I can make profit in demo account but I am in loss in real account! Why?
This a frequently asked question by the new comers in forex arena. Since we experience no emotion on a demo account and generally have much better trading results, we need to emulate the sensation of having no emotion while trading our real accounts. However, this is a little more difficult than it might seem since the risk of losing money is always present on a real account.
There are some psychological difference between demo and real trading. So many traders can make profit easily on demo account but loss when they trade on real account. They become disappointed with the difference of their demo and real account performance. They failed to find out this difference. So traders should know the variation of their performance.
Demo trading does not involve any emotion
It is seen that most of traders make profit on demo account. There can be some reason for that profit. In demo account, traders get virtual money. So they do not have any fear with that money. They have no tension for losing money. Therefore traders can take high lot for trading. When they profit, it becomes very high for their high lot.
There is no emotion involved with demo account. Traders can trade freely. No emotion in trading can bring good trading results. This can be a reason for make profit from demo account.
Traders can take any type of risk in demo account. They don’t feel any fear for taking risk. So they can take high risk in news time and make huge profit.
Traders do not think about their losing trade. When any trade goes against, traders do not afraid for that loss. Traders do not try to use their brain for analysis. They do not give time for making any analysis. So when they get time, they take trade without analysis.
Real trading is full of emotional aspects
So many traders around us are seen to fail to make money from real account. When they start real trading, they can repeat their demo performance in the real account. There are some reasons for their failure. In real account, traders trade with real money. So they feel a lot of tension for their real money. They do not want to lose their real money. For this tension, they can’t trade well and start losing money.
Emotion is great problem for the real account. Traders feel afraid to lose money and so they can’t take good trade and as a result they lose money. When traders see some profit on real account, they try to close that trade with little profit. They close 5-10 pips, so they miss huge pips from their trade. They could get 100+ pips, but they are happy with only few pips. Thus they make great mistake for making more money.
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