hey jawn,
hey everyone,
this is my first post on this forum just wanted to say hey before i just go busting out with my wild posting. Ive heard alot about babypips so i figured i would pop over.
so jawn your one month in congrats on takin the first step… im assuming your demo is still workin out well and your thinking of throwing some cash out there.
while im all about saying yeah dive in and make some cash… i want to say maybe you should hold back for a bit. yes having a live account is alot different and trading one whether you go bust or not would teach you valuable lessons…
but there are some things to think about initially, such as:
this isnt investing… this is trading
in trading you need to win with probability & statistics
trading systems give you this but if you test your strat for one month then your system is only as good as that one month of testing
while your trading system maybe be amazing 95% win rate yatta yatta that does not take away from the fact you could loose making 1 trade a day 70% of the time in one month…
but over the course of many month avrg itself out to its true probability of success…
the same is true with a bad system… low prob of success over short term may seem good but law of large numbers after a few months would turn that around and you would be shown your true rate of success.
so what am i saying…
hold off on your live account you need to check off things before you should feel ready
-have a trading system > 60% success rate with extensive testing
-well thought out entrance and exit for your trades
-well thought out money management system
- youll hear 1-2% or 5% or whatever from people but you need to assess your own risk level and carefully consider that level and how you should put that into action.
-you should trade this perfected system for so long that it should seem like a chore to trade it you should almost be mechanical yourself in how you approach, and put forth the trade from beginning to end.
-and YOU SHOULD ALWAYS TRADE YOUR SYSTEM AND STICK TO YOUR PLAN you trade the market the market does not trade you
- look for certain deadly signs of piggishness
- you chase the market moves in the demo
- you have hard time sicking to exit strategy in demo chasing profits
- you enter late when you missed the entrance due to walking away or whatever… and you chase
these will leave your account in demise
when you can look at all of those and say I do what I should do all the time whether i loose or not and i do not chase or do what i should not do all of the time
then open your account and experience emotional trading with very low amounts
build into your live trading comfort and after and extensive time increase account size and trade size and even leverage.
with the right money management and mentality you wont blow your account to hell.
remember test test test… when you think you got something good backtest… test test test… apply in live in low amount write down keep track of success rates and make sure your reward> risk
love pipynotstockings