Topic: Virtual trading before actual one - pros and cons (Read 797 times)

I see a lot of advice where people suggest each other to practice on websites where they can trade with virtual money. To be fair, I am in this list too among them but at the same time no one warns such people that it was it's pros and cons, more likely cons are outsiders while giving advices.

Pros: You trade with virtual money where your actions can't raise/damage your real budget, it looks like you spend money like nothing. This gives us possibility to test our skills and abilities in trading and help us further why we make mistakes and what we need to fix while considering the fact that the reason why I profit/lose is because you lose/profit.

Yeah, it sounds good but sometimes when we move on real life trading, things go wrong. We are always warned to leave our emotions outside while we are trading that includes: Not to panic sell, hold when there are harsh moments, etc. But we forget to mention another main emotion that we face in this situation: We trade with our money where we are responsible to results and these results may have huge impact on our life. Inside, in our subconscious, we worry about the results because we trade with our, real money.

To my mind that's one of the main reason why people usually start well with virtual trading and end up badly in real life trading and somehow this is one of the most skipped problem in overall.

When you spend that virtual money like it means absolutely nothing and you try to make profit that way, you are not in the mindset of a true trader and that is why you will lose. Not on the virtual one but in the real one because you never really learned.

People should not do virtual trading, it does more harm than help, people can't learn trading properly without actually putting up real money that they could lose, if they put up real money that means you could actually end up with fear of losing that money and that will make you a much better trader. Do not forget , 80% of investment is "not losing value" and not "making money" so with virtual trading you are not feeling the most important part of the crypto trading world, the part where people try to not lose.

If you want real experience after experiencing virtual trading, use small funds at first. So you can feel what it is like to use your own money. Good traders don't start with big money, they start small until they learn the ins and outs in trading. And since crypto trading is a very volatile market, one should keep in his mind that use funds that you can afford to lose.

Actually, you can't feel the loss if you are just in the trial mode, it very unlikely when you are using real money that anytime will be lost at your hands. The market is so tricky, volatility keeps so wild, and that it brought risk in trading especially when you are just a newbie. But that is how we adopt the market changes, we need to adjust and find a way that it could help us to make our trades and trading experience better and profitable. Yeah, it cost a lot at first but later on, we finally get the strategies that we applied to have a better result.

Even though I am not a newbie in the trading world, I have used virtual trading several times for practice. Because in my opinion
virtual trading is good enough to try various trading strategies, and also can train our trading skills to increase. Because practice
in virtual trading we are not afraid of losing money, because it doesn't use real money. So with virtual trading we are free to experiment
in finding the best trading strategy.

I have actually tried trading with a demo account before and have clear trading strategies listed. After 2 months, my strategy is quite good, I have made 200% more return than my principal. But when I trade with a real account I often suffer from a lot of psychology when my position is at a loss. despite practicing a lot of psychological exercises on demo accounts, but when in practice it is still the same.
So I suggest we should use with real accounts and start trading. It is the fastest approach to practical knowledge and gives us the most lessons. Remember, only use accounts from 50 - 100 $, do not trade too much at first.

Why used a word virtual trading, just used its demo account.

The reason because you doesn't care about the money and there is no psychology, emotion and other things by using demo account money. Successful or not you will not really care at all since that's just a demo account money. Ratter than using a demo account, better just make some TA on Trading View and always safe your TA work. Make some list and data for each month, how manny successfully analysis you make.

I think practice and observation your analysis with around 3-6 month already enough to you to start the trade with real money, try it first the smallest fund.

In addition to your comment demoing also help a trader to perfect a trading strategy this would also enable the trader to test the water very well before going live, I have read touching stories of traders who went live and got rekt its a known fact that 95% of forex traders lost their funds or portfoliothis are mostly newbies who had not practice well before going live, I also agreed to the fact that testing with a small amount is also advisable this will enable the trader to test emotion and fear associated to trading as a newbie trader.

I think its not to learn anything about profit making,its just for the purpose of identifying how these things works,once they know about trading then they can make or learn about profit making strategies which needs real money so they can feel the real pressure while making trading decisions.