The difference in performance between a **demo account** and a **real account** in trading is a common phenomenon and has several psychological and technical explanations. Here are the main reasons:

### 1. **Psychological factors (the biggest problem)**

- **Lack of emotional pressure in the demo**: In a demo account, you trade with virtual money, which eliminates fear, anxiety, and greed. In a real account, emotions (such as panic when seeing losses or euphoria from gains) lead to mistakes like closing trades too early or risking too much.

- **Confirmation bias**: In the demo, you may have been lucky in some trades and attributed it to your strategy when in reality it was a result of chance.

- **Overconfidence**: When winning in the demo, some traders underestimate the risks and increase the size of their positions in the real account, which amplifies losses.

### 2. **Differences in order execution**

- **Slippage and variable spreads**: In real accounts, especially with low-quality brokers, the spread (difference between buy/sell) can be greater than in the demo, or there may be **slippage** (execution at a worse price than expected).

- **Order filling**: Some brokers provide better conditions in the demo (instant execution) but in the real account, there are rejections or delays, especially in volatile markets.

### 3. **Capital and risk management**

- **Position size**: In the demo, you usually trade with a high fictitious capital and take risks that you would not take in a real account (for example, risking 50% of the balance in a trade).

- **Account size psychology**: If in the demo you had $50,000 virtual and in the real $1,000, the impact of each loss feels much greater.

### 4. **Market conditions**

- **Changing environment**: You may have practiced in the demo in a market with a clear trend, but when moving to real, the market entered a sideways or volatile phase, where your strategy does not work the same.

### **How to solve it?**

1. **Treat the demo as if it were real**: Use the same capital you have in your real account and trade with the same psychology.

2. **Start with small amounts**: When moving to the real account, trade with the minimum possible risk until you adapt.

3. **Keep a trading journal**: Write down your trades, emotions, and mistakes to identify patterns.

4. **Choose a regulated broker**: Make sure that the execution conditions are similar in demo and real.

5. **Focus on risk management**: Never risk more than 1-2% of your capital per trade.

### Conclusion

The problem is not the strategy itself, but the **psychology and real market conditions**. Trading is 80% mental and 20% technical. If you were winning in the demo, it is possible that with discipline and risk management you can transfer it to the real account, but it requires time and emotional control.

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