The difference between demo forex and live trading

Forex forex broker rebate program generally divided forexrebatebestto two server groups, DEMO forexbrokerrebateprogram LIVE, LIVE is the live operation, while DEMO is the cashback forex board often have traders in the simulation will do very well, until the live operation but will lose money, so why is this?　　Forex demo autorebateforex: Forex demo trading is the use of forex trading software demo account for risk-free forex trading because they are trading with demo currency, so there is no loss or profit for traders The difference between Forex demo and live trading: So what is the difference between Forex demo and live trading? We answer this question from two angles, one is from the perspective of the platform, and another is from the perspective of the specific trading platform perspective 1. server different general platform server is divided into: DEMO (simulation server) REAL (real disk server) MT4 platform simulation server DEMO, real disk server LIVE 2. spread different some platform simulation disk in the real disk spread Not the same, depending on the specific platform, most of the spreads on the real disk in the simulation is the same (generally no commission is added to the simulation disk) 3, the data transfer speed is different data transfer, the general simulation platform data transfer will be relatively slow, but the difference is not depending on the specific platform 4, the biggest difference in: simulation account inside the funds are fake specific trading perspective 1. The essence of trading is to trade human nature, so EA is very popular from this point of view, the demo tray because it is not the traders own funds, but virtual coins, so it is very bold, even if the loss will not hurt; while in the real market, traders are relatively very cautious, do not dare to easily bet, once the loss, it will produce chagrin, remorse, thus affecting their investment behavior 2. If you hang a single trade, it will not be shown in the buy and sell gear, because your money is virtual, and did not participate in the market to play, so your money will not have any impact on the market, on the contrary, if you hang a single in the real market, your real money to participate in the market game, may be because of the counterparty or long-short situation conversion, the original trend is likely to be reversed because of your money (this is only theoretical) Theoretical) Advantages and disadvantages of demo trading Advantages: 1. For newcomers who do not understand the forex trading platform, the use of forex demo accounts can help novice forex investors quickly understand forex trading, familiar with the process of forex trading, find a suitable platform for themselves 2. And for traders who have been trading for a period of time, you can experience many days of market conditions in a day, you can demo account The disadvantages: 1. Neglecting capital management, blind arrogance Forex demo accounts usually have a principal amount of $100,000 to $200,000 In the face of such a large amount of fake currency, novice traders tend to neglect capital management, too high initial trading capital to a large extent But the reality is that many investors open real accounts with micro or mini accounts of a few hundred dollars and once large and heavy positions become a habit it is difficult to correct. However, traders do not always comply with the plan they find a little movement in the market, and immediately react accordingly, and no longer in accordance with the trading plan to perform in the demo account, they have no real rewards or penalties whether they comply with the trading plan How to trade on a demo account?　　The biggest difference between a live account and a demo account lies in the capital, although $100,000 is just for fun for some tycoons, but most investors start trading with a deposit of a few hundred to a few thousand dollars, but for For the average trader, the amount is best and the amount of money planned to open a real account in the future to have a more realistic trading environment 2. For most newcomers, heavy positions often mean burst positions), avoid the more frequent changes in the exchange rate (for newcomers, due to inexperience, encounter the market fluctuations like non-farm payrolls, very impulsive and thus loss, and such a market is not suitable for investors to summarize the volatility of the foreign exchange market trends) strict self-discipline if you have a trading plan, strictly in accordance with the plan, when trading foreign exchange, strict self-discipline for most people are 3 Summary of their own trading Demo trading is the best place to get to know forex trading, familiar with trading, and can summarize some trading skills in the demo trading (but these skills may only apply to the demo trading), to find their own suitable Profitable operation is the model for you to build your own trading system later