Join A Binary Options Traders CommunityNew traders are often eager to get their feet wet and start making real money. And why shouldn’t they be? But if you start out by trading with real money instead of with a demo account, odds are you are going to find yourself with a lot less money more quickly than you can imagine. And you’ll end up experiencing a crash course in trader psychology. But you don’t have to learn the hard way—by crashing and burning. If you are willing to take some time to demo test, you will probably actually starting making real money sooner than you think! Sometimes new traders think that demo trading is for sissies, or that it isn’t a realistic projection of what real trading is like, but these are often used as excuses to justify impatience.

Here are my responses to three common excuses which traders give to get out of the demo testing phase.

1.“There is no risk with demo trading, so it isn’t a realistic assessment of what real trading is like.”

This couldn’t be further from the truth. It’s true that there is no risk in terms of bankroll, and that is very much the point of doing it in the first place. You do not have to lose a dime demo testing binary options. But there is still risk. Risk is present in the form of trades you could lose instead of win. It is present psychologically; there is a risk to your self-esteem if you should fail at demo testing. Failure in this case however is merely the absence of success, whereas with “real” money trading, failure takes on a whole new dimension of meaning. It can even add up to financial ruin. Wouldn’t you rather just be facing the absence of success?

http://www.binaryoptionsblacklist.com/tips/5-self-help-steps-for-binary-options-loss-recovery/ guides you through the inevitable losses

It can be easy to become discouraged when you are losing your demo trades, because you may think, “Wow, if I can’t even win a demo trade, how am I ever supposed to become profitable with real money on the line?” This self-esteem problem is not something which is justified; you are learning, and if you are doing it via demo, then you are doing it the right way, and that should give you confidence. At least it shows that you are being patient and responsible. Self-esteem issues can be crippling to a trader, just as much as conceit can. You will want to learn how to deal with the risk to your self-confidence without real money on the line. That way you have one less surprise to deal with when you go live.

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2.“There is no emotional component to demo trading. There’s no real money, so I won’t feel involved with my trading.”

If you have not demo tested yet, you may be surprised to find out just how emotional an experience it can be. You may find yourself trading emotionally even though real money isn’t on the line. Why? Because you know that those virtual numbers in your account are placeholders for what could, feasibly, be real money someday—or otherwise, if you blow it all. You may even discover you have a tendency to make trading decisions that counteract your trading method because you don’t want to lose your profits. You may find out you are risk averse, or that you get greedy.

You can draw attention to these emotions even more easily if you are willing to publicly post your demo test trades. Sharing your performance (or lack of performance) can help put you in touch with your emotions even more directly. It gives you accountability, which can help you stay honest. Here are more tips on dealing with your emotions while you are trading.

Ideally, you should be treating demo testing as a step in your education as a binary options trader which is actually a prerequisite for trading live. If you can, choose a broker that gives you an unlimited demo account. Otherwise, consider opening multiple demo accounts, back to back, and using them up through their trial periods (many sites only ask for an email address, so if you have several, this isn’t difficult to do). Only if you manage to demo test successfully for a significant number of trades in a row should you consider trading live with your real money.

You can bet this decision will get your emotions involved in your demo testing fast! The pressure will come in the form of progress: If you do well, you get to start trading real money, and if you don’t, you have to keep testing. This links up your demo testing process directly with “real” trading, without putting your money on the line yet. So there are real consequences for performing well or poorly. The sooner you complete the demo phase, the sooner you get to press on to trading with your own cash.

3.“Demo testing will take too long. I don’t have the time.”

This is the worst excuse of all, and all it points toward is extreme impatience. And yet, it is probably the most common excuse in the long run. “I need money fast, and if I don’t start trading live now, I will never get to be a millionaire.” Or, “I want to quit my day job already. I can’t stand doing this any longer. I need to start trading so I can get on with my life.” Or even, “I’m getting older by the day. I can’t wait any longer.”

This attitude, whether blatant or subtle, will undermine everything you are trying to do. It is usually the motivation which is underlying the other two excuses listed above. Impatience with trading leads to nothing but loss and failure. If you do not take the time to learn and test, you are diving in blind. Even if you had a 50/50 chance of winning all your trades, you’d still lose money, because the difference between the payouts on winning trades and the out-of-money rewards on binary options traders add up in favor of your broker, and not you. If you leave your trading up to chance, you are going to lose.

So take some time to learn how to trade, and to learn the art of patience. Your trading method is one ingredient in binary options success, and the other ingredient is you and your psychology. Demo trading does involve risk, it does challenge your emotions, and it does not take “too long.” Every time you lose money making bad trades, that is money you have to make back before you can profit. That takes even longer than learning how to do it right in the first place!

Need more proof that demo trading is beneficial? Check the links below: