Will be trading demo account exactly like live Forex trading?
Allow me ask you a different question.
Whenever you purchase a house in the board game Monopoly, do you get excited or anxious?
So how exactly does that emotion compare to when one buys a real property?
Pretty different aren’t they!
I appreciate this is an extreme example, nevertheless the premise is the same. One transaction can have an impact on your life. Another won’t.
If you lose $200 in the market, that’s money you can not spend on something else. As much as you inform yourself “I don’t proper care, it’s only $200” your brain behaves differently than whether it was Virtual Monopoly 200$ bill
In case you ask this question to most traders, they’ll offer you hogwash on liquidity and spreads, saying buying and selling in the real live account is different because you’ll get different trade execution.
This is certainly true.
However, It isn’t really the reason you’re even more likely to earn cash on a demo account. The true reason is you, in addition to your brain’s reaction to live money trading.
I consider demo accounts are a new waste of time when you’ve learned how to use the platform. Of course, open demo account and discover ways to place & close trades. But once you have the basics right, deposit $100 in a live account (beware, you’ll almost definitely lose this money), this particular experience trading live will certainly give you a taste of what that feels like Forex investing for real.
No trader of all time has achieved long lasting success without understanding their particular own physiology around winning and taking a loss.
New traders usually think they should discover a winning strategy.
Here’s what you need to do if you wish to be a successful trader:
1. Find a basic technique.
2. Trade on a new live account with a small amount of money.
3. Do your best.
5. Begin again, learning from your own past mistakes.
6. Make sure to keep a record of your trades in addition to understand how and why you take trade decisions.
With time, you’ll understand how essential psychology is at trading. It is the primary thing I actually credit to my continuing success over the previous years being an expert trader.