Why Forex Trader Good in Demo Account but Failed in Real Account

By steven evans, 26th Jul 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/yu-hayko/
Posted in Wikinut>Money>Forex Trading

Find Out Why Forex Trader Good in Demo Account but Failed in Real Account

Find Out Why Forex Trader Good in Demo Account but Failed in Real Account
Failed To Control Emotion
Being Greedy
Over Confident
Summary

Find Out Why Forex Trader Good in Demo Account but Failed in Real Account

forex

Somehow making profit in forex demo account looks easier than using real account. There is a lot of traders who have great trading result in their demo account but they still failed when they are using real account. Usually they are failed because they can’t control their emotion in real account, they are being greedy while using real account, and also being over confident after having a good trading result in demo account. Demo account are having same price with real account so you are not supposed to loss if you are having a good result in demo account.

Failed To Control Emotion

Usually forex trader will failed to control their emotion when they are using real money. It simply because if they are losing in real account then it means they will lose real money. So having a floating minus in their open position can make them failed to control their emotion especially if they don’t use money management while trading.

Being Greedy

Being greedy is the most common mistake for forex trader and it can make them failed in real account because they can withdraw any profit from their trade in real account. Since we can withdraw the profit then sometime it will make them being greedy and trade without using proper money management such as stop loss. Greedy can also make the trader opening to much position in market or using too high lot size while trading, both of them also can make the trader getting margin call.

Over Confident

It’s normal if the trader will become confident after they are having a good trading result in demo account since it means they already have a good trading strategy to trade. However there is no 100% accurate strategy in forex so once the market trend is against us then it means we much doing cut loss immediately, since we never know if the trend will still continue or not especially when the market just releasing the news.

Summary

So that the most common reason about why people are success in demo account but still failed in real account. It can happen because they can’t control the emotion while using real account, it may happen because they are being greedy, and perhaps it happen because they are over confident with the trading strategy. Now you already know about this so I hope you can avoid doing this mistake.