Why I am successful on Forex demo account , but fail on live account?

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Differences between Demo and Live account

 

It is much easier trading on Demo account for several reasons. The most important one, there are no emotions in trading. That might not sound as much, but Forex trading is all about emotions. Emotions are what moves the market. While we trade on a demo, we don’t trade with actual money, but an imaginary one, so we are emotion-free.
Another reason is that on the demo account, all your orders are executed by your broker perfectly. There are no requoting, no swap, the spread is much lower, etc.
In live forex accounts, trading traders always find that their orders have been executed at high levels by the broker, thereby putting them at a slightly higher risk as compared to what they had expected.

 

Purpose of a Demo Forex Trading Account

 

If you are new to the World of Forex trading, the best way to learn about market behavior and structure is to try your ideas and systems on a demo account. Also, more experienced traders are using demo accounts to test their new ideas.
Traders, especially those who have new entrants in the world of forex trading must use their demo accounts to test every single button or feature that the platform offers. This will help them to transition to live forex trading quickly and efficiently.

 

Conclusion

 

To sum up, both types of accounts are similar, yet different. And both have their purpose. Always keep in mind that the results you got on a demo, will never be the same in a live environment, so you need to be extra productive to get the desired results. Some brokers also trick you on demo accounts, so I would recommend going only to the best one for it, such as Dukascopy, Saxo Bank, and Alpari.
Don’t rush yourself too quickly in live trading, before you master your technique on a demo account. Short term results are not that much important, so try to trade on a demo account for at least a few months. And trade it, as it is your money in there, don’t put some crazy sum as 1 million dollars.
Always remember, patience, endurance and results will come.

Mislav Nikolic
Bull Capital

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