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23 February

Psychological Differences Between Demo Trading & Live Trading

 

The reality of real-money trading*

 

  • When you placed your first trade with real money, did you break out in a full-body sweat?

 

 

It's common when traders switch to live orders after demo trading. *

 

But, what should be doing we do is not what we end up doing. Traders who have done

spectacularly well when they first started on demo account have suffered some significant 

 

losses shortly after switching to real money trading, Why?

Money Talks

 

Money DOES Indeed talk,

 and anyone who tries to say otherwise is simply a fool 

. In fact, money talks SO loudly that it penetrates through our advanced logical-thinking 

brain and goes straight to our more primitive “fight or flight” impulse and that impulse pushes us to join the battle to provide for ourselves, to achieve more than we ever imagined. Money talks and the smart ones listen.

The most valuable thing we can learn from demo trading

Is demo trading valuable? Yes. Should all traders demo trade with my price action trading strategies before attempting to trade them live? Absolutely. BUT, you should understand that there are ZERO* emotions 

involved with demo trading, and it should not be used as a crutch.

How to trade your live account like it’s a demo account

This is a little bit more difficult than it might seem since the risk of losing money is always present in a real account. But, there are some * “tricks”

that we can use to keep ourselves* calm 

and collected even while risking real money: 

• Accept that you will lose…don’t fight it – The first thing you need to do when trading with a real account is to fully accept that you are going to lose

 

sometimes. Don’t fight the inevitable losing trades, instead, learn to work with them and accept them as part of doing business in the Forex market.

• Don’t risk money that’s not truly “fun money” 

 As we’ve discussed before, never trade money that you really need for anything else in your life. If you want to trade in the markets you will have to have RISK CAPITAL

just like if you start any other business you will need capital, so remember that Forex trading is a business

 

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