Why are you rocking in forex demo trading but sucking in live trading

Many new merchants who work quite well on demo accounts open live accounts directly and things start to fall apart. Real money on the line is very different emotionally than investment money.

Every pipe is a feeling of frustration or genuine joy at losing in a live account. Because of these emotions, traders may decide to trade differently than they did in the live account when trading in the demo account. This usually leads to further declining business. But live trading and making the same decision is the key to your success as a trader when no money is at risk.

No matter how hard you try, you can’t get to the next level of trading until you learn real money risk. That’s what trading is all about. The key is to open a live account and start slowly.

In our power course, where we teach people about business, we advise new traders to start a business with only one mini lot at a time. Keep your risk small in the beginning until you feel good about the decisions you are making.

Trading in a demo will not help you practice it; You can only learn how to deal with it using real money. But that doesn’t mean you have to take a lot of risks to prove something to someone. You’re just moving on to the next level of business. Take your time, the more practice you do live trading, the better chances for you to become a profitable trader.

What’s slippery?

You bought the EUR / USD at 1.4000 and the market is now trading at 1.4025. Since an economic release expires in 15 minutes, you have moved your defensive stop to 1.4000 to protect your winning trade from becoming a losing trade. The number is released and the market drops below 1.3975 in a few seconds through your stop level. But instead of filling in your 1.4000 price, you are filling in 1.3990 and now you have a losing trade in your hands. Why?

The answer is that no one was willing to take the other side of the trade at your price. A trade is when two people agree on a price but not on a standard. One thinks that the value is too high and the market has to go down and the other thinks that the value is too low and the market has to go up. When a large economic number is published, the volume dries up when most big traders stand aside. They will not trade if they cannot identify their risk. So you won’t get as much volume as you would see in a normal market environment.

However, there are still plenty of traders trying to take advantage of the instability as they will all want to trade in the direction that the market should take based on the published numbers. So if everyone thinks the market has gone down, all these traders will try to sell at the same time. The problem is that many traders are not buying as soon as the market starts to decline. So the market continues until buyers take action and start moving to the other side of the business. But they are buying at their price, not yours. In the example above, the sale stop order becomes the market order when the name is printed at the set price. So when the market drops to your stop level of 1.4000, your order becomes a market order. Match with someone you’re buying when you’re selling in the market. If they only bought below your closing price you would fill in that level. It is called slippage and it is present in every market in the world. So if you are trading in a volatile market environment, you need to be prepared to slip. This is the nature of the game.