When you first start trading, all experts recommend that you should go for a demo account. The reason for this lies in the fact that such an account does not really exist and does not use your real money. It simply simulates what you would see if you had a live trading account instead. It’s perfect for beginners who only want to learn the basics of trading and practice without the risk of losing money in the process. It’s truly one of the best things that you can do when you are only starting this journey.
However, it’s interesting to note that the psychology behind a demo account and live trading account is different and most people “make money” a lot easier when they’re not really making money, meaning on a demo account. Why is that? Because the certainty that you won’t lose money makes you risk more and, sometimes, win more. Here are more details about the fascinating difference.
Losing real money changes everything
When switching from a demo account where they made money to a live trading account, many traders forget that they made this switch and that there is real money on the line now. This makes them risk as they did before and lose almost instantly. But there is a secret thanks to which you can avoid doing that. The key here is to treat your live trading account like a demo account and only focus on the trades and knowledge instead of the money. Once you manage to do that, your career will start improving.
Moreover, the amount of emotions you feel when putting money on the line is directly proportional to the sum you are willing to risk. The bigger the sum, the higher the feelings. That’s the moment when you realize that you’re now trading live and not on a demo account. However, you can control that by only risking small amounts of money at a time. This will help you maintain your balance and focus, especially in the beginning.
So, a demo account is certainly extremely valuable because it teaches you how to trade without involving yourself in any risks. It’s the best solution if you don’t have large sums of money to put on the line right from the get-go but still want to acquire some basic trading skills.
You can also do this on Atmo360, an online broker that aims to help its clients and who does anything to impress and support them. Their whole perspective and offer are diverse, fascinating, and it certainly offers customers a variety of things to work with. Customers are able to trade CFDs on Forex, stocks, commodities, crypto, and more than 200 other assets, all by simply signing up on their platform. The trading app is completely free of charge and allows traders and investors to always be one step ahead of the game and never miss a good opportunity. With more than 1,000 downloads per day, this trading app is actually one of the most popular at the moment in this branch. Atmo360 also offers demo accounts for customers who want to learn how to trade by actually doing it, without the risk of losing capital.