3 Reasons Your Forex Demo Account is Killing Your Trading Success

The Forex demo account is a symbol of brokers' willingness to meet the needs of retail traders. It satisfies a specific need: to practice and learn how to invest seriously before risking one's own capital. Very often, even the most willing aspiring traders feel that theory alone, no matter how well-studied, is not enough. It's necessary to take action, and if nothing is risked, all the better. This is the function of the Forex demo account: to allow traders to invest in the real market but with fake credits. These particular accounts have gained the favor of users and industry experts, who often ignore or underestimate the risks their use entails. Yes, in Forex as in life, there's no such thing as a free lunch, and even "simulating investments" can be dangerous. In some cases, the abuse of Forex demo accounts can even "kill" or nip in the bud the hopes of embarking on a profitable trading career. Why? Here are three reasons. It accustoms to large volumes. You start with 100,000 dollars. They're worth as much as Monopoly banknotes, it's true, but they hide some pitfalls. If a beginner starts trading with such high figures, albeit fictitious, they will get used to maneuvering large volumes and could lose a sense of proportion. Obviously, this can only happen if the trader does not possess sufficient strength of mind, but the risk exists and should not be underestimated. It's a realistic simulation, but only up to a point. The reason is similar to the previous one, but there's more. When investing with a demo account, the conditions may be different from the real ones. First of all, for the capital available, but also for the effects that the lack of risk causes. If an individual has 100,000 dollars at their disposal that are "not theirs," they will not behave as if they were investing 100,000 dollars of "their own." No matter how much an aspiring trader may intend to learn and therefore treat the demo as a serious thing, they will always be subject to this discrepancy. It doesn't teach the most important lesson. Here's the real sore point. The demo account does not contribute to developing the most useful competence: resisting stress and emotional pressure. Emotions, especially extreme ones, are a constant in a trader's life and all depend on the danger of losing money. But if this risk is not there, then the trader cannot develop any competence. Therefore, even in the best-case scenario, they will come unprepared to the appointment with the real market.