Have you noticed that numerous traders perform magically in the demo session? Despite having no practice or prior experience, they excel at everything. From predicting the price to planning an effective technique all seems to be working perfectly. As people begin to get envious, the performance skyrocketed in no time. However, this is not the end of the story. Soon when this same group shifts into live trading, the result begins to fall drastically. Instead of showing their magic, they struggle to make the right decisions. Everything starts to fall apart as if the past performance was decades ago. The scenario that we have mentioned is not imaginary. Millions of investors go through this same phase every year. It is a matter of pity that seldom professionals notice this phenomenon. However, this material will discuss this particular aspect.
This post will explain why traders fail to replicate demo performance after the transition. This is significant because a person cannot spend the entire career practicing. At one point in time, he needs to step into the real world. If he is not prepared, this might cost him dearly with his life.
Never take it seriously, thus not incorporating emotions
This is the first obstacle that prevents traders from accomplishing goals. Although they try hard, this mentality refrains them. When a person is managing a virtual fund he is well aware that any result is not practically productive. For example, consider making a 100 dollars profit with a week. This is a substantial figure yet this has no implications in the live account. The money will not be added to the actual investment. This lack of seriousness drains out the emotions and traders begin to act like robots. Whether they like it or not, this increases the skills exponentially. When investors ditch sentiment, they focus on information that derives a logical conclusion. This assists them to accomplish their objectives even if it seems hard.
However, this emotion gets a burst in live performance. All the anxieties strike, the pressure of keeping the capital intact, peer’s expectations, and others make them insane. They lose focus and make emotional decisions. Earlier a trader happily accepted failure but that was with the virtual fund. As capital is at stake, he loses mind over trivial matters. This gradually effects and after a certain period investors quit. Always manage emotions whiner you are. This is essential in every aspect of life as well as in a professional career. If everything seems very complex, you can open take an online Forex trading course and learn from the experts. If necessary, seek guidance from the top traders at Saxo and they will be able to give you powerful insight about the market. Use the internet to source the vital information about the market so that you can take better trades.
There is another big enemy of traders. It is the greed that pushes them to take perilous decisions. Instead of closing order at the expected position, they keep the trades open. The primary motive is to generate as much profit as possible. It appears logical when the overall circumstance is considered to them. Still, experts say it is detrimental to a career. Once a person grows this habit, he is distracted from goals. Every time he tries to push the boundary and ended up losing more capital than expected. Rarely does he succeed but the dangers are not worth it. This habit only kicks in with live funds, not when you are playing with virtually millions of dollars.
From this brief discussion, it is not possible to get all the ideas. This article only focuses on the zest but we hope enthusiasts will understand and treat demo trading as real performance. A little seriousness in this aspect can elevate the skills to the next level.