Why demo performance is often better than live performance?

[Resolve]

Demo performance is better than live performance because the risk and real money are not involved so the trader stays calm while practicing on demo.

When we are trading in the Demo trading accounts we are not being serious traders and this is one of the mistakes we do.

 

[hk_09]

When we are trading in the Demo trading accounts we are not being serious traders and this is one of the mistakes we do.

Yes, for practicing stress free, demo is good. But if we see it the other way round, we should be as serious while trading on a demo account, coz that will somewhere take us longer in this journey of trading.

 

[Jerry_Ken]

Yes, for practicing stress free, demo is good. But if we see it the other way round, we should be as serious while trading on a demo account, coz that will somewhere take us longer in this journey of trading.

Correct. The foundations should be strong right from the beginning.

 

[Petrick Liman]

Correct. The foundations should be strong right from the beginning.

Like anywhere else!)

 

[Todor]

When we are trading in the Demo trading accounts we are not being serious traders and this is one of the mistakes we do.

Right. I think that's up to a trader with which approach he is using a demo account. If he is serious, good for him and if not, his loss.

 

[hk_09]

Correct. The foundations should be strong right from the beginning.

Yup! And that goes for all those ventures, we want to succeed in.

 

[PizzaMan]

Because live performance is usully exhausting.... in camparsion to Demo

 

[Jerry_Ken]

Because live performance is usully exhausting.... in camparsion to Demo

And that's because in live we actually trade with out own funds.

 

[hk_09]

When I was trading with a demo account, I was able to earn constant profit, and when I tried the same strategy in live trades, I mostly failed.

I understood that the demo was just a tool to learn about the live market, the prices changed, and the strategy that I used on demo had to be improvised.

That's right. It is not always that strategies winning on dmeo account will give same results in live trading too. Mostly, it varies from broker to broker, how similar the trading conditions are in both the accounts. Also , emotions enter when one is trading live, so there can be change in how one trades and the results.

 

[forexking]

Demo is often better than live because it allows you to backtest and formulate the strategy without having to use your own money. And also, you donot have to feel the fear of losing money in a demo account, but sooner or later, you will have to consider using a live account to start trading seriously.

 

[e_abrams]

Demo has its own (very necessary) uses, but it cannot be better than live because one cannot actually profit from it.

 

[Jürgen]

While trading in a demo account, there is no slippage, and we tend to take more risk and use several strategies which help in profit.

When trading live, the risk is real, so you start to hesitate to take risks and use the same strategy that once brought profit because you are scared to try new ones because it might cause a loss in your trade.

 

[e_abrams]

With a good broker the slippage should be as little as possible though.

 

[TimothyBoica]

What good phrase

 

[Fritz Fabiano]

With a good broker the slippage should be as little as possible though.

Yes. The broker i use also have a minimal slippage. So it depends on the brokers.

 

[e_abrams]

It very much does. Unfortunately, figuring out the slippage is big after you've already invested can be such a hassle.

 

[Dora_WalletInvestor]

Unfortunately slippage is very much out of our control - even with good brokers, it can happen.

 

[RaviTeja]

Demo performance is better because we keep practising on it without any kind of risks for loss of capital.

In live trading, we tend to keep our guards up and make mistakes because of fear and do not intend to take risks.

 

[e_abrams]

I wouldn't call either one of them "better" as both have their necessary place. You can't profit off demo. It's not a good idea to be learning on a live account from scratch.

 

[Crash101]

I think there can be fear in trading demo if you have set yourself a goal to be profitable on a demo account. I have a goal focused trading programme and the fear you have in trading demo is failing your challenge and the waste of time that relates so I think the fear can be similar and it depends on how you are doing demo trading. There has to be a goal focused orientated task which then puts you under pressure and this then will be very similar to trading live. The right approach is essential. I have put the details of the free programme I have developed in the "advertised" channel. If anyone is interested just trying to develop consistant traders using a goal orientated approach. The programme is free but there is a cost to you.. check it out.