Topic: Virtual trading before actual one - pros and cons - page 2. (Read 799 times)

If you start using bots on virtual trading first and learn how to use the bot, you could end up with actually learning how to use the bot and you could totally be a lot better when you go to real one.

I will add that we have to lose our deposit several times to understand trading. You can't learn how to trade on a demo account, because there is no risk of losing real money. Therefore, trading on a demo account is more like a casino, when you put the entire deposit in the hope of getting a big profit.

But we must lose first before we really appreciate the real trading,better use small amount to try trading and learn from
 our own mistakes and experiences.

If you are beginner in trading, than it is always better to start on demo account. This is just to see what to expect on real account. Real trading starts with real account, so if you are not sure about your skills, then start with low initial investment

The virtual account for trading is always a good option, this is where you test your ability as a trader and see how you will fare, trading is a serious thing because if not taken care you can easily loss money, the reason why virtual trading account is very important to learn with from the beginning unlike actual account where you can easily lose money for real because of limited knowledge.

We had a similar topic in gambling discussion section, it was about gambling with free money or demo versions, or gambling with the real money! My stand is pretty clear on that, it's always better to do it with real money! Demo version is good for one thing only, to learn about the rules if you are complete newbies, but as soon as you learn the rules try with real money, with amount you can afford to lose of course. Why it's better, simply because you learn how to do it under the pressure! You don't have pressure while you do it for free, you can risk a lot, you don't care much about your amount, but with real money you are under the light and you know you need to give your best or you will fail and lose money, and you don't wish that to happen!

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.

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.

Things can go wrong because of emotion, yes. The difference there is that when trading a life account, you consider that you are trading your life money and most times you seem to panic to go for an order that will give the profit but enter a losing trade. Lice account can be problematic because any mistake is loss of profit.

I have my doubts that even trading with a small amount of money is that beneficial because then we go back to square one to the problem of trading with a virtual trading account in which you are not going to care about your losses, it is obvious that trading with a small amount of money is better than trading with virtual money but if the amount of money is still small then even if you lose you're not going to be that affected by it.

It is undeniably best for a beginner to use virtual trading to gain experience and relevant skills that will be very useful later on. But it seems to me that even an experienced trader will be able to use demo versions of a cryptocurrency exchange in order to work out their options for trading strategies to study their effectiveness.

I have my doubts that even trading with a small amount of money is that beneficial because then we go back to square one to the problem of trading with a virtual trading account in which you are not going to care about your losses, it is obvious that trading with a small amount of money is better than trading with virtual money but if the amount of money is still small then even if you lose you're not going to be that affected by it.

It is only when you trade with enough capital that makes you feel nervous about losing it when you can truly experience what is trading for real and that means that one single mistake could be enough to destroy your account, then my opinion is that the most important skill to learn is how to manage your risk and limit your losses.

I would be against virtual/demo trading. I would just use them to get to know the features of the platform and get used to it. I would be relying on it to "learn how to trade".
Those are demo accounts and you know that. Hence, you even know that there isn't any risk of losing your money. So the trades you will be making won't matter to you.
But if you trade with real money/coins, trust me, you will be trading totally differently since this time "you will care about your coins". Again, you might build up some bad habits when trading in demo accounts.
I would rather start trading with small funds to gain real experience.