Forex Trading on DEMO Account vs REAL Account

Forex Trading on DEMO Account vs REAL Account

Demo Trading VS Real Trading

Should you learn to trade on a demo account or should you learn to trade on a real account, with real money in a live account in Forex?

Now, this is one of the big questions and areas of debate that I often see in the trading fraternity and quite frankly there are Three valid sides to the argument Demo Trading VS Real Trading. but before I get into that and I've caused give my opinion for what it's worth let's talk about what a demo account.
   DEMO Account vs REAL Account
Demo Trading VS Real Trading
Demo Trading VS Real Trading
  Demo Trading VS Real Trading that replicates the real environment with real-life prices all the available tools and indicators that the real money account has but only it isn't it's not real money it's play money you can't be draw a dime if you have a winning streak but equally you can't lose your cash either now many brokers offer a demo account as a free incentive to entice you into use them they'll offer you the chance to have $10K, $50k, $100K dollars to play with they'll also maybe offer you insane amounts of leverage to basically get the excitement juices go you can sit there make 10K of dollars in just a few minutes and no worries if you lose you can just top it up and start all over again God how great that would be if it was as simple as that and here lies the problem it's not real life be wonderful we just top up another $50K and off we go again after blowout but it's not going to happen and as soon as you start trading with real money you'll realize that it is indeed very very different it's often said and I believe it to be very true that one of the biggest challenges when it comes to training is the psychology aspect now some say it's as high as 80 percent of the pipe I don't know what percentage it is but I know it's indeed very high and when you're trading me a Demo Trading VS Real Trading you don't experience the same emotions it's as simple as that they are very very different.

3 Common Psychological Mistakes in TRADING

  1. Fear
  2. Greed 
  3. Revgear 

The three biggest emotions that traders experience when they're trading are Fear, Greed, and Revngar. 

Fear being the fear of not wanting to lose money in the first place so you're not able to pull the trigger on your traits even if it's a perfect setup or fear of missing out if the market starts to move off in your predicted direction and you're not on the train to enjoy the rights you jump in just as the markets about to turn back the fear of saying you're winning trade start to retrace and you see your juicy profits dwindle away so you end up making a profit before your profit targets the fear of taking a loss to that your trades run even further causing ever-increasing destruction to the trading account.

Greed the greed when you're in a trade and you want more from it so you let the market keep going hoping so this one is going to be knocked out of the park and it's going to pay all your bills but you end up getting wiped out the greed which can force you to revenge trade meaning that when you have taken a losing trade you fight the market back you want your money back you don't want to be a loser so you fight back with revenge trade now all these are common emotions of trading that are prevalent when we have real money on the line and they're not prevalent when you're trading a demo environment that's why trading is so so very very different it's short.

Revenge revenge trading these are the types of traders who can blow up their entire trading account and lose everything in just a day or week after taking a trading loss revenge traders will throw everything they know about proper position sizing out the window and will trade like a madman just to make back that loss now this may work once or twice and you'll come out unscathed but if you keep this up you'll get crushed bad and it's going to hurt the market doesn't care about you or your money and you're going to be the one 100 percent responsible for it if your revenge trading causes you to lose everything in your trading account so please just be honest with yourself and if this is something you struggle with at all just get a grip on it before it really ends up hurting you and the solution for this one is actually fairly simple here's our advice to anyone who struggles with this first if you're having this problem where losses are upsetting you enough to get you to this point of seeking revenge on the market you're likely trading way too big of positions in the first place so knock that position size down trade smaller size this should allow you to not get so upset about losses and you'll be able to start making decisions based off of logic rather than emotion with any trading strategy you're going to have losing trades every now and then but the key is making sure your winners outweigh your losers as Drake once said you win some you lose some as long as the outcome is income and if your position sizing is out of check and your trading out of anger or revenge then the outcome will definitely not be income now if you're still having issues with this and you know that your position sizing is in check then maybe it's your mindset or your expectations of trading that is the problem you need to make sure you're committing and focusing on the long term try to look at the bigger picture and think about how the long term success is much more important than trying to make back that loss right now this very second revenge trading can also be a result of expecting yourself to make money every single day and anytime you are negative on the day you will do everything in your power to turn that around and be up money on the day well this is just not a realistic expectation you should have you should be focused on being positive on the year quarter month or at the very least week but being positive every single day is just not reasonable as markets fluctuate each day and you can't control that 

Trading on DEMO Account vs REAL Account
 when you're trading a demo account you're undoubtedly going to trade differently but that's ok as long as you know and accept that I often hear the case put forward that you should learn to trade on a real live account but just use small amounts of money as it will matter and it will be more like the real world but I think this is a flawed concept if you're trading with small amounts of money that's not important to you it's gonna have the same effect as trading a demo account if you're not worried about blowing $100 or $500 account on trades it won't be realistic the emotions won't be the same chances are you just end up blowing multiple 100 $500 or smaller counts in the meantime until you realize that trading is not for you as you've just blowing accounts.