Demo / Paper Trading VS. LIVE Trading – Is There A Difference?
Of course there’s a difference when it comes to demo / paper / simulated trading and live trading. What is it? Well apart from the psychological differences you’ll experience, it’s the technical differences as well!
For starters, demo trading accounts are delayed. If not by 15 minutes, by a few seconds, and those few seconds could mean the difference between a profitable trading and a losing trade – or a break even trade and a profitable trade. It doesn’t sound like a lot, but 8 seconds can mean A LOT when it comes to day trading.
Is paper trading bad or inacurate?
No, it’s not bad at all, in fact, I would suggest paper trading before you fund your live account. Is it inaccurate? Yes, it can be very misguiding when it comes to your profitability. Paper accounts are more profit friendly. You’ll find yourself making 10’s of thousands of dollars per month or per week in a paper account and you’ll find yourself losing hundreds if not thousands on a live funded account if you just jump from a demo account to a live account with the same expectations.
I’ll go over how to scale up and how to gain comfort with a live account in another blog post / video.
Watch the video above for more info!