Why demo performance is often better than live performance?

Discussion in 'General Forex Discussion' started by Rambo35, Oct 6, 2014.

  1. Lawrence

    Lawrence Active Trader

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    I can say for sure that the performance in the Demo trading account that you are getting will not be the same in the Real trading conditions due the the change in the trading based Emotions and psychology coming into play :(
     
  2. ambitionfx

    ambitionfx Trader

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    A limit of demo account is that you can't have same trading conditions with real account when your broker provide multiple real accounts, generally most broker provide more than 2 kinds. A good demo system should allow trader to experience the real trading conditions.
     
  3. Well, one major thing is that in demo you are free of emotions. The second is that sometimes, especially if you trade with certain market makers, they can manipulate your trades as they have an interest..
     
  4. Lawrence

    Lawrence Active Trader

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    I started to use the Demo trading accounts when i was a newbie trader as at that time i had no idea about which type of trading is best for me. But then as i grew in my trading knowledge i came to know that trading is not going to be easy so i kept learning and now when i am a Professional Forex trader after years of trading experience all i can say is that i am using the Demo accounts now also :)
     
  5. olivine

    olivine Trader

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    Demo seems easy and interesting , real trading is involving more emotions and stress feelings to a trader. New traders use high capital , do multiple trading and win a lot of profit .This thing not applies whole in real trading because of difference of funds and low trading skill . That is why demo trading is more profitable than live trading.
     
  6. radex78

    radex78 Active Trader

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    Demo account and real account really different, usually demo account as trader they not involved emotion and fear to losing money, as trader will free use strategy and faced floating loss never make them fear loss money, but in real facing loss floating will make stress and sometime panic then closed on loss, to develop psychology trading use real account better than demo account.
     
  7. ProFXManager

    ProFXManager Active Trader

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    demo have no real buyers and sellers!
     
  8. radex78

    radex78 Active Trader

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    Actually market condition in demo server and real server is remain same, if occur slip of price might not differ much,demo account is useful for beginner to practice implemented their knowledge that already learned, like as test system trading based on indicator as learning stage.
     
  9. Lawrence

    Lawrence Active Trader

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    Yes, you are correct that the actual market condition in the both types of accounts are the same. The real difference is in the terms of the funds which are Real in the real accounts and Virtual in the Demo trading accounts :)
     
  10. radex78

    radex78 Active Trader

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    Yes and treat real money and virtual money is different case, usually trading in demo account will free from emotion pressure, which trader will never felt fear and scared to losing money and they can free mind although faced big loss floating, but in real account as trader will fear if look loss floating sometime make them scared and decided to exit at loss position.
     
  11. Lawrence

    Lawrence Active Trader

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    In our trading if we want to use Real money then we have to devise a trading plan that is good and using that plan we are able to earn good profits in our trades. There are many such traders who get under emotional pressure and thus they are not able to earn any income in their trading :)
     
  12. radex78

    radex78 Active Trader

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    Will hard to making profit if we trade under emotion pressure, treat real money if already have long time experience usually as trader will already feel common thing about profit and loss, and with plan trading hence any trader hopefully they can minimize the risk and increasing profit.
     
  13. bily.k

    bily.k Trader

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    Actually, DEMO server and LIVE server can never be same, similar, and very close yes, but never exactly same, since slippage and liquidity can not be simulated completely...
    Especially they will differ in scalping,,that's why many scalper EA actually work on demo and fail live
     
  14. Andika Anjani

    Andika Anjani Trader

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    Whoa, sir! Did you experience about this before?
    Technically, both demo and live account is same. But what makes it different is sometimes the broker manipulating demo account so we feel that our trading performance was lot more better than our trading performance in live account.. Gotta be careful...
     
  15. radex78

    radex78 Active Trader

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    Demo account is free from emotion pressure, but actually the market also remain same with real market condition, in demo account we use big capital in account while in real account sometime we use smallest capital and this also still we trade under emotion pressure.
     
  16. bily.k

    bily.k Trader

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    You're in slight confusion ....
     
  17. radex78

    radex78 Active Trader

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    Start practice in demo account usually as trader using big initial capital and this strong margin to trading with no emotion pressure and this ake enjoy in demo account although faced big loss floating hence will no matter because only use virtual money, but at least demo account is useful to test any syste trading and strategy with free of risk.
     
  18. Lawrence

    Lawrence Active Trader

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    Forex trading in the Demo account will help us but we also have to understand this fact that trading is not easy and will require much efforts from our side. So we have to think about it and then make some progress :)
     
  19. radex78

    radex78 Active Trader

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    Yes with demo account we an built up beterability if we learn seriously, but sometime as trader they trade on demo account just for fun and never serriously because only use virtual money, but trading with real money often get fail because trading in real account is more harder than in demo account
     
  20. Lawrence

    Lawrence Active Trader

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    The help and learning that we get with the use of the Demo accounts will make us better as a Forex trader one day and the main thing that we should always remember is that trading will always remain risky :)
     

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