virtual accounts versus real accounts

foroom lluzers

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UCLA neurophysicists have found that space-mapping neurons in the brain react differently to virtual reality than they do to real-world environments. Their findings could be significant for people who use virtual reality for gaming, military, commercial, scientific or other purposes.

“The pattern of activity in a brain region involved in spatial learning in the virtual world is completely different than when it processes activity in the real world,” “The neural pattern in virtual reality is substantially different from the activity pattern in the real world. We need to fully understand how virtual reality affects the brain.”

To read whole article search on google for "Brain’s reaction new research by UCLA neuroscientists"

Most (if not all) new traders can not replicate demo results on live accounts ,when trading a demo account , your subconcious brain knows there is no money to lose ,it does not matter if the demo money is lost ,no stress or emotions are involved.Just search hard and very hard on google for failures of demo to live accounts , the extensive searches will provide unbelieveable results.

The switch to live account involves fear of loss of real money and an overreactive amygdala (your emotional brain) , it also involves the stress response and hippopocampus shut down leading to mistakes .The command centre in the brain is shut down ,so the beginner trader's early technical trading systems gets blocked by the hippocampus shutdown of the brain.The emotional and stress responses take over after the shutdown.This is how the trader now performs under trading phsychosis dealing with the uncertainty , the brain reverts to subconcious instinctive reponses to trading , in his immediate surroundings.

On live accounts be ready for real losses with real money , be ready for reality , be ready for all different emotions and stress responses , discover on live accounts you are your own worst enemy in trading.

http://www.trade2win.com/boards/edu...n-wasnt-built-handle-reality.html#post2890808

Some demo accounts always give fills and others don't have spreads , so you make loads of profits on demo , this is broker's free lunch profits for new traders.This is broker's marketing ploy to suck suckers into trading , until on real live acounts ,the spreads eat your profits into losses on real accounts.


Just test your demo and live for months.
 
The same reasoning that dismisses demo trading would also dismiss the need for military doing excersies, soldiers doing combat training - its better than just giving them a gun and sending them into battle:



Airline pilots also refresh their skills by doing simulator training:
http://www.virtualaviation.co.uk/refresher/

I don't see a problem using a demo account providing real trading is also done. If I hit my target doing real trading within 10 minutes there is often still the urge to carry on trading. Switching to demo for another 30 minutes is useful for the practise. :rolleyes:
 
A demo account should only be used for getting comfortable pushing the buttons and understanding the basic principles of trading, but I do think it is important to stay at the simulator until you show some profits for at least 1 week if you daytrade. An exception to the rule is when backtesting or trading automated strategies where you need more time to get real-time backtesting results. Lots of traders don't do demo, they open a live account and because they might have a nice deposit, they feel compeled to trading lots much bigger than what they are supposed to start. The right path is: demo->live with 100 shares>live with 200 shares and so on.
 
The same reasoning that dismisses demo trading would also dismiss the need for military doing excersies, soldiers doing combat training - its better than just giving them a gun and sending them into battle:



Airline pilots also refresh their skills by doing simulator training:
http://www.virtualaviation.co.uk/refresher/

I don't see a problem using a demo account providing real trading is also done. If I hit my target doing real trading within 10 minutes there is often still the urge to carry on trading. Switching to demo for another 30 minutes is useful for the practise. :rolleyes:

There are two different types of training being practiced between soldiers in combat training/pilots and traders .The traders are only practicing attacking strategies taught by their leaders , the pilots/solders are practicing how to stay safe , how to land the plane safely , how to get avoid getting killed in combat.


How many traders are practicing "how not to lose?"
 
pilots also train for pilot fatigue.Do traders trade demo for fatigue ?Some traders sit infront of screens for 14 hours waiting for illusive trends , exhausted by expending considerable mental energy , and trading is a mental game.

 
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