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

[sakai]

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.

[StevenBendre]

Often demo account is better than real account because in demo account, we used virtual money so we did trading with nothing to lose. We can easily follow trading plan and we could easily to be discipline to use good money management but in real account, we used real money and our psychology will give impact too for result in trading. Sometimes, we didn't sure to open position or close position.

[euro]

Of course a demo is always better than a real one cause you lose with fake money. Now, losing with fake money is so much easier to trade and no stress there but once you trade with your hard earn money, it will take you like an hour longer to open a trade cause you're thinking so hard as you don't want to lose money. You will also not open as many trades and you're not willing to take large risk like a demo and you will be so down if you lose. 

[savehouse]

i think people dont take the demo money seriously and this is why people fail with the real account,i believe people get carried away with the profit and loss they are making when trading,i believe people get to attach to the money they make with the real account and when they are loss,there get carried away.

[euro]

i think people dont take the demo money seriously and this is why people fail with the real account,i believe people get carried away with the profit and loss they are making when trading,i believe people get to attach to the money they make with the real account and when they are loss,there get carried away.

That sounds just about right. People don't take demo seriously. The take a real account with their real money seriously. Its like giving someone a car and seeing them trashing it but if they buy it with their own money they will not trash it and they will care for it better. The same in forex, if they put out their own real money they will take care of the account so much more and trade better too than a demo. 

[HarryPotter]

Most people can trade better in demo account than in real market. It is emotion that plays here. When using demo account you don't need to worry to loss money but with real account you can't make mistake because it can make you lose money. So if someone still can handle how to manage emotions I suggest not starting a real account.

[ivan]

That is better to use demo account to learn because there is no risk and we can test effectiveness of our strategy but there is time to use demo account not only as testing platform but there is time to treat demo account as live account as simulation before we entered to real account. It can give us more knowledge how to move technically in certain condition.

[StillAlive]

Actually learning forex can be done with demo account or real account. If you are still new in forex you can use demo account to learn how to open position, how to put stop loss or take profits. And with demo account you can try some method you learn from eBook. In real account you also are still learning how to control your emotions and how to manage your loss.

[euro]

Most people can trade better in demo account than in real market. It is emotion that plays here. When using demo account you don't need to worry to loss money but with real account you can't make mistake because it can make you lose money. So if someone still can handle how to manage emotions I suggest not starting a real account.

Yes the mentality is very different in the two. When you trade in a real account you will take time to do it right and you use less capital and you check on it more often and you're less reckless than a demo cause in a demo, its with fake money so you do not care and you're more careless with it. I think once you get to like a cent account, you will get the real pressure of a real trade so you get some more experiences. I highly recommend like a forexcent account so you can gain some real live trading environment in order to make more profits and gain more experiences. 

[sakai]

At most we trade on demo account without worry about loss or less worry because it's not real money, it's just virtual one so no problem if we loss 1 or 2 dollars but we cannot trade with the same emotion on real, it's real money that we all affairs loss.

[Samar]

There is no tension while trading demo account and on one wrong trade we can enter into another bigger trade and so on to cover earlier losses so ultimately we are left with the profit. But this is not the case in real accounts it is difficult to gather courage to enter in fresh bigger trade after bearing losses early.

[StevenBendre]

It is because of out change in emotions. With our Demo trading, we are free enough to risk our virtual money without any risk and at the same time, we also can patiently wait for out TP to get hit. But, this isn't the case with real accounts. Our emotions are quite high in trading for real money as we look to take even the smallest of profits home and miss the opportunity to earn a better profit.

[ivan]

In a demo account, the money isn't real. Whatever you do with a demo account, does not count much. This gives the trader a lot of freedom, which may result in success. In a real account, you are dealing with real money. People may get too excited and nervous; in the process they can lose money. But if we have experienced always and will predict our success after all of the mistakes we have done and also success then it will be a good effort on the demo account.

[StillAlive]

While we are trading through a Demo account we don't have to rush our trades. We can relax as we don't have fears of loosing our money. However, in the case of real money, we do get excited even by a smallest of profits and do grab it without waiting patiently for big profits. So there is a big difference between the demo and real accounts.

[HarryPotter]

Well, when trading using virtual money we play it like a game and no sentiments are involved, Further when a trade ends with loss we can simply open another bigger trade and cover up losses, while about doing same with real account we have to think many times as real money is involved.

[sakai]

There isn't any technical difference between the two types of account as the activities which can be performed in demo account can also be performed in Real account. The only reason why our account performance is better in demo accounts is due to the fact that we are not afraid to hold a position in either big losses or profits while trading with virtual money unlike real account.

[riddick09]

That's correct. There's no difference when you see it technically because, we use the same trading strategy and the market. Therefore, we should realize that the difference only in the real trading is the emotion and risk in trading which affects the traders in their analysis and decisions.

[gaban]

yes I agree with you. Differences demo account with real accounts only thin. In the demo account our psychology is not tested. Because we berdagangnya using virtual money. While in real accounts, we are more in psychology tests. Because we berdagangnya using real money.

[ivan]

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.

[HarryPotter]

In demo accounts we are very confident and we are very patient in waiting to have big profit. While in real account we are quite so afraid and even close the position immediately. I don't know if demo will give us good performance if we are in the real trading. The mind set does change if we trade for real money. We become a bit more cautious with our trades and do get excited looking at the small profits.

[StillAlive]

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.

[standart]

traders can trade calmly in demo account due to use virtual money. which enabling them to lose nothing even though they are suffering loss and make mistakes. while in trading live, pressure increase because traders need to avoid mistakes and many losses. and it make traders unable to calm which lead them even unable to discipline anymore with plan and strategy.

[gaban]

In the demo account we can learn the basics of trading . We can trade with as they pleased without fear of losing money . Because money is used is virtual money . So despite getting a big loss then it is not a problem . But in the real account , we must be careful in trading . One little , could be fatal for our trading . Because used Here are our own currency .

[Bagus]

In the demo account we can learn the basics of trading . We can trade with as they pleased without fear of losing money . Because money is used is virtual money . So despite getting a big loss then it is not a problem . But in the real account , we must be careful in trading . One little , could be fatal for our trading . Because used Here are our own currency .

indeed true in the demo account we feel calm in the trade and do not feel in a hurry to trade, so maybe that's what allows us to gain an advantage in trade in demo account is very different from using a real trading account is full of mental and emotional stress in the trade

[RASTA]

I also do not deny the forex trading would be better to be in a demo trading account because emotions are not depressed and did not lose any weight will be different from the real trading account no matter how small you lose weight then it will be a trade

indeed true in the demo account we feel calm in the trade and do not feel in a hurry to trade, so maybe that's what allows us to gain an advantage in trade in demo account is very different from using a real trading account is full of mental and emotional stress in the trade