Trading is not an easy profession and if traders start in these business in the wrong foot it will be more harder for that trader to achieve success. But their is a better path to take to increase our chances of success and may also save us lots of money.This recommendation is based on my personal knowledge and years of experience as a real trader.
Path To Success:
1. Learn a lot, I dont care if this and that website or person tells you that you can easily learn how to trade forex, the truth is they are lying. There are two aspects of trading that should be given emphasis in learning, these are the technical and psychological aspect, the technical aspect are easier to learn as compare to the psychological aspect because you cannot perform technically better if you are not psychologically in control of yourself, but make no mistake about it they are both important in trading. Just make sure that you have a thorough understanding on both aspects before you move on to the next step. There are a lot of free learning materials pertaining to such topics online just chose what you believe the most comprehensive and easy to understand. At the end of your learning you must already have chosen at least one trading strategy to use for the next step.
2. Demo trading, Okay you completed the first step and you feel that you are technically equipped to face the market, not yet, you need to test first what you learned in a live market environment without the risk of losing real money, dont just play around trading a demo account,you have to apply the strategy you chose from step 1 and feel it as you are trading real money, this is the point where you can make the necessary adjustments to your trading strategy should you feel there is a need, what is important in this stage is to establish a track records of profitability using a particular strategy, do it for at least 3 months and evaluate the results after, if the results are good then move on to step 3, otherwise evaluate your trading performance, make the necessary adjustments until you get the results you wanted, do not attempt to move to step 3 if you cannot achieve your goal here, you will surely loss money, I guarantee that it is more harder to trade in real account than in a demo account.
3.Live trading, now you have proven your worth, you achieve step2 it is time to swim in real water with sharks and piranha waiting, there is not much adjustment here, you just have to continue what you are doing in the demo account, if you follow exactly the same approach in the demo you will probably get the same results in live account, but be aware though that you will experience emotional pressures here in all of your trading activities that can alter the results, this is an aspect that you dont experience in demo trading, most traders fail in handling such pressures, but if you are disciplined in following your trading rule you will surely get the desired results in your trading, it may be a struggle to control your emotion at the start but it is the only way to be successful in this market, your goal here is to learn how to control your emotions, once you are able to handle it effectively, trading will be an easy thing for you. To minimize the risk I recommended that you use a cents account first.
Trading is a tough profession that only a few succeeds but if you travel the right path in your journey you will surely arrive in your destination.
No comments:
Post a Comment