Forget to point out that there's the same chart in trading, so I stand corrected about saying that trading's demo and gambling's demo mode are the same. The other relies on algorithm and the other is with the charts. I've passed on that information and so hereby, I accept that correction. Both are good for practicing whether we feel that we're good enough to test the real scenario and no longer with play money. Although I agree about the pressure is real when real money is involved for both activities.
Unlike gambling, I never tried demo mode in trading. My friend who taught me trading immediately explained to me that it was almost pointless. He also taught me to trade with real money right away, but the condition was that I had to trade with small amounts of money while learning, and I had to be prepared to lose it. Demo mode in gambling is most likely designed to help you get a feel for the interface, the rules, the minimum bets, and the gameplay.
I guess that the point of your friend is right, to trade right away with real money and even it's just a small amount you'd feel the pressure and the reality of it. Compared to the demo, you're going easy on it and won't be serious with the wins or loss you'll make there. In both of it that has demo mode, it plays the part of the most important way to make the user be more known to the actual activity but both as reality isn't taken seriously by anyone who tries it. There's lack of satisfaction in both of it.