Trading on a demo account, why successful demo trading does not guarantee success

What is a demo account and why is it needed, why the success of trading on a demo account does not guarantee the success of trading on real live money.
Working on the exchange is relatively affordable, giving newcomers hope to succeed easily. In fact, in order to make a profit in this way, you need experience, knowledge, professionalism and constant work on improving your work. Immediately after starting
work with a brokerYou can’t learn how to make sustainable profits. You need to try everything with your own hands, gain and test basic knowledge in practice, gain experience, on the basis of which your own approaches to creating effective trading systems will gradually form. Working on the trading simulator: https://youtu.be/3bjZMi6rRKM If you deposit your funds to a trading account, not knowing exactly how to open or close a deal, not understanding how to work with indicators and data, not being able to analyze the current situation, then – due to the high risk that is inherent in exchange activity, a beginner runs the risk of losing all his financial resources very quickly due to unprofitable transactions.

According to statistics, the first budget is drained by 90 to 95 percent of newcomers.

Based on the foregoing, we can assume that we need an option that provides for risk-free activities, which, nevertheless, will help not only to get acquainted, but also to understand in detail the main nuances of the activity of a trader or investor on the stock exchange. Most brokers offer such opportunities, providing the opportunity to trade with virtual funds. At the same time, you can get acquainted in detail with the mechanics of the exchange market, learn to understand the main issues of this area of ​​professional activity. A person does not lose money here, but does not receive a win either. Knowledge and experience – only they will be obtained as a result of trading on a demo account. After the trader learns how to act, increasing the available virtual trading capital, he will be able to switch to a real account in order to test what he has learned. Using a demo account can be useful for an experienced trader as well. He, trading according to his trading system, makes a profit, but at the same time he is looking for other systems, thinking about their creation. On a demo account, he can test them on various trading instruments. In order to use a demo account, you need to select the appropriate offer. At the same time, it is desirable that the user be provided with a full set of trading functions so that he can study them. This practice makes it possible to work out your trading system in detail, with which you can trade on a real account.

Working on a demo account will allow you to better master the basics of trading, but does not guarantee success when trading real money on a real brokerage account.

Trading is not always suitable for a particular person. By using this method, a person will be able to realistically assess their goals and abilities. He will see how well he manages to work in conditions of risks and uncertainty.

How to open a demo account on the exchange

Opening a demo account is offered by most brokers. In order to do this, you usually need to download the terminal and then enter your email. In automatic mode, a login and password are provided, using which you can open a demo account. https://articles.opexflow.com/software-trading/torgovye-terminaly-s-otkrytym-isxodnym-kodom.htm A trader will be able to perform the same actions here as on a working account, with the difference that he will not receive any profit or loss. The registration procedure given here may vary slightly for different brokers. For example, in some cases, pre-registration may be required, while in others, a training account is received directly in the terminal downloaded from the provider’s website. When choosing a training virtual account, it is recommended to choose the amount with which the trader plans to trade. This will give more realism in his perception of transactions. Sometimes a broker is chosen for work, which does not have a suitable opportunity for a trader to open a demo account. For example, it may not be functional enough or not provide access to the right tool. In this case, it makes sense to choose another training account for training. Next, step-by-step instructions will be given for registering a demo account with the KITfinance broker. To do this, you need to take the following steps: it may not be functional enough or not provide access to the right tool. In this case, it makes sense to choose another training account for training. Next, step-by-step instructions will be given for registering a demo account with the KITfinance broker. To do this, you need to take the following steps: it may not be functional enough or not provide access to the right tool. In this case, it makes sense to choose another training account for training. Next, step-by-step instructions will be given for registering a demo account with the KITfinance broker. To do this, you need to take the following steps:

1. You need to go to the broker’s website at the link https://brokerkf.ru/

2. You need to click on the “open demo account” button. This will open the parameter entry page.

3. You need to enter your name, phone number, email address. You need to select the type of terminal you are using. Next, you need to agree to the processing of personal data, then fill in the captcha.
4. You need to click on the “Submit” button.
5. An email will be sent to the specified email address, in which you will need to click on the link to confirm the data entered during registration.

Test letter example:

6. Next, you will receive a letter with a login, password and a link to download the terminal.

An example of an email with input data:

7. Then, using the link provided, download the terminal and install it on your computer.
8. Using the received login and password, which are entered in the terminal, the user can log into his account. For it to start working, you will need to download the keys that were in the attachment to the received letter (pubring.txk, secring.txk).
9. These files need to be copied from the download folder and pasted into the kit subfolder of the QuikKITfinanceGame folder located in the directory where the program was installed.

After restarting the program, the demo account will work:

How to get the most out of the trading simulator

In real trading, self-discipline plays an important role in following your rules, controlling risks and managing money. A demo account will not allow you to create completely similar conditions, but it will be useful if you follow these rules:

1. It is necessary that the amount with which the work is carried out corresponds to the one that is planned to be entered into the trading account. In this case, money management will be more realistic.
2. Considerable attention should be paid to the cultivation of self-discipline in following one’s own rules.
3. You need to have a good understanding of all the details of the terminal. In real trading, there should be no uncertainty in such matters.

It is necessary to think over your own rules of work that will help make trading on the exchange successful. Demo account on TradingView /TradeinView for trading on the stock exchange, using a trading simulator: https://youtu.be/jR0p5vVHCGY

Pros and cons of trading on demo accounts

When using a practice account, the user can use the following:

1. The trader will master the technical side of trading – how to open and close deals, how to use stop loss or take profit, and the like.
2. On such an account, you can learn the basics of working with indicators and Expert Advisors, learn how to work with the terminal.
3. A person will get the concept of limiting the risk of a transaction and money management.
4. Steps can be taken to develop a real trading system.
5. It is possible to check the effectiveness of using the methods of functional analysis. The user can study in detail how certain economic news affects the instrument with which he works.
6. An experienced trader will have the opportunity to test trading ideas without risking their own funds.
7. By working with certain tools, you can learn more about their features.

Using a demo account has serious disadvantages:

1. When making real transactions, decisions are made under great psychological pressure. This significantly changes a person’s thinking and can lead to different results and different solutions than on the training account. Therefore, it can be argued that a demo account creates a misconception about the work of a trader, which leads to illusions.
2. In this case, the transactions are carried out very efficiently. At the same time, delays may occur on real accounts that affect the result of the transaction.
3. In real trading, the ability to control strong emotions plays one of the most important roles in the process of work. The practice account does not teach this, since here you can trade without overcoming yourself.

A demo account will be useful only in some cases. It cannot be considered a full-fledged trading school.

A demo account will allow you to master the important elements of the profession, but trading on a real account implies its own nuances.

Successful trading on a demo account does not guarantee success in real trading with real money

When trading on a practice account, a trader receives a lot of important information. This is beneficial, but does not help in the development of practical skills, in psychological stability. In real trading work, decisions have to be made under strong psychological pressure. Under these conditions, it is necessary to objectively evaluate many factors that can significantly affect the prospects for profit. No strategy can give a full guarantee for the successful outcome of the transaction. In fact, a person is dealing with a complex ratio of the probabilities of success and failure. Making the right decisions is the only way a trader can ensure sustainable trading profitability over a long period.
When working on a demo account, a different approach is implemented, in which he will not lose anything in any outcome of the transaction. In this case, he can focus his attention on the theoretical aspects of decision making. By switching to a real account, he will feel a strong difference due to the fact that he will have to lose money and feel uncertainty regardless of the choice he makes. Perception and thinking will be completely different. In fact, on a demo account, a trader will acquire certain skills that will not help him much in real trading. As a result, he will have to retrain, paying for it with unsuccessful deals. Of course, working on a practice account in itself can be useful, but at the same time it will help only in certain issues. In order to acquire knowledge and skills that will help to develop in real conditions, a simulator can help you start trading with less risk, gradually reducing it with the right approach. An example is cent accounts or those where a trader risks a relatively acceptable amount for his financial condition. There are also other options for reducing possible losses, among which we can mention the service of copying trades. Learning to trade on the exchange is a complex and lengthy activity, where, among other methods, the use of a demo account can be useful. However, it must be remembered that it is only a small part of the process of professional development of a trader. where the trader risks a relatively acceptable amount for his financial condition. There are also other options for reducing possible losses, among which we can mention the service of copying trades. Learning to trade on the exchange is a complex and lengthy activity, where, among other methods, the use of a demo account can be useful. However, it must be remembered that it is only a small part of the process of professional development of a trader. where the trader risks a relatively acceptable amount for his financial condition. There are also other options for reducing possible losses, among which we can mention the service of copying trades. Learning to trade on the exchange is a complex and lengthy activity, where, among other methods, the use of a demo account can be useful. However, it must be remembered that it is only a small part of the process of professional development of a trader.