Many traders who started to trade on IronTrade with a demo account complain that trading on a real account is different. They gained a lot of money on a demo but struggled to make even half of it with real money. This article will explain why it is so and why real and demo quotations are the same.

Basic differences:

1. IronTrade demo account is free

It is easier to ignore losses when you trade with free money and pay attention only to your profits. You can refill your demo account on IronTrade as many times as you want and neglect your mistakes. However, when you trade with real money, even one mistake that ruins all your deposits can eventually lead you to getting really angry. It is much easier to feel than to explain. Next time, when you trade on a demo, try to imagine that it is your real money and treat them accordingly.

That’s actually the only difference between accounts: demo and real money. The charts are identical, indicators work in the same manner, and even the assets are the same. The odds of winning or losing are also the same. So, it is only your attitude to the money that makes a difference.

2. Higher balance amounts

Usually, when you trade on a demo account, you do not limit yourself and set maximum investments (hundreds or thousands of dollars). When your stakes are big, the returns are also significant, which brings you more satisfaction and a sense of accomplishment even if the money is not real. In other words, you receive pleasure from simulation as well.

Try to invest small amounts when you try trading on a demo next time and log all the profits that you will have. It will give you reader-friendly figures reflecting your actual result. You will understand how much funds you spend and how much do you earn.

3. Real money arise emotions

Do you remember what did you feel when you traded on a demo account last time? I doubt that it was fear. When you trade with demo funds, you do not fear because there is nothing scary about losing virtual money. When it comes to real money that you earn by yourself, every trade is associated with uncertainty. We can observe a mix of emotions: loss aversion, greed, and desire to make more money. Real account doesn’t do second chances. If you make a mistake, you lose your money.

That’s it. There are numerous articles about controlling your emotions, dealing with irrational behavior, risk management, etc. Take a look if you did not do this already. It will definitely take some of the pressure off and help you to concentrate better.

Conclusion

The main difference between trading on real and demo accounts is your approach. Usually, you do not pay much attention to it, but it plays a significant role in the outcome. Try to trade rationally and analyze the results if you still have some doubts about their equivalent nature. Feel free to share your emotions after trading on demo and real accounts with IronTrade. Take care! We are always happy to hear from you.