Generally, many of us in the forex industry start trading using demo accounts. This is a great step for you to familiarize yourself with the use of trading platforms either meta trader 4 (MT4) or other platforms. Newbie is advised to explore all the tools that can be used in MT4 to facilitate the trading process in the future.
But many of us use demo accounts in the wrong way which causes the real purpose of the demo account to not be used effectively. Before we unravel how to use MT4 properly and effectively, here are two reasons why demo accounts can kill you!
No Emotions
As a newbie in this industry, you do need to use a demo account to train yourself on how to use it, and go to the next level to test your technique whether it can generate profit or not.
The problem is, it does not involve your emotions in the trading process, and even worse due to the absence of emotions, traders easily take this demo account with a careless entry. Being careless here means, not making the proper analysis before entering the position.
This is exacerbated when your demo account makes so much profit without a proper analysis process. You, on the other hand, start gaining confidence after practicing the demo for a month and continue to deposit money into a real account. Due to the absence of emotions and the previous misuse of risk, you continue to lose and lose in real accounts until you incur huge losses.
You Do Not Understand Yourself
Due to the absence of emotions earlier, you actually do not understand yourself. Keep in mind that not all traders in this industry are the same in terms of trading. The author once felt so confident in the past without understanding himself, and because of this, the original purpose in trading could not be achieved.
You need to know, traders consist of scalper, intraday, and swing. Not necessarily we can be in all three categories. There are people who are suitable for scalping and not necessarily he is suitable for intraday or swing.
