Why Demo Account Performance Is Often Better Than Real Account Performance?

[acunmeswew]

in the demo account is unthinkable loss will occur. that's the reason why his performance is better than the other

[budado]

First of all lets analysis. When you trade in demo account how much capital you have in your demo account? While when you trade in real account how much capital you have in real account? this alone can answer your question why your demo account has better result and its because in demo account you have big capital. Lets say you have 50,000 dollars in demo account and 50,000 dollars in real account do you think the result will still not be the same?

[riddick09]

Well, technically we have the option for any amount in demo because, it's just demo account. But obviously, we can have the same amount of capital for both if we want to, and try to have similarity of what we will use there in order to really check it's results when do the real trading. But because of the outside the trading platform factors which mostly in the trader already then, it will have the different results in real one.

[gaban]

Sometimes because of a source of capital that makes traders underestimate a demo account. Equity capital for demo trading is virtual, but if trading with a demo account without rules, it could be it will carry over when we do the real trading. Better still use a demo account as it should, because without a demo account, we can not learn without risk.

[pepy]

Sometimes because of a source of capital that makes traders underestimate a demo account. Equity capital for demo trading is virtual, but if trading with a demo account without rules, it could be it will carry over when we do the real trading. Better still use a demo account as it should, because without a demo account, we can not learn without risk.

Traders underestimated demo account because there isn't real money there, you won't get any bucks from trading there unless you joined Demo Contest. but in fact this account also important, and i think the only way to get rid risk in forex only by using demo account and then we will not have any risk.

[riddick09]

Or they are just selfish enough and overconfident to just skip or ignore demo trading. They are lazy to determine their weaknesses and mistakes. Thus, they will just only realize and will be back in demo trading once they have lost in their real trading and need to improve their trading. These accounts or trading type are a must. In demo we will need to test our strategy and earn real profits in real trading.

[indieover]

We often lose patience in live trading that's why we always have better performance in demo trading .I have nothing to lose in demo trading so there's no need or reason to earn or make profit in demo trading. But in live trading we are just tempted on the possibility of making a lot of,money in forex. That's why we would end up risking more and losing more.

[budado]

I guess in term of waiting period its the same and actually we are more patient dealing in real account than demo account. Because in demo account we have nothing to loss so sometimes we can afford to trade aggressively but in real account we know what we do in our real account can make us earn profit or loss profit. That's why its very important that we know how to trade in demo account first and build confidence but make sure in real account we can adopt as well.

[bangcool]

The pshychological factor will surely affect us in forex. When we trade using virtual money, often we got more profit because we didn't fear to loss our invesment. When we use our live account, often the fear will appear that make our emotion imbalance. In forex, we need to have clear mind if we want to make good analysis.

[chintu]

Most of the times we see that many traders will trade with demo account and they will be in profit , but when they trade with real account they will be facing loss most of the times and i can say that main reason for that may be the fear . Yes., fear will be bringing such chances , while trading with demo account traders will trade with cool mind because the currency is not real one but in the case of real they trade with fear and greed and that is the reason they face loss .

[riddick09]

This can be possible just because, there's not much tensions or difficulties for the traders about the demo and the risks. But still, it will have difference in the real trading because, in Forex we have these two types that has different means of the trading and we can say, that the importance of the two also differs. In demo to have find the best indicators for us and the real one to apply wisely our strategy.

[savehouse]

the emotion involved when trading the real account often lead to majority of newbies and trader lose,not until a trader is able to deal with his emotion as a trader and remain discipline and focus,i can tell the trader will be able to make something good from trading Forex.but not all trader has being able to deal with the emotion involve in trading.

[pepy]

Even in demo account i still see some people that loss their money too just for the sake of learning even without using much emotion, actually emotion has it own part in forex, and also in demo account with real account. but for demo performance that usually good than real account is an old fact, in new fact we still don't know what will happen too.

[arhabib]

Actualy we don't have to be worry about fund during tradin in demo version. So there is more oportunity to make

profit in demo. So this is the big difference between real adn demo trading.

[indieover]

This can be possible just because, there's not much tensions or difficulties for the traders about the demo and the risks. But still, it will have difference in the real trading because, in Forex we have these two types that has different means of the trading and we can say, that the importance of the two also differs. In demo to have find the best indicators for us and the real one to apply wisely our strategy.

 

i hardly feel the tension when i am trading on my demo account if there is some tension it is just so small that i could easily manage the tension i would feel in the demo account. unlike in the live account, the tensions can be overwhelming because we don't want to lose a big amount of money. so th demo account is good place to learn the technicalities of forex trading.

[gaban]

Actualy we don't have to be worry about fund during tradin in demo version. So there is more oportunity to make

profit in demo. So this is the big difference between real adn demo trading.

 

Yeah, psychology have important role when trading, most all traders feel so when trading with demo account, include myself. I can feel enjoy and trade without fear when trading with demo account, that's why i can make profit consistently.

[budado]

the simple reason is that in demo account we have big virtual funds. Try to trade the same amount in real account and chance are the result will also be the same. But since in demo you have 50,000 dollars virtual funds while in real account you only have 20 dollars to trade I'm sure the big difference in trading capital is enough proof that capital do really make a difference when you trade.

[standart]

the problem lies is psychological and not in technical. if trader able to get good result in demo account, technically able to repeat the same in live account. however, psychologically it not that easy because in live account, trading involving real money. more pressure appear during trading in live account rather than in demo account.

[riddick09]

Every trader has this difficulty with their trading psychology and no doubt that it's because we are born with emotions and therefore, we usually have it in our daily lives and we can't just ignore or able to disable them or get rid of the emotions as that is ourselves. What we can only do is to manage our emotions in a way that we can handle the intense emotions that will not affect our trades.

[humanhope]

I think that usually newbie traders suffered many losses in real account although they could make good profit in demo account. it is because demo account is really different with real account. also the psychology is different here and then because we underestimate real account after we succeed to earn many profits in demo account.

[Jeremi]

It is expected result. in demo account we have bit more freedom and that will cause us to make some very bold moves and use high leverage, but in real account normally we will not make such moves. That's one of the reasons for the earning difference between demo and real trading.

[humanhope]

I think that its fair actually, because everywhere the demo account only for exercise, so no one feels overwhelmed, but sometimes the beginners also have a bad performance in demo account when the first they got on to forex business.

[RodWell]

Yes, demo account is only for exercise for beginner traders and for testing our strategy in expert traders. Usually, demo account is better than real account because in demo account is easier to obey rules and it's easier to accept risk. If we made few mistakes, we can take our mistakes but it didn't happen in real account.

[Jeremi]

I am more careful in my demo account than in my real account. In real account i am overcome by greed that i want to increase my lot immediately i will have some success in my lower lot. So that is why I have loss a lot in forex. While in demo trading, I just stick on the same small lot.

[humanhope]

Sometime demo Account Performance is go better than real to me and i think the because here in demo i trade without fear and in real there is lots of exercise and sometime wrong decision and another important fact that here sometime play emotion and obviously greed which leads us loss our funds.