I become to know that, to put stock in your own capacity to trade and to adhere to your edge, you need to kick the propensity for knowledge of the past trading. That is, back-testing and for the most part having a propensity for backpedaling and taking a gander at past signs that you wished you would have taken. Is it really in this way to do?
For me, it’s been demo trading and posting here a lot to talk with other traders. In order to believe in yourself, you need to be confident in yourself and that only comes from deliberate practice sessions in my opinion. Reading blogs, books, and watching videos is good, but at some point, you need to get some trades in whether on a demo account or really small live account. Personally, I prefer demo account because it’s a zero risk way to learn.
@jseymour84. Many thanks for your reply. I am trying to grow confidence like the way you told me. But I feel bore deliberately practice sessions. Does that mean I am not fit for forex trading? Otherwise, I am reading blogs, e-books and watching videos to improve my trading ability. And I am still afraid to go to live account. Fear of losing my small amount.
Go back over price charts with your strategy at the side of the screen. Not to find out what price will probably do next based on what it did last time, it is to make sure you know 100% what YOU will do next.
You must be fully familiar with and understand your own strategy. It must cover all possible eventualities of what price might do. Let’s face it, price can only do 1 of 3 things - it can go up, it can go down or it can go sideways. But in each case you have several options of what you do about it. Back-testing is good for this but practice, using small amounts of real money, is so much better.
Fear of loss is natural. Stay trading in the demo sessions until you feel confident, then move to a small account. Not everyone is cut out for trading, and for those that are, not everyone is cut out for forex. You might be better-suited trading other instruments.
I have been studying and practicing for two years and don’t feel anywhere near ready to start trading with real money yet. Patience and perserverance are the keys here.
The best way to learn to believe in yourself and your judgement is to learn to trade and to practice trading a lot. The more you practice, the more experience you accumulate, and the more experience you accumulate, the more you will be able to analize a market situation without making mistakes.
Are you saying that demo is boring to you? Sorry, not sure I understood correctly. If yes, if demo is boring to you - then I would say Forex is probably not for you. I’m not trading demo anymore, but I did for years and I never found it boring.
Your fear of losing your live account is good, because you probably will. Almost everyone does lose their first account. That’s why it’s so important to be disciplined and practice, practice, practice on demo. You should be consistently profitable over a period of time (say six months) IMO before moving on to a live account. And then, IMO it should be a small live account. When trading .01 lots - you’re talking about really small trades. But the transition from demo to live (psychologically), is another hurtle you must get over. Once you are successful on your little live account, I would slowly increase your lot size over time. Most traders spend between 5-10 years actually becoming ‘successful’. Actually, most traders quit. If knowing all of this, you still have the passion for it - then proceed and good luck!
Go back over price charts with your strategy at the side of the screen. Not to find out what price will probably do next based on what it did last time, it is to make sure you know 100% what YOU will do next.
@tommor, thanks tommor for your reply, but for me, it is hard to understand price charts. Still, I am trying to understand and figure out those things. Actually, I understand price but it took to too long, my brain is not very sharp in calculations.
We learn in formal education to look more and more closely at smaller and smaller stuff. But to understand a price chart better, first step is to go to the opposite side of the room and look at the chart from way over there. Now what’s it telling you?