If you are planning to trade live soon, READ THIS!

Beginner Questions
1

DON’T GO LIVE! You are probably NOT ready yet. At least that’s what I think for 1st time forex traders (like myself). You will hear that most people have lost ALL of their starting capital, then started to study in-depth all the mechanics of trading.

My advice to you is [B]DO NOT START TRADING[/B] until you have a system that can consistently generate profitable trade in a demo account for a long period of time.

I found myself trading naked, without a proper strategy & with poor risk management (over-leveraging is such a big temptation for 1st timers). At least I did not lose all my capital and actually made 180% profit on capital in one month! (that doesn’t mean that you will too, actually, I’m pretty sure that the odds are [B]against[/B] you)

However I have stopped trading live since and will further enhance my trading skills before taking the plunge again.

That’s just my opinion, good luck to all you traders out there :slight_smile:

3

Trading naked refers to trading without indicators, but you did explain what you meant. Leverage is not the problem and it is a myth that high leverage blows your account; the lack of risk management does. It does not matter if you leverage 1:1 or 1:500 if you decide to risk 2% of your capital and execute your risk management properly than you will lose 2% regardless of leverage.

You can achieve profits in a demo account for two years, when you go live you start over as your demo performance is worthless. It is like you wanting to become a better basketball player and sit at home with your video game console playing a basketball game thinking when you hit the court you improved your game.

Additionally, luck has nothing to do with trading and if you want to get lucky you have to be good.