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Published On: Jun 26, 2024
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Switching from Demo Trading to Real Trading: Essential Tips for Success

Switching from Demo Trading to Real Trading


By switching from a demo trading account to a live crypto trading account, traders may put their newly learned knowledge and abilities to use in actual market circumstances. When traders believe they have established a strong trading strategy, are capable of managing risk, and are emotionally ready for the demands of live trading, the shift may be beneficial.

Switching from Demo Trading to Real Trading

The Psychological Shift

Could you tell me if your heart raced when you made your first real money trade? Perhaps you got a full-body sweat? Since real money is now at stake when traders move from demo to real money crypto trading, these occurrences are frequent. It's common to feel a bit anxious on your first real-money deal, but if you're ready for the psychological struggle that comes with crypto trading, you should have known before you ever trade with real money that there is a real risk of losing money. Because of this alone, the majority of traders ought to limit their risk to what they can afford to lose on each trade.

Capital Management

Capital Management

Since risk management can help traders limit possible losses and enhance profits, it is an important component of trading that should not be disregarded. This is due to the numerous uncertainties and unpredictabilities that come with trading, which, if improperly managed, can result in unanticipated losses. To safeguard their investments, traders should thus have a strong risk management plan in place.

Remember to set at least 1:2 or 1:3 Risk reward ratio so your chances to make money will just increase.

Creating a Realistic Trading Plan

A trading plan is an all-inclusive collection of rules and tactics that traders employ to direct their thinking while making decisions and how they approach trading in financial markets. 

Here are some components of a trading plan:

Trading Goals

MAIN GOAL: Capital Growth over a year.

  • Revenues Taking: Every Quarter


PROFIT TARGET: 4 times my risk percentage.

TARGETED RETURNS: 20% net returns /year (after taking quarter revenues). 

  • COMPOUND Interest:
    • Calculate while the strategy is live (Since is impossible to predict returns in these markets).
Evaluation of the Market 


JpMorgan, Bernstein, Wall Street, and others institutions look at a bullish market for 2024-2025.

Why? What is driven the market?

  1. The launch of crypto ETFs in the USA is the dominant topic right now for Bitcoin as an asset. Major funds are already trading shares of this type of products.
  2. Adoption is increasing despite regulation.
  3. Altcoins market caps are increasing rapidly.

What industries to follow?

  1. AI Tokens
  2. Defi solutions
  3. Meme coins adoption
  4. Mining solutions
  5. Payment Solutions

Fundamental Factors for 2024 that can impact crypto markets:

  1. Central Banks and monetary policies
  2. Interest rates, inflation indicators
  3. Regulators going behind crypto platforms and exchanges
Trading StrategyShoulder-Head-ShoulderPosition

Trade must meet these conditions:

  1. Price is in the last shoulder, then:
    1. It can not go up or down (Depending if the pattern formed in a downtrend or uptrend)
  2. Price has broken the neck, then:
    1. Price come back to the neck (Now the neck should act as a support/resistance)
  • Illustration UPTREND

  • Illustration DOWNTREND

Risk: 1%

Look for:

  1. Risk/reward = 1:4

How to manage:

SL AND TP Policy:

  1. Take-profit = 

1st Target: 40%

2nd Target:


3rd Target:



  1.  Stop-loss:


One target


No new entries allowed for the rest of the session




Risk Management
  • Rule #1: A single position can not risk more than 1% per trade. 
    • However, it is allowed to:
      • Add more to a winning position; this will increase the size of a position without breaking the 1% percent rule.
  • Rule#2: Do not ever expand stop-loss.
  • Rule#3: Use multiple Take-profits.
  • Rule#4: Do not trade:
    • Range Markets: our strategy doesn’t work for this type of market. SHS pattern is formed after a trending market.
Trading Psychology
  1. Meditate once a week.
  2. Do not trade to solve life problems.
  3. Gambling is a signal of a tired mind. Take a rest.
  4. Read the market, and perform backtesting to boost confidence.
  5. Do not revenge the market.


A trading plan is a road map that, instead of depending on rash or emotional decisions, assists traders in making well-informed decisions based on pre-established rules and criteria. 

switch from demo to real essential tips

Explanation of this trading plan

Head and shoulders is a trading pattern that forms (mostly) at the end of a trend, up or down.

This pattern is proven to have 60% and above of assertiveness and is easy to identify.

With this plan we will look for consistent capital growth over the entire year of 2024 and 2025 while all data keep suggesting these are going to be bullish years due to technical and fundamental reasons.

We’ll take revenues every quarter.

This is a safe day trading strategy, this pattern does not show so often in a single asset, that’s we will look for it in all the industries established in the plan.

Starting from small trades

In order to start trading on the real market, you should consider starting trading with the lowest amount possible before getting in the big game and start increasing your trading budget.

By trading with high volume and position size, you might experience a huge emotional and physical pressure, which can negatively affect your energy and focus.

That's why you must start trading with low amounts, otherwise you will potentially lose all your investment pretty soon.

To increase your trading size, make sure you have made enough trades before moving on to larger ones. Start trading between one and two crypto trades per day, and continue until you observe steady gains for at least three weeks. To help you become consistent, do this over a few weeks. 

Once you are consistent and confident , it's time to step it up and make bigger trades now that you have demonstrated consistency with smaller trades. 

However, when you do so, be sure to examine your trading approach and trade management techniques. The increase in size may lead to trades that aren’t planned by you and aren’t included in your risk management strategy. 

Remember that trading is a journey, so don't count on overnight success. It's always better to wait and use the next best trading opportunity  rather than enter late or be in a rush. That's super important.

Starting from small trades

Managing Expectations

Setting unrealistic expectations for yourself and expecting to turn a big profit fast may be alluring, but it will not help your trading success in the short or long run. When trading cryptocurrencies, many traders have seen dizzying highs and lows. 

The issue with having lofty objectives is that not reaching them can lead to feelings of disappointment, irritation, and self-doubt. However, if objectives are set too low, achieving them can not inspire or give a sense of accomplishment. It requires experience to choose the proper goals since you have to know what is realistic. 

It takes perseverance and patience to trade. Unrealistic expectations cause traders to lose patience because they anticipate quick success and earnings right away. If the anticipated outcomes take a while to manifest, traders could get disheartened and give up too soon. 

One of the best strategies for controlling expectations is education. Find out about the risks, time, and effort involved in crypto trading, as well as the possibility of losing money. Speak with other traders to learn about the accomplishments of those in comparable trades. 

Keep in mind that steady profitability is a long-term objective and that trading is a talent that requires time to perfect. 

Continuous Learning and Adaptation 

Consider crypto trading to be ongoing education. Traders must stay committed to learning something new every day. It is crucial to keep in mind that comprehending the markets and all of their nuances is a continuous, lifetime effort. 

The markets are impacted by global politics, news, economic trends, and even astrological conditions. The landscape of the market is ever-changing. Traders are better equipped to handle the future when they have a deeper understanding of both the past and present markets.


Transitioning from demo to real crypto trading requires a shift in mindset, clear risk management, a well-thought-out trading plan, gradual trading size increases, realistic goal-setting, and ongoing education. By following these steps, you can confidently transition from demo to real trading and navigate the forex market with greater success. Remember, trading is a journey, and each step forward is a learning opportunity.


Catalin is the co-founder of Altrady. With a background in Marketing, Business Development & Software Development. With more than 15 years of experience working in Startups or large corporations.