- As a construction of your money management and risk management. I often read posts on this forum with the following content: .... on a demo account, you can trade without fear, you still won't lose anything, because you can start over and train every time. But what will you train there? The ability to start over? Undoubtedly, exchanges love such traders. But that won't work for you. It is precisely that on a demo account with a similar approach, you will not develop anything, nor any risk or money management you will master there.
I used to compare this with console games.
With offline games there is a "save point". That means when you die you can just load that saved game and bring back all the items that you once lost from dying.
With online games, that's not possible because there's a server that saves every second of your move. Only the owner of that server can manipulate it and may roll back into what time you still have the items.
This goes with trading too. With demo account you are willing to sacrifice everything because you know there's a "save point".
The problem is, what if you got used to that perspective and habitually done the same thing over and over. From losing more, you also lose the "will" to continue trading and that sucks.
I learned the hard way by trading directly with little amount. Thankfully, I have a little background with commodities trading.
