It is a widespread problem for the trader when they open a live account and start to lose money. One can be very good in a demo account, but you cannot tell that trader is good in live accounts. This is the sad reality for the new traders. Almost everyday trader has a transition period between demo and live trading, where the trader seems to lose the way. If any traders are experiencing this kind of problem, this article is for them that will give the ways to get back the winning ways.
There is no pressure when the trader is going through demo trading, but pressure increases when the real money is on the line.
It is another step to be a successful trader. If this trading process were easy, then everyone would do this. But it is not the actual cause for the new traders. Those who preserve through the adversity get to become profitable day traders. A piece of very comfortable news is that every successful trader who comes before the similar transition phase, this problematic process become affordable for them. Always remember, practice makes a man perfect. Click to read more about the demo environment and start taking the trades with the high end broker. Once you master the technique of trading, you should be able to change things fast without having any major problem.
Changing the market condition
The transition from demo to live trading is difficult if the demo trading period is relatively brief. The market conditions are continually changing. So, only spending a month or two in a demo account means the trader is not likely prepared to handle the market’s various conditions. The trader who is trading a demo account during a significantly violate period they are getting used to the big moves and begins to expect the outcome. The primary strategy is built around maintaining the big price swings.
This strategy works best in the demo account and in violating conditions. Though the volatility is dropped, the traders continue to assume every trade’s result in a significant price swing. If these moves are not completed, the trader’s account shows some difficulties. The trader failed to adapt to the market. It shows that the trader is not ready for market achievement.
In some slow market conditions, traders can face the same situation. But when the trader opens a live account, the conditions are relatively volatile.
Without practicing in the same environment, demo trading is not easy to achieve success in the live market. The trading plan is very crucial in some cases. The traders must know when they need to trade and when not to trade. Suppose it is not suitable to trade in a sideways market, whip-sawing markets, volatile markets, trending markets, and, lastly, slow-moving markets. So the new traders have to struggle after going live. They must prepare themselves according to the market conditions. In such types of conditions, live trading should be put on hold.
Psychological thoughts in demo and live trading
In live trading, many traders do the opposite. They usually start to question each trade. There are some significant differences between demo trading and live trading like fear, anxiety, or fear when trading methods change according to market demand.
The trader can get a trading signal. There are some possibilities to lose money, so the traders sometimes took themselves out of the position. They randomize the trading results and engage themselves to a large contingent of losing trades.
To be a successful live trader, trader requires completely embracing trade economy. Once the belief level is covered, then the fear of losing trades can be minimized. The first trading live process makes the smallest position for trade marketing. In this way, the loss on each trade is so small that it should not be a concern. Using a small position, traders aren’t clouded by anxiety. Moving from demo trading to live trading should be simple.