Topic: Demo Account, Should Not Be Related To A Real Account - page 4. (Read 959 times)
This is just like the saying that talk is cheap. In demo accounts, we can make it grow using technical and fundamental analysis. What is missing though is the psychological effects which is part of trading. That is why I am not really a fan of demo accounts. I tested some of my strategies before by simply basing them on past candles and trends. And I would rather trade small in a real account like $100 rather than do demo trades. We can always start small in order to avoid our emotions affecting our trade analysis.
Demo experience can not be compared to real account experience. In demo there is no tension, no greed, sometimes the trader might open a trade and hodl for days because there is no limit to the amount of funds received from demo accounts.
With real account, the trader funds what the can afford and boom tension sets in. The greed to move $100 to $1000 in three days drive the trader. If it turns out positive, then $10k becomes the next challenge. Real money comes with this unsatisfaction, the urge to make more will always be there. I see demo account has a tool to familiarize with the trading interface before going life and not a determinant of what happens in live accounts.
With real account, the trader funds what the can afford and boom tension sets in. The greed to move $100 to $1000 in three days drive the trader. If it turns out positive, then $10k becomes the next challenge. Real money comes with this unsatisfaction, the urge to make more will always be there. I see demo account has a tool to familiarize with the trading interface before going life and not a determinant of what happens in live accounts.
demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.
Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.
trades then this is where you would definitely or probably do most of the time which it is really that different when you do make use of real money on which on the time that you had lost a trade,
then you would be minding on where you did get it wrong and try to analyze it.Well, this would really be depending on a certain individual because not everyone will really be thinking the same.
Getting to that opinion, we do have differences and like you mentioned actual trade with real money is far different from the demo account, if you lose in the demo you can easily recreate and re-try a new strategy that you think will work for you, while with real account using your hard earned money, the emotions mostly cover and dominates your decision making.
It's tough to see that you are losing by mistakenly judge the possible market movement, you can re-create your strategy but there's already money involve that you need to accept that you lose.
demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.
Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.
Why do you think people dont learn in real accounts also? If you meant that they dont care about money, then yes, such person dont learn from losses. I see a loss in trading as putting a hand into open fire. One time is enough to find out that it hurts. There are cases that sometimes a person must burn a bit/make a sale with a loss. But that is a necessity. A person must be very stupid if he keeps on loosing aka putting hand in a fire, doing similar actions. Demo accounts - it is like putting a hand in fire, but with a thick protective glove.
Now my question is
~why can't we relate demo accounts to real accounts
~why do you think people still start making losses on real accounts after long time trading demo successfully
Demo account is relational to real or live trading account alright. In both cases, your trading the actual market, under going same market condition, building strategies that could function in both demo and live market but, the difference always comes in in the sense that, one is your actual/real money and the other is not.~why can't we relate demo accounts to real accounts
~why do you think people still start making losses on real accounts after long time trading demo successfully
Hence, there is a different emotion to this. Whatever the outcome might be on a demo account, you can easily get to accept it. What's the worst that could happen, you exhaust your funds, create a new account and get funds, then your back again.
On a real account, losing your funds means you get to fund it again out of your pocket and that hurts. You get emotional on every trade and more than hopes to get it right and that's enough to make errors. In either case, is always nice to start trading on a demo account.
~why can't we relate demo accounts to real accounts
When you use a demo account, you don't do real trading. It is only a simulation trading, you won't earn money as well. So, why it is needed to relate to real account? Using a demo account isn't a must, anyone can trade without using it first. We should understand that using demo account is an optional, it is not a crucial part of the real account.~why do you think people still start making losses on real accounts after long time trading demo successfully
If you spend a long time on demo trading, it only wastes your time. It never guarantees a success for you trading, it only helps you to understand how to trade is. In real trading, there are many factors to influence the result of our trading that we can't see it in demo trading. As @Ratimov said, "there is no market makers, no exchange bots, and no whales". Without these factors in demo trading, surely we can easily trade successfully. While in the real account, to succeed in trading, we must deal with those factors.Check: Trading demo account
demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.
Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.
trades then this is where you would definitely or probably do most of the time which it is really that different when you do make use of real money on which on the time that you had lost a trade,
then you would be minding on where you did get it wrong and try to analyze it.Well, this would really be depending on a certain individual because not everyone will really be thinking the same.
demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.
Even in real account, if you simply move on, you will never get chances to learn anything. Most traders accept both loss and mistake to move on which means they may commit same mistake again but as per risk management we need to accept losses at stop-loss level (not everywhere or before stop-loss) and need need to go back-tracking to analyse on what went wrong to make that trade a losing one.In my experience, such kind of back-tracking is possible even with demo account. If you take time to go through on your own performance then you can learn and become a pro trader and if you ignore then you cannot achieve anything in trading. Demo accounts are recommended to learn because it got no risk but its effectiveness is purely subjective of how serious you treat it.
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~why do you think people still start making losses on real accounts after long time trading demo successfully
Just to know that losses are real when trading. ~why do you think people still start making losses on real accounts after long time trading demo successfully
There are so many factors that could affect our trade when using real money;
- emotions
- mindset
- Technical analysis
- strategies
Many people think about why but never see that they are changing when they use their money unlike when they are just using free money.
When using practice or demo account you are always willing to push for what you think is good for your position, win or lose you are not affected as you can always try back and see if your strategy will work, but when using real money to stake and risk, the selections that you provide are the most common reasons why traders losses their money.
It's difficult to make your decision when the market is not favoring your position, when the directions is not moving to how you project your analysis, most of the time your emotions will overcome your plan strategy and change everything, fearing that you will going to lose and avoiding further damages with your initial capital.
I am against demo accounts. To me, it's like cheating in a video game, or like saving/loading before a difficult boss stage. I'm saying that you won't learn anything from demo accounts. I dont believe that a person has not yet learned the rules of "buy low, sell high" in his life until he got acquainted with the stock exchange, or does not know the difference between "more and less". Imo, demo accounts are created lull vigilance, to create a fake feeling of having knowledge, skill or supremacy. Most important, demo accounts does not make you learn from your mistakes. In demo accounts every single trade is correct, while reality is different.
Now my question is
~why can't we relate demo accounts to real accounts
~why do you think people still start making losses on real accounts after long time trading demo successfully
If the person is just following what they did with the demo account they can convert success into real account too but most of them not able to follow.
Its real money so they can't convince them to make bold moves like they did with demo account so its a battle between emotions and strategy but at the end emotions win on most cases.
~why do you think people still start making losses on real accounts after long time trading demo successfully
Because in a demo account traders will not have pressure to make a profit, and whatever the results traders will not face problems, it is very different when already using real money the pressure will be very enormous, which is why demo accounts are only useful for beginner traders to know the features about trading on the exchange, but success on a demo account is not a benchmark that traders are ready to use a real account and start with real money too.Especially on a demo account, usually the exchange will provide unlimited funds so that when you experience a loss, the funds are available again, while with a real account, the funds really depend on the ability of the trader, how much he has and how much he can afford to lose
When I first learned to trade in cryptomarket I learned to trade with DEMO account. But it will be very useful for new people who want to learn to trade. But I don't know if using it will give insight to all types of trades. But now I have approx. Good idea about the trade.
The best is to use little amount of money to trade, with that you will be able to access all the features that you want to learn. I remember when I started to trade, I can buy a coin with just $1, but I go as high as $10 to learn.Some exchanges like Binance require at least $10 for spot trading.
With future trading, I can use $2 to trade in a way I can use 5x leverage with it.
Those are small amount that can be used to learn how to trade.
And this is because even if you were to lose that small amount of money you will not think much of it since the losses are so small, so at some point regardless of how ready we may believe we are we will need to begin to trade with amounts that are way higher and in which a single loss can be painful to the point you could abandon your strategy to try to recover the money you just lost.
...
~why do you think people still start making losses on real accounts after long time trading demo successfully
Just to know that losses are real when trading. ~why do you think people still start making losses on real accounts after long time trading demo successfully
There are so many factors that could affect our trade when using real money;
- emotions
- mindset
- Technical analysis
- strategies
Many people think about why but never see that they are changing when they use their money unlike when they are just using free money.
A long time ago, I came across a long article where one of the investment bank's professional traders explained in detail that all these demo accounts that the exchange provides you are designed to give you a false sense of confidence and control in trading. To make you think that you can easily handle the market and are willing to risk real money ASAP.
He also mentioned that books on technical analysis have almost the same goal. Their primary task is not to teach you how to earn, but to inspire the idea that everything on the market is subject to graphic figures and technical analysis is the law.
Very interesting to knowing this very information, it will be nice for one to read this article in order to gather more knowledge about this. I'm someone that do believe so much in Technical Analysis more as to Fundamentals, and until this period of economic collapse when I now realized that News events also have powerful impact in the market. Demo trading is useless for creating your own trading discipline and strategy. There is no discipline, because emotions do not turn on when trading with candy wrappers, but when trading with real money, they turn on. In demo trading, there are no market participants that are in the real sector (bots, market makers, etc.). Without them, the most realistic trading strategy cannot be built.
In my topic, I mention that demo trading is only needed to understand the principles of trading itself and the principles of the trading platform, in all other cases a demo account is absolutely useless.
You made total sense, Literally I suffered this during my early stage of trading , my strategy was working perfectly in Demo trading account but when it comes to trading the live account, I began to see a different results and that put me into total confusion until I got to understand that the Demo account is just to give you the sense of what you can face in the real market.
But I do think that the presence of the market makers/manipulators that do trade with those super computers that sees wherever there are stops loses (liquidity) is what that really makes live account a bit different from the Demo account.
When I first learned to trade in cryptomarket I learned to trade with DEMO account. But it will be very useful for new people who want to learn to trade. But I don't know if using it will give insight to all types of trades. But now I have approx. Good idea about the trade.
The best is to use little amount of money to trade, with that you will be able to access all the features that you want to learn. I remember when I started to trade, I can buy a coin with just $1, but I go as high as $10 to learn.Some exchanges like Binance require at least $10 for spot trading.
With future trading, I can use $2 to trade in a way I can use 5x leverage with it.
Those are small amount that can be used to learn how to trade.
~why do you think people still start making losses on real accounts after long time trading demo successfully
A reason can be that they underestimate the market and become dangerously too overconfident that having mastered demo trading, they can no longer make losses. The market will always to prove to these kind of persons that demo trading and trading on a live account are related but also different. Demo trading introduces you to what to expect from the market. 
Most times, people trade demo accounts and do that very well after a long while of consistency trading virtual currency with consciousness of not losing anything and the ability to refund upto $10,000 if trading capital is exhausted and when they feel or think they're good with trading on a virtual account, might take the bold step of funding a real account with now a changed psychology and totally different mindset and emotions, yet still make great losses when trading real accounts
Now my question is
~why can't we relate demo accounts to real accounts
~why do you think people still start making losses on real accounts after long time trading demo successfully
Yeah, I am able to get your points. Still, I like to recall and realize these "sayings" before making any conclusion.Now my question is
~why can't we relate demo accounts to real accounts
~why do you think people still start making losses on real accounts after long time trading demo successfully
'Something is better than nothing'.
'Practice makes men perfect'.
'Losses are just parts of everyone's trading life'.
'Emotion control is only possible by practice and not by learning from books'.
'Money management is the art of mind and not part of heart'.
Simply, you need to be careful while trading in demo then same practice will be possible in real trading. Accept losses and try to avoid them in next trade even in demo trading which means you should feel like those fake money is also limited hence you need to be careful while risking them.
If you approach demo account as a play ground then you will find hard times in live trading. Use demo as real then real trading will remain profitable.
A demo account is the first step for us to know and learn what we can use for trading, such as strategies, indicators and so on. Our psychology is not disturbed when using a demo account because we don't spend any money on trading, in contrast to a real account that uses our money to start entry. That's why the results will be different when we trade with a demo account and a real account.
I speak from my own experience, my heart beats faster when I use a real account, which I don't feel when I use a demo account.
I speak from my own experience, my heart beats faster when I use a real account, which I don't feel when I use a demo account.
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