You're 100% right. When I was first learning in 2005 about trading, I opened an test account on Investopedia. What did it teach me? Almost nothing. It was certainly fun! But the educational value, and experiential value was about worthless.
When it is not real money, your decisions will not mirror your actual decisions in a real case where you have money on the line. It is when you get burned, with money on the line that you learn something. You do not learn unless you have been burned.
Recently, I dumped some great investments. I was in profit even, and I wanted to continue to hold them even. If I was still a greenhorn, I would still be holding them. It was the times I got burned which taught me enough when to sell.
Yep, this.
This is very relevant to my personalty at least. I was burned and it forced me to a crossroads between quitting or learning to manage risk and emotions properly so I NEVER felt that margin call feeling again.
I still remember that feeling and every time I want to lose control, it stops me. Humans don't like pain so the brain will stop you from doing something dumb again. It's how we're built.