IQ Option demo and real trading accounts Know the differences

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Demo vs. Real Trading: What to Know Before Making the Switch

New traders tend to start their trading journey with a demo account. It makes sense — using a demo account is a convenient and practical way to learn the basics of trading. In fact, it is often recommended that traders’ transition to a real account only after they have realized consistent results on demo.

Here’s where things get a bit tricky. Once traders have consistently made winning trades, they expect the same results will be easily replicated on their real account. Not only are these expectations unrealistic, but they will also set you up for failure.

Before making the switch from practice to real trading, it is imperative to understand what makes these accounts different from one another. Taking these points into consideration and planning ahead will better prepare you for the shift into a real account.

Know the risks of trading

There is no real monetary risk when trading demo. Losing streaks on a demo account are not as devastating or discouraging because you have the comfort of knowing you can replenish your account with more funds whenever you wish to do so.

Trading on a live account is a completely different story. Since you are investing your hard-earned money, losses are going to hit much harder. This, in turn, can negatively impact your trading confidence and lead to irrational decisions. Accept that losses are a part of trading and plan for them accordingly.

Understand the psychological difference

The bottom line is that trading on a real account evokes a rollercoaster of emotions, especially when first transitioning from demo trading. You’re bound to feel a rush of adrenaline, excitement, and nervousness throughout your first couple of trades. Intensified feelings of frustration or anger may also make an appearance.

The key here is to try and keep your emotions under control. If a strategy you used on your demo account isn’t quite working the same way on your real account, don’t be afraid to cut your losses and adjust your plan. Stubbornly attempting to replicate your demo results may give way to poor habits like revenge trading.

Expect changing market conditions

Market conditions change in the blink of an eye. A number of new traders may not be equipped to handle volatility, while others may find it difficult to trade in a slow or sideways market.

Before taking the leap into real trading, make sure you have a plan for all types of market conditions. Rather than trading large positions, start off with smaller amounts. Only trade what you feel comfortable losing. You can increase your positions after achieving consistent gains and having more experience under your belt.

Now that you know the difference between demo and live trading, are you ready to make the switch?

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NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.

GENERAL RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
87% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Is there a difference between IQ Option demo and real account?

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Yes the demo account allows you to win.

The real account lets you lose real money non stop until you realise you have been scammed.

Get real, how can you win at a game where you are betting more than your expected payout.

Simple maths will ensure you lose.

The demo account is rigged.

The real account is not rigged as they do not need to bother, you are destined to lose.

IQ Option demo and real trading accounts: Know the differences

If you’re a new trader, you should start with a IQ Option demonstration account. Also known as the ‘demo account’, this type of account allows beginners to try and test trades without risking their money. Experienced traders recommend that traders should on shift to the use of real-money account only after they have realized successful and consistent results using the demo platform.

However, one must temper his expectations when shifting to the real-money account. Your success rates in the free demo platform don’t automatically go to the real-money account. These are unrealistic expectations and this thinking may only pave the way for more disappointments.

As a trader, you should know the difference between the two platforms. By understanding the difference between the two, you can confidently shift from one platform to the next.

Risks are constant

The demo account is fun and educational to use since no money is involved. If you lose your trades online, you can learn from it without worrying about the bankroll. You have the option to replenish the account if you wish to continue trading using the platform.

You can top up your IQ Option demo account whenever you want. So the trading here is not time-limited.

But trading It’s a totally different thing with real money. Since you’re using your own money, losing trades can be emotionally and financially draining. Losses can also impact your confidence and can lead you to irrational trading decisions. As a responsible trader, you should acknowledge the importance of risks in trading.

Demo and real money account requirements varying psychological preparations.

When you trade real money, you’ll experience a wide range of emotions. There’s excitement, some apprehension, and a rush of adrenaline if you’re about to hit a winning trade. There’s frustration and anger too if trades don’t go your way.

If you want to take trading seriously, you’ll need to properly manage your emotions. If your tested strategies in the demo account are no longer working, just cut your loses and adjust accordingly. Don’t try to be eager to replicate a strategy that’s no longer working in your real – money account.

Markets are dynamic

As an informed trader, you should know that the market conditions are fluid. Before you jump into real-money spending, make sure you know how to handle volatility. You should always prepare for changing market conditions and know that the trends may not always fall according to what you have planned.

If you’re a beginner, you can start with smaller investments. Invest an amount you are willing to lose. Once you have achieved consistent gains, then that’s the time you can boost your investment. Remember all these tips before you make that switch.

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Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
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    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

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