The difference between a Live Account and a Demo Account
For those of you who have jumped into this forex business would already know about the account Live den Demo account. But few know the difference before feeling and having experience using both.
Many sound curhatan traders about these two accounts. Especially, when a trader trading using a Demo account is always profitable and profitable. But when the trader is switching to using a Live account then that is obtained is a loss. Whereas using the platform of the same broker, the same market / pair, same lot size and others the same. Then where is the difference?
The main difference between Live and Demo accounts is the use of risky capital. Demo accounts do not use genuine money to be risked while the Live account uses original money as capital to risk. Then why the results can be different?
The answer is that one’s emotions during trading greatly impact their decision-making abilities when using the original money.
What you want to show here is not to denounce a demo account. Because demo accounts are beneficial for everyone who wants to learn the basic mechanisms of the trading platform. It is also useful for traders to mepraktekan strategies that they will use and practice of inserting orders.
Even if traders often experience losses, sometimes frustrating and demo accounts can be effective for temporary transitions. When a trader is in a loss, their logic brain is focused on their lost money.
Demo accounts look easier because you can have capital in accounts that can be filled at any time. So there is no risk of genuine money. If your trading is chaotic, then you can start from scratch without any real money losses.
The emotional effect of a trader is much stronger when trading with real money. The use of real money as a capital, you will be tempted to commit a number of trading errors, such as moving the stop away from the entry level, exit the position before touching your profit targets, entering trades that do not meet your criteria to be “revenge” after the previous loss, and etc.