- As a construction of your money management and risk management. I often read posts on this forum with the following content: .... on a demo account, you can trade without fear, you still won't lose anything, because you can start over and train every time. But what will you train there? The ability to start over? Undoubtedly, exchanges love such traders. But that won't work for you. It is precisely that on a demo account with a similar approach, you will not develop anything, nor any risk or money management you will master there.
As is often the case. A person makes deals on a demo account, loses, starts over, wins something, and then loses, then wins again, and so on. And such a thought is born in his head that well, this is not real money, so here you can try everything. But when I put real money on the exchange, everything will be different. I will be more attentive and conscious of my dealings, everything will be different. No matter how it is. This is nothing more than self-deception. In the real market, there will be exactly the same thoughtless entering and exiting trades. Nothing will change. Because you teach yourself this approach to trading. There are no risks, no money on the exchange, everything is conditional, so nothing stops you just clicking on the BUY\SELL buttons.
I have been against demo accounts precisely because of this reason, the most important skill as a trader or investor is not a great ability to predict the markets but money management skills, and this is something which cannot be learned by using a demo account, after all a paper loss of 10% is nothing, an actual loss of 10% will be incredibly painful for most newbie traders to the point they will make even more mistakes in order to get that money back, so it is imperative that those which really want to learn how to trade use real money in order to do so.