If you have been demo trading for quite some time already, it might be time to open forex account with real money. Before you do that though, you must make sure that you are able to trade confidently and make consistent profits. Aside from that, you must be aware that there are a few psychological differences in demo versus live trading.
The first main difference is that using real money makes the emotions very real. Ideally, we try to eliminate emotions when trading but losing real money on a live open forex account can be very frustrating and painful. With that, the pressure to make up for the losses is greater and the temptation to overtrade or to abandon risk management rules is tough to resist.
Demo Open Forex Account
The lack of monetary risk on a demo open forex account makes trading decisions easier to make. Even if you try to imagine that you are trading real money, in the back of your mind, you know that your account can easily be replenished with demo money even if you blow it up. You are less nervous when making trade decisions to close early or to add to your position on a demo open forex account.
Before you are able to replicate your demo progress on your real account, you need to remind yourself to focus on the process and not the profits. Keep track of your demo trading success by noting down your decisions and mistakes in a trading journal. This way, you can identify what you can do better and which types of trading decisions you should consciously try to avoid.
Note that open forex account with live money could lead to losses at first as you try to make the necessary mental and emotional adjustments but this shouldn’t stop you from focusing on what you’ve learned in demo trading and improving.