you can win and if you lose then all of it will be gone.

Demo account doesn't carry the same risks as a real money one, so the best you can do is to test it for strategies that you have learned, that way you can compare the strategy and not your skills. Even timing matters, so you have to do it at the same time, what works today may not work tomorrow, so comparing strategies at the same time is the way to go.

[bakasabo]

Learning to become experienced trader by using demo account as a start is like learning how to swim by watching video on a YouTube. If you dont risk with own real money, you dont risk with anything. A trade without a risk will give 0 experience. You can only learn which button do what and their location from demo account. All that can be learned within first minutes on exchange, as nobody creates exchange with complicated interface.

Although I agree that the feeling is just different trading with demo account compared to real account, it's not as different as learning how to swim by watching youtube video compared to learning to swim directly. That analogy isn't exactly right
Demo account feels really familiar with the real trading account except you don't really get the feel of risking money but it's still helpful but you get the same feeling as using demo account when you trade with small money because you're not risking anything beyond your risk tolerance.

I have never seen anyone using demo account for more than half an hour. People use demo accounts to play with trading, click on buttons to find out what they do and etc. After a first profit from first trades, person closes demo account and creates a real one. What can a person learn from few trades and minutes of exchange usage? Nothing. Nobody use demo account for long period. I think that is phycology. They see they succeed and they rush to play for real to start earning.

[barbara44]

Demo account is a test tool for live account as it has the same charts and trading strategies. The reason why people make profits in demo accounts is because their emotions are not involved with these demo accounts. They would simply open a trade, close the application and come back after a day or two. Some people even forget that they have an open trade in these demo accounts. This makes people leave their emotions way far from their demo trading and that is when they start seeing profits.

But once they move real money, they will keep the charts open for the majority of time, will keep speculating the trades and will take impulsive decisions. This is what makes them end up in loss immediately when they move their trades from demo accounts to real accounts. Not only in crypto trading, but this is the same scenario in almost every other aspect of trading which includes forex, options and even binary.

[Fredomago]

Learning to become experienced trader by using demo account as a start is like learning how to swim by watching video on a YouTube. If you dont risk with own real money, you dont risk with anything. A trade without a risk will give 0 experience. You can only learn which button do what and their location from demo account. All that can be learned within first minutes on exchange, as nobody creates exchange with complicated interface.

Although I agree that the feeling is just different trading with demo account compared to real account, it's not as different as learning how to swim by watching youtube video compared to learning to swim directly. That analogy isn't exactly right
Demo account feels really familiar with the real trading account except you don't really get the feel of risking money but it's still helpful but you get the same feeling as using demo account when you trade with small money because you're not risking anything beyond your risk tolerance.

It is similar to how real trading happened though the emotional side is not being affected since you arenot using your hard earned money, unlike with real account which you are using your actual deposit, there are so many factors that influences your decision making, with demo accounts you can practice patterns and strategy that you can use when you already dealing with actual trades, with good practice and focus you may established strategy that may help you to excel inside this market and manifest success along the way.

[Stable090]

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 ?

Whenever am trading in demo accounts, I always notice that I do win more than the way I lose, and am going to start thinking that have already gotten things right, but immediately I switch to the real account, that’s why you going to see me losing unnecessarily, it has happened to me multiple times before, but if I will be honest I don’t really know the cause because have been asking myself that question over some time, and I haven’t figured out the reason why I win when using demo account, and I will be losing when I switch to main account.