brokenblade Posted May 9, 2012 Share Posted May 9, 2012 It's the psychology of the trader once he goes into the real account. With the demo account, you know that you are only trading virtual money. With a live account, you are trading with real money and your own money. It is amazing how much of a difference it makes. The best you can do is exercise control over your emotions. You also want to know the factors that influence the market and watch out for them. Quote Link to comment Share on other sites More sharing options...
budado Posted May 9, 2012 Share Posted May 9, 2012 I just read an explanation and its shock me to what I read. Its because of some manipulation of some broker. For example some broker site will going to fill your SL and you loss in real account but in demo account some manipulate by not hitting the SL especially if they know that the pair that you are trading will eventually recover and make money. Right now I'm google where I read it but so far I'm in vain. Quote Link to comment Share on other sites More sharing options...
tirus Posted May 10, 2012 Share Posted May 10, 2012 It's the psychology of the trader once he goes into the real account. With the demo account, you know that you are only trading virtual money. With a live account, you are trading with real money and your own money. It is amazing how much of a difference it makes. The best you can do is exercise control over your emotions. You also want to know the factors that influence the market and watch out for them. Â It is unfortunately not easy to change this mindset but that it is very important element that is key to the differences between the different behaviours in a demo account and in a real account. The problem is this results in a newbie trader not getting the best out of a demo account trading because of that psychology that your are trading with virtual money with nothing to loose. Quote Link to comment Share on other sites More sharing options...
pepy Posted May 13, 2012 Share Posted May 13, 2012 It is unfortunately not easy to change this mindset but that it is very important element that is key to the differences between the different behaviours in a demo account and in a real account. The problem is this results in a newbie trader not getting the best out of a demo account trading because of that psychology that your are trading with virtual money with nothing to loose. but it will be better if we want to change our mindset when we want to trading, i know some people especially newbie become afraid or cannot control their emotion when they want to trading in real account and like what we expected they trade better in demo account rather than demo account Quote Link to comment Share on other sites More sharing options...
tirus Posted May 13, 2012 Share Posted May 13, 2012 but it will be better if we want to change our mindset when we want to trading, i know some people especially newbie become afraid or cannot control their emotion when they want to trading in real account and like what we expected they trade better in demo account rather than demo account  It is always even harder for newbies to adapt. Within a "training" or "simulation" environment which is what a demo account does provide for the newbie its easier because emotions are not all over the place. So what needs to be taken care of as you corretly put it is controlling your emotions in live trading. Quote Link to comment Share on other sites More sharing options...
pepy Posted May 22, 2012 Share Posted May 22, 2012 It is always even harder for newbies to adapt. Within a "training" or "simulation" environment which is what a demo account does provide for the newbie its easier because emotions are not all over the place. So what needs to be taken care of as you corretly put it is controlling your emotions in live trading. it is better if you can control your emotion in every trading no matter what kind of trading is that, real or demo trading,if you can put your emotion in the right place there will be no difference in trading between real trading and demo trading, or maybe you can even perform better in real trading, the thing that newbie must be think before trading is emotion they have. Quote Link to comment Share on other sites More sharing options...
tirus Posted May 23, 2012 Share Posted May 23, 2012 Yes it may be harder for newbies because they may spent time thinking hard about their decisions and this is where emotions can manifest. I still believe that practice is the only way that we can all get to keep these emotions under raps. We eventually get to let rationale do the thinking and make better trading decision the more we mature in our trading skills. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 2, 2012 Share Posted June 2, 2012 Yes it may be harder for newbies because they may spent time thinking hard about their decisions and this is where emotions can manifest. I still believe that practice is the only way that we can all get to keep these emotions under raps. We eventually get to let rationale do the thinking and make better trading decision the more we mature in our trading skills. Â yeah so that is why i advice for newbie to try demo account first, just know a bit about forex and everything about it, there they can learn about trading and don't need to afraid about loss every single cent when they make experiment or just make little mistake here,a nd maybe that is why some people trade better in demo account Quote Link to comment Share on other sites More sharing options...
budado Posted June 22, 2012 Share Posted June 22, 2012 Its better because in demo account usually you have a big capital to start with. Unlike if you are trading in real account that you invest minimum amount. The result is that you will have low funds to survive market volatility. But if you have good amount of funds then you can survive market volatility without any problem at all. Quote Link to comment Share on other sites More sharing options...
rexway Posted June 24, 2012 Share Posted June 24, 2012 Sometime I will have to say that demo account performance is good to some extent, but I will love to say that the main reason behind this is from brokers because some trader beleive that some brokers do manipulation to gain profit,but for me if you choose a good broker and learn to make sure that you win its much more possible to overcome this. Quote Link to comment Share on other sites More sharing options...
tirus Posted June 25, 2012 Share Posted June 25, 2012 Sometime I will have to say that demo account performance is good to some extent, but I will love to say that the main reason behind this is from brokers because some trader beleive that some brokers do manipulation to gain profit,but for me if you choose a good broker and learn to make sure that you win its much more possible to overcome this. I havent come across that type of information myself. So what you mean is that you will get to experience winning trades in the demo account to a point where you think that strategy is up to scratch only to encounter some losses in a real account? I have never heard about this before. Quote Link to comment Share on other sites More sharing options...
pepy Posted June 27, 2012 Share Posted June 27, 2012 Its better because in demo account usually you have a big capital to start with. Unlike if you are trading in real account that you invest minimum amount. The result is that you will have low funds to survive market volatility. But if you have good amount of funds then you can survive market volatility without any problem at all. lol still useless, if you don't have good trading experience or skill big amount still nothing lol, in demo account we don't use the real money and i think that is the only thing that make us better trading when it comes to trading, even you have big amount or virtual money, but you don't know any and start experiment i am sure you will get a lot of loss, just like what i did when learning forex for the first time in demo account Quote Link to comment Share on other sites More sharing options...
gbengustic Posted July 3, 2012 Share Posted July 3, 2012 I have also experienced similar problem during my trading with some brokers, their demo account usually gives me good result while the real account is something else. Even when i think i've found a perfect strategy, and i try it out on the real account , i usually get a totally different result which is not favourable. Quote Link to comment Share on other sites More sharing options...
pinoycity Posted July 5, 2012 Share Posted July 5, 2012 I have also experienced similar problem during my trading with some brokers, their demo account usually gives me good result while the real account is something else. Even when i think i've found a perfect strategy, and i try it out on the real account , i usually get a totally different result which is not favourable. Â I think, its because of the emotions involved. In a demo forex trading account, you do not have to concern yourself with losses as you are not really losing real money. In a real account, its different. Since you will be losing real money, you get to be more cautious which far different from the careless trading you do when you trade with a demo account. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted July 6, 2012 Share Posted July 6, 2012 Its certainly the emotions we have in the real trading. If we have observe carefully about the difference when we trade then we will notice about the different emotions that showed up when we start and we are closing our trades. This is one of major reasons why traders fails and difficult to cope up. Also, because of the forex market volatility. Quote Link to comment Share on other sites More sharing options...
Tariq777 Posted July 7, 2012 Share Posted July 7, 2012 Because there is no risk involved in demo accounts and therefore you don't have your emotions involved in the demo trading and that's the main reason why your performance in demo is way better than in the real accounts Quote Link to comment Share on other sites More sharing options...
monyitomon Posted July 8, 2012 Share Posted July 8, 2012 Emotions could really affect our trading. Using a demo account we are trading without any risk at all, in real trading we must not allow negative emotions to control us, don't let this affect your decision making. But I guess we can all realize that losses is part of the business, it is playing a major important role in learning. Quote Link to comment Share on other sites More sharing options...
budado Posted July 9, 2012 Share Posted July 9, 2012 lol still useless, if you don't have good trading experience or skill big amount still nothing lol, in demo account we don't use the real money and i think that is the only thing that make us better trading when it comes to trading, even you have big amount or virtual money, but you don't know any and start experiment i am sure you will get a lot of loss, just like what i did when learning forex for the first time in demo account Its seems you don't know what thread your posting at. This thread is about why demo account peform better than real account. Now does your post answer to the question of this thread? That's the reason I give why in demo account its peform better than real account. So try to post depends on what the thread is all about and not about what other poster post unless its out of topic. Quote Link to comment Share on other sites More sharing options...
indieover Posted July 11, 2012 Share Posted July 11, 2012 of course demo account performance is much better because we are not afraid to trade in our demo account. so we tend to trade more in our demo account which we don't usually do in our live account. because we are very cautious the way we trade in our live account. Quote Link to comment Share on other sites More sharing options...
pepy Posted July 16, 2012 Share Posted July 16, 2012 Its seems you don't know what thread your posting at. This thread is about why demo account peform better than real account. Now does your post answer to the question of this thread? That's the reason I give why in demo account its peform better than real account. So try to post depends on what the thread is all about and not about what other poster post unless its out of topic. ? i don't know if i post in the wrong thread, but i said before that in demo account we have alot of bucks to spend, right? and that is only virtual money, so no worry or even pressure and that is why people can trade easily and relax without need to thinking too much about how much money they loss, that is what i mean. and i think you are the one who OOT? i don't see anything related, only warn for me lol, you can report my posts if you want, warning will not give you any points. Quote Link to comment Share on other sites More sharing options...
brokenblade Posted July 18, 2012 Share Posted July 18, 2012 Yeah, the Forex broker can factor into this as well. Some Forex brokers can manipulate things for profit. That's why it is important for people to research each broker before joining. Even with a good broker however, a lot of people tend to fall short on real accounts. It seems like something changes when they do things for real. Quote Link to comment Share on other sites More sharing options...
pepy Posted July 20, 2012 Share Posted July 20, 2012 Yeah, the Forex broker can factor into this as well. Some Forex brokers can manipulate things for profit. That's why it is important for people to research each broker before joining. Even with a good broker however, a lot of people tend to fall short on real accounts. It seems like something changes when they do things for real. so that is why you need to choose some forex broker that is already credible and have good reputation. and so far i think based on psychology issue, that many people don't have too much pressure and more relax trading in demo account so that is why they even have more profit rather than using real account when trading Quote Link to comment Share on other sites More sharing options...
tirus Posted July 20, 2012 Share Posted July 20, 2012 *. of course demo account performance is much better because we are not afraid to trade in our demo account. so we tend to trade more in our demo account which we don't usually do in our live account. because we are very cautious the way we trade in our live account. They key is that you are not afraid or maybe to rephrase it you are calm and relaxed when dealing with a demo account as opposed to when you are in live mode where the prospect of making or loosing money is real and affects your state of mind. Quote Link to comment Share on other sites More sharing options...
indieover Posted July 20, 2012 Share Posted July 20, 2012 i don't think it is just bcause we have more confidence in our demo account. i think that trading in demo account is just naturally more easy than the live account. and because also we don't feel any emotion when we are trading on the demo account. Quote Link to comment Share on other sites More sharing options...
tirus Posted July 21, 2012 Share Posted July 21, 2012 But because you dont have to deal with emotions in here your confidence is bound to be on the rise. You will also confidently be able to perform trading knowing very well that even if you lose, you will not be losing any real money but can just start over and try again so it is actually the same thing. Quote Link to comment Share on other sites More sharing options...
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