Demo trading is a simulated version of real forex trading that allows traders to practice and learn strategies without risking real money. Winning in demo trading does not guarantee success in live trading as the psychological and emotional factors come into play, leading to losses. In live trading, the risks are real, and traders need to manage their emotions and risks effectively to avoid losses. Therefore, while demo trading can be a valuable tool for learning, it is essential to approach live trading with caution and a well-planned strategy.