Why trade in demo not feel any risk??

Discussion in 'General Forex Discussion' started by edoforex, Sep 22, 2014.

  1. edoforex

    edoforex Banned

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    Most of the trader who learn to trade in demo account will never feel any risk.
    How come??
    And what is the effect of this?
     
  2. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    I think you know the answer on this one. When you trade on demo account, you don't feel anything, because you do not use your money and you don't care if you lose the demo money.
     
  3. Azforex

    Azforex Trader

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    You can try on demo with virtual money so you can try any pairs to test them out. No risk with real money :)
     
  4. vicknic

    vicknic Confirmed ProfiForex Representative

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    A demo account uses virtual money and so will not make you feel anything when lost.
     
    Last edited: Oct 1, 2014
  5. toretton

    toretton Trader

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    anyone who want to learn not on demo account can have a compromise. Try on mini or cent accounts with very small amounts of your money but this will help you save your money and feel real risk cuz losing your own money even in a small amounts is not very nice..
     
  6. Azforex

    Azforex Trader

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    I do agree with you that If you really want to test a profit or loss then try with small deposit.
     
  7. TR.PW

    TR.PW Master Trader

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    A demo account is just that, it is there for you to practice with, learn the ropes, etc.
    But you would need to trade on a live account for the valuable trading experience..
     
  8. bablogfx

    bablogfx Confirmed HotForex Representative

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    YEah there is no secrets revealed on demo, holy grail is after losing some deposits, frustrations etc. There is no way to go in profit without paying for education..
     
  9. triplet

    triplet Active Trader

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    In demo the trader do not feel any risk because his money is not involve and i think that is why most newbie fail and lose money when trading on live account .In live account your money is involve you need to apply risk and money management in which many traders struggle to achieve.
     
  10. limalima

    limalima Banned

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    Exactly...You are relaxed as anyone can be on any normal circumstance. You trade with ease, without fear.
    But I think the best part of demo trading is to prepare one for real account. Though things would not go exactly the way it was with demo when you trade on real account, but it is definitely helpful when used well and at every opportunity.
     
  11. Yuvalp

    Yuvalp Trader

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    I always explain this to my students, trading demo account encouraging illusions because you feel safe...you know deeply you can't lose.
    You have to trade at the beginning with the minimum amount which makes you uncomfortable when you lose, stay with this feeling again and again and if you will not run away from it this will be your first step to overcome your fear.
     
  12. inggo

    inggo Master Trader

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    I would say its the mind set that traders have in trading demo, coz its not real money and they feel its ok to just trade and trade despite the outcome, thats why traders are always reminded to treat demo money like real money, fear of losing is a big factor in determining the outcome of a trade, emotions, and another thing is there is a different between demo and live that most traders tend to neglect, sllippage execution and other factors that are missing from demo trading, so when trading live for the first time, start really small to get used tolive trading and the conditions that comes with it. happy holidays everyone.
     
  13. Ahmer

    Ahmer Newbie

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    Demo Account is only good for niwbie traders for first three months only. Trading micro lots on a small live account is even better. The best part of learning starts after wiping off your account quite a few times.
     
  14. Karissa Graham

    Karissa Graham Trader

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    Risk is everywhere in the Forex market, and if a trader doesn't take risk then he can not survive in this market, so you should treat it similarly in demo account, if you don't take risk in demo then you will not be able to trade in real account, you should feel risk and loss in demo account, so that you may understand the situations in real accounts.
     
  15. Azforex

    Azforex Trader

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    Not completely agree with you, Practice is always makes you perfect in any fields so never quit it.
     
  16. duxingxia

    duxingxia Trader

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    newbies or new traders should treat demo as real money to practice emotion control. and they should set their demo account to the desired amount they are planning to trade live with.
     
  17. ESinvest

    ESinvest Newbie

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    I guess the risk comes out when you trade with your real money, which is a huge mistake, because demo accounts give a great opportunity to test your skills and strategy with virtual money before moving to live environment, so people should take it as real as possible.
     
  18. inggo

    inggo Master Trader

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    yeah exactly, the fear of losing your precious money haha and the thought that it could be used for something else, thats why only trade what you can afford to lose.
     
  19. markiva

    markiva Confirmed ProfiForex Representative

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    In demo your money is not involved so you dont develop any emotional attachment when you are losing and there is no risk.
     
  20. Alex Hoggarth

    Alex Hoggarth Trader

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    It is kind of human' percetion and factor - not to view demo as a real account and thus the demo capital must be seen as your own.
     
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