In the forex world, there is a consensus that if you wish to become a trader, using a demo account is a waste of your time. The only way to gain the experience and skill you need to become a trader is a live account. The reason is that when you lean to trade forex using a demo account, you remove the pressure, which is an essential part of forex trading. Thus, you will not lean to trade forex since the pressure of making important decisions with little time left is an acquired skill.
Lack of Preparedness for High Pressure of Live Trading
When you finally get funded account, you will find that you were not prepared for the pressure of live trading. As a result, you make bad decisions due to lack of control over emotions. In fact, you might end up backing out of forex trading with a belief that it was not meant for you. Besides that, you might end up losing a lot of money due to emotional trading.
There are No Consequences to Demo Trading
When you get funded account, there are real consequences if you lose the money. For one, you might not have enough finances to cover your rent, feed your family, or cater to your needs. Thus, you will never feel the pinch that forces you to push past your limits and become the best. It will not teach you how to take responsibility for slipups that you make. As such, you will find it hard to grow into a leading trader.
There Are No Emotions in Demo Accounts
One important aspect you have to control when you receive funding for traders is the psychological aspect of things. Maybe you had an argument with someone or things did not go your way the previous day. If you cannot learn how to keep emotions in check, growth will be limited for you. With a live account, you learn how emotions affect you and with time, you begin to control them and keep them in check. Even when you go through a losing streak with a demo account, you will never experience the full range of emotions that come with live accounts.
Demo Trading has an Element of Gambling
A demo trading makes it easy for you to fall prey to gambling once you get funding for traders. For instance, if you are using a demo account, you will be tempted to keep adding to losses just to see if it is possible to use luck to win. With enough time, this will of course turn into wins. However, the damage is done. Real trading can only take place after careful analysis and consideration. Such a mentality will be carried over to a live account with disastrous consequences.
These are just some of the reasons why our prop trading firm London believes in live trading from the first day. Before you begin to trade with our prop trading firm London, you will have gotten enough mentoring and lessons. When you start your live account, you will continue to get help. It ensures you never pick up bad habits along the way.