Post
Topic
Board Trading Discussion
Re: Is a demo account necessary for a beginner trader?
by
justdimin
on 08/06/2021, 10:51:10 UTC
As a construction of your money management and risk management.[/b] 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.
This point is important. While you learn the management of funds and various other things but you will never have the same tension as you would have in real trading.

You consider betting with virtual money on sports, you will enjoy the gambling but when you do the same with real money you will feel tense and that is exactly what happens in trading, when your life savings are put on the line and your portfolio is dropping, you will always feel the pressure and will be under the pump which forces out mistakes.

I am not saying demo trading is not worth it, but at times you need real trading experience to cope with the real tension. Playing video games and boxing in games doesn't prepare you for real boxing match Smiley.