I opened a practice account on Trading 212 (stock trading) and tripled my money within the first week. Why was it so easy? What is the difference between a real money account and a fake money account?There are significant differences between real money and play money trades:1. Your play money trades don't move the market - You can spend your play money on buying thousands of shares of a stock, and the price won't move. In the real world, large orders move the market. 2. You aren't paying fees - You're not paying trading fees, margin fees, anything like that. Those eat into your profits. 3. There is no emotional risk - Your imaginary money is just numbers on the screen. You won't go hungry if you get it wrong, you don't need the money to pay your rent or mortgage. You can just go all-in and if you lose, oh well.4. A week is nothing - The less money you start with, the easier it is to make it grow. Likewise, you can make good picks one week and have huge gains, only to lose them all next week. Beating the market over any long time frame is very difficult, but you can have a great week or month easily.
The ultimate test is to do it for real. Deposit $500, $1000, $10,000 - whatever amount you are comfortable with and see if you can get the same results. You might be the next superstar hedge fund genius, but you probably just were lucky over a small sample.You call that easy? That's nothing. I once played a virtual roulette wheel and doubled my money in 3 minutes! (And for the same reason: I got lucky.)
You can't expect those types of returns over the
long haul. They're not just hard or rare to achieve consistently. I'm not being a Debbie Downer. It just can't be done.
Starting with a mere $10, tripling your money every week for about six months would leave you with all of the money. All of everybody's money.
Everybody. In the whole world. All yours.You are confusing luck with skill. If you are trading real money, prices are determined at the time of the trade. You might have used different buy and sell prices.Either way, see what your account has done over a month or two. Where skill comes in over luck is to get positive returns over long periods of time. Luck lets you beat the market short term, but the market tends to win long term.
And as other responders stated, real money has a different feel and generates a different decision mindset. Since you tripled your money, what would you do if your positions suddenly lost half its value? Also, gains aren't real until you put them in your pocket.It felt easy because you were lucky and got it at a pretty good time and watched your investment carefully. The challenge comes when you need to consistently need to deliver growth over a longer period of time and with larger amounts of money.
Another factor is psychological. By using fake money, there is virtually no perceive risk. This means you were willing to execute risky transactions that potentially yields greater returns. With real money, you may not be willing to perform at the same level of risk.