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how do demo accounts differ from real live trading?

  • #101
  • Aug 9, 2018 2:43am Aug 9, 2018 2:43am
Quoting vwap
I find that major psychological difference when on demo and when real trading, heart beat like crazy when live account etc.
Yes the major difference between the demo and live account is psychological. Very few traders will be there who treat their demo account just like their live one. That is the reason results on demo and live account differs.
  • #102
  • Aug 17, 2018 7:44am Aug 17, 2018 7:44am
On demo you are trading with virtual money whether you are losing or making profits it doesn't matter much. But when it comes to the live account where your real money is on stake, everything matters.
  • #103
  • Aug 17, 2018 9:29am Aug 17, 2018 9:29am
Quoting Natalie45
On demo you are trading with virtual money whether you are losing or making profits it doesn't matter much. But when it comes to the live account where your real money is on stake, everything matters.
That's true. But their stats are also different - execution speeds, requoting, sometimes even spreads are different.
  • #104
  • Aug 20, 2018 4:26am Aug 20, 2018 4:26am
demo account is good only for couple of weeks. for the rest of the learning period real account with very small deposit is better.
  • #105
  • Aug 20, 2018 5:37am Aug 20, 2018 5:37am
Quoting dtrader88
demo account is good only for couple of weeks. for the rest of the learning period real account with very small deposit is better.
Well, may I know your current status? Demo, small amount or real trading?
  • #106
  • Aug 20, 2018 3:34pm Aug 20, 2018 3:34pm
Ideally there is not much of a difference between the two. Demo accounts are modeled after live accounts with the exact same trading conditions. The only difference is that of real funds and fake money. The purpose of a demo account is to familiarize you with how trading works without risking any real capital. However sometimes execution related problems may arise when switching from demo to live, even slippage may also be experienced. Therefore choose a reliable and sincere broker that can give you same conditions in demo as in live acount.
  • #107
  • Aug 20, 2018 8:36pm Aug 20, 2018 8:36pm
You have no emotional attachment to paper money
  • #108
  • Aug 22, 2018 9:22am Aug 22, 2018 9:22am
I don't know about that. I mean, I am reasonably sure I like paper money as much as I like digital money.
  • #109
  • Sep 20, 2018 1:35am Sep 20, 2018 1:35am
There are two main differences between demo and live trading. The first one is obvious - you don't trade on real money in demo accounts. The second one stems from the first difference and is more psychological in nature - your emotions because of real money in live trading. A lot of people who find demo trading ineffective is because they forget that second difference.
  • #110
  • Sep 25, 2018 12:23am Sep 25, 2018 12:23am
Quoting Marika
There are two main differences between demo and live trading. The first one is obvious - you don't trade on real money in demo accounts. The second one stems from the first difference and is more psychological in nature - your emotions because of real money in live trading. A lot of people who find demo trading ineffective is because they forget that second difference.
Well explained! emotions makes a differnce while trading on demo and live account.
  • #111
  • Sep 29, 2018 9:42am Sep 29, 2018 9:42am
Quoting Marika
There are two main differences between demo and live trading. The first one is obvious - you don't trade on real money in demo accounts. The second one stems from the first difference and is more psychological in nature - your emotions because of real money in live trading. A lot of people who find demo trading ineffective is because they forget that second difference.
This is why, I would like to suggest micro account before the live trading (with a decent amount).
  • #112
  • Sep 29, 2018 9:47am Sep 29, 2018 9:47am
Quoting DarrenLehma
{quote} This is why, I would like to suggest micro account before the live trading (with a decent amount).
That is my opinion too, begin with a demo account, move onto a micro account and only then invest a larger sum, don't start off with the big investment.
  • #113
  • Oct 5, 2018 5:06am Oct 5, 2018 5:06am
Quoting mlawson71
{quote} That is my opinion too, begin with a demo account, move onto a micro account and only then invest a larger sum, don't start off with the big investment.
Yes mate, it helps a lot to learn emotions & greed, the live trading is little bit different than the demo trading!
  • #114
  • Oct 5, 2018 8:40am Oct 5, 2018 8:40am
Quoting DarrenLehma
{quote} Yes mate, it helps a lot to learn emotions & greed, the live trading is little bit different than the demo trading!
That's an understatement, if you ask me. It's very different - starting from the server speeds and execution to people's reactions to trading.
  • #115
  • Oct 6, 2018 4:54pm Oct 6, 2018 4:54pm
Quoting mlawson71
{quote} That's an understatement, if you ask me. It's very different - starting from the server speeds and execution to people's reactions to trading.
Well, what was your early days experience on live trading (on emotions & greed)? Was the same as like your demo? Or did you feel something different?
  • #116
  • Oct 8, 2018 9:17am Oct 8, 2018 9:17am
Quoting DarrenLehma
{quote} Well, what was your early days experience on live trading (on emotions & greed)? Was the same as like your demo? Or did you feel something different?
The best and only way I can describe my early days of live trading is "a hot mess". I made loads of mistakes while trading, I picked a scammy broker, I lost my account more than once, I despaired, I raged, I occasionally cried, I am so glad I am not a newbie anymore.

What about you?
  • #117
  • Oct 8, 2018 8:46pm Oct 8, 2018 8:46pm
Every trader is susceptible to some trade losses. Every trader has a bad day but does not let that day cost you more than you make in an average profitable day.
  • #118
  • Oct 9, 2018 9:44am Oct 9, 2018 9:44am
Quoting Butterscotch
Every trader is susceptible to some trade losses. Every trader has a bad day but does not let that day cost you more than you make in an average profitable day.
I don't know about every trader not letting it cost them more than they make in an average profitable day, some traders, unfortunately, lose their entire accounts. And not just once too.
  • #119
  • Oct 10, 2018 12:29am Oct 10, 2018 12:29am
Quoting mlawson71
{quote} That's true. But their stats are also different - execution speeds, requoting, sometimes even spreads are different.
Agree with you, sometimes stats of both accounts differs, is the execution speed
Agree with you, I have also felt this sometimes.
  • #120
  • Oct 10, 2018 3:58am Oct 10, 2018 3:58am
Yes I agree with all of the above, demo is not real money and when you go "Live" as its real money your emotions will become more attached to it. Lose a few and then human nature results in more risk being taken to win back the losses

There are solutions of course.
Get someone else to do it for you.
Automate it, so you don`t watch it, with controlled RM of course for each trade and overall system.
Give Up

I prefer number 1 or 2 as options for people, but number 1 you have to be stringently regulated , well in the UK anyway
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