🎭 Profit in Demo Account But Loss in Real Forex Account
Profit in Demo Account But Loss in Real Forex Account 🎭
What is Demo Trading Account?
Is Demo Account practice is necessary?
Where can I open Demo Trading Account?
You must fill this Trading Account with the same amount of money. which you are willing to maintain in real life. It will help you a lot in the calculation of profit factors.
Why do new traders book profit in demo account and make losses in real account?
The answer to this question is totally depends upon your trading styles and your psychology as well as your trading rules and ethics.
If you deposited a huge amount of money in Demo Trading Account, then you can not evaluate your real progress of wealth creation power.
Kindly use the Demo Trading Account size max up to 3x of actual/ real trading account in terms of Money. It will help you in the creation of Trading psychology stronger.
If you are not using stop-loss level and Demo trading account size is large. you are probably trying to book only profits. because of Currency Market always oscillates between a certain range of figures. you can feel good with positive trades.
But My dear Trading Friends, this habit can finish your trading journey. Try to always put stop-loss as per your Trading Styles in your Demo Account also. It will develop a very good habit and loss booking ability in your Mind. Because In real Trading, we have to prepare our mind for booking losses. If you are practicing this habit of starting at Demo Account. You will not feel depressed if your stop-loss hit in real account.
Because if you are not habitual of taking losses then you can start revenge trading for quick recovery of losses. which will put you in the trap of loss and Trading Account Wash.
If you are not following your trading rules as per your strategy which you have already practice in demo trading. then you can book losses in a real account.
For Example - if you have practiced a 5-Minute Scalping Strategy in Demo Trading Account. Which says put stop-loss as per the second last candle. but in a real account, you are setting up the stop-loss level far away from the real strategy for reducing the chance of hitting stop-loss. It will destroy your risk to reward ratio which leads to the net loss in the end.
If you have changed the Broker and Spread is changed.
For Example, You have practiced in Demo Trading Account in FXTM and you are Trading in FBS Broker with a different Account Type (in terms of spread). Then It is possible you have to book loss in some trades due to Spread Factor.
if you are not choosing the optimal lot size as per the currency tick value and Trading account size. then you will be in negative progress or you can book losses in some trades.
For Example, You have practice in Demo Account with XAUUS (Gold) with lot size 0.05 having Account Size $200 only and you are trying to trade with lot size 0.10 in a real account with the same account size. then, In the case of hitting stop-loss, you will lose more money which can depress you. Kindly use the Optimal Lot size as per the "Trading Signal Strength + Account Size + Currency Tick value" and practice in Demo Account First with major lot sizes in which you feel comfortable.
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Demo Trading account is used for practice Forex Trading by beginners as well as experienced traders. So that they can build their profitable trading strategy or practice newly learn trading style. But you should follow all of the Trading ethics and rules in the Demo Account also. so that you can also book profit in the real Forex trading account.