The three psychological differences between Forex demo trading and real trading

As a newcome cashback forex to the Forex market, you are often encouraged to practice demo cashback forex for a period of time before starting cashbackforexreview trading Through demo trading you can hone your basic trading skills without risking your hard-earned money, develop a trading plan, implement proper risk management cashbackforexbtc experience the psychology of trading You have the ability to make consistent profits and build up enough confidence in trading Once you have the ability to make consistent profits and have built up enough trading confidence, you can open a real trading account and get started because you have been able to make consistent profits in demo trading and its not so difficult to make money in real trading, is it? If you think so, youre wrong! Big mistake! When most newbies move from demo trading to real trading, they usually think that their beautiful demo trading results can be replicated in real trading, so many newbies get frustrated when they find out that the reality is not what they thought it would be! Here are a few reasons why things can get so bad First, real money means real emotions As a forex trader, we try to be as calm and rational as Kristen Stewart (the forex guru) when trading. To further illustrate the point, compare how you felt when you first traded in a demo with how you felt when you first traded for real. Did it make you lose your appetite? Did your hands even tremble? If so, you will either fall madly in love with it or you will be extra nervous when you trade for real. If you make a series of mistakes in a demo trade, you will still feel good because you know you can easily start over and it wont make you feel too much psychological pressure. Because you are now facing real money risk, you will be emotionally more invested in the outcome of the trade. Therefore, this temptation will become stronger and more dangerous when it comes to your bad trading habits. How do you handle the difference between demo trading and real trading? There is a good way to bridge the gap between demo and real trading - it may seem difficult to replicate your calm trading mentality from demo trading to real trading, but by focusing on the process rather than the profit you may be able to do this one trade at a time and then focus on sticking to your trading plan and implementing proper risk management to ensure you stay within tolerable limits. This will help you relieve the psychological stress of trading and focus your attention. Maintaining good trading habits such as keeping a trading journal is also a good way to carry over successful advice from the simulation to the real deal. How did your trading decisions and reactions change in the real trade? Take stock of what you could have done better. By recording the mistakes you made in live trading but rarely make in demo trading, it will help you discover which ones you need to put your mind to. There is no need to be intimidated by the difficulties we need to fear the market but not be intimidated by it! For more learning forex - forex basics, how to speculate in forex questions and answers, please visit: forex learning section