Why demo performance is often better than live performance?

[Trader_Rob]

But some most of people while trading in demo, they never serious to use demo account for learning. And then in real trade, they do not have enough emotion management and make their real trade going worse.

I agree with this. When using a demo account, we are often careless knowing that we have nothing to lose no matter the outcome. That is why when we switch to a real account, we become more nervous and often do not know how to handle our emotions.

[AbdulShiek]

Demo trading account is only for trading purposes. It doesn't involve emotions and real money so it won't create panic that could affect trading performance.

[Aya]

Demo trading account is only for trading purposes. It doesn't involve emotions and real money so it won't create panic that could affect trading performance.

That's true. Your sole purpose is to practice trading. Hence, you are not very anxious about losing funds. You become more of a risk-takere and you are not easily discouraged when you lose because it is not real money.