Demo accounts have one purpose only and that's, to show you how the Forex trading platform works but they are no real use in telling you if you will make money in real time trading. Most traders who win in an FX demo account fail miserably in real time trading and we will look at why in this article.

The reason 95% of all currency traders fail to make money is the bulk of traders simply can't cope with the pressure of trading real money. When you trade in a demo account, you have nothing top lose when you trade for real, you can lose money and that's emotional – there is no pressure on you and a simple comparison will explain this more clearly.

The Pressure of Real time Trading

A footballer can take penalties in practice and score easily but if he taking a penalty in front of a 100,000 people, a TV audience of millions and his team either win or lose on the outcome, he feels very different as he steps up to take the penalty!

We all feel different under pressure and most traders simply cannot cope with the pressure of Forex trading and this means the ratio of winners to losers has always remained the same at a whopping 95%. So why is Forex trading so hard? Let's take a look.

• You are going to be wrong for long periods of time and feel stupid as you get stopped out

• Traders simply hate getting stopped out and admitting their wrong, so they run losses, over ride trading signals to gain revenge on the market or finally, they chop and change trading systems

• Most traders lose because they totally lack discipline and if you don't have the discipline to follow a system – you simply don't have one.

In addition, depending on the system you are using fills will tend to be better in Demo trading and you will see better spreads.

Virtual trading via a demo account, can help you get used to the trading platform but as an indication of whether you will become a successful FX trader, they will give you no real indication at all.

“Seeing is believing but feeling is the truth”

If you understand the above quote, you will understand why you shouldn't put to much emphasis on your performance in a demo account, in terms of what you will make in real time trading.