Hi guys!
Can you name me some advantages and disadvantages of demo accounts?
I completely agree with you, actually demo is like the trading laboratory. We can test here any kind of trading strategy before implementing it in real trading world. But if traders won’t take demo seriously then surely it will hamper their psychology while trading on live account.Demo account is important for learning technical aspects of trading. Most new traders take a huge capital in demo account and open random trades. By doing this they hamper their trading psychology. Demo should be used to experiment different strategies. Demo is the trading laboratory.
Yes newbie traders tend to underscore risks associated with trading, because they tend to overestimate their chances of winning. That's why psychological state is important when you consider switching from demo to live account.Traders would hamper all aspects of their development if they don't take demo trading seriously, in my opinion. One can only learn if they trade on a demo account exactly as they would trade on a live account.