Alright, so I’ve been studying and backtesting and learning and dummy trading for over 6 months and I finally feel like I have a very good grasp of forex. My system has been working great, I feel confident and am ready to dive in to actual trading. What are the biggest issues to watch out for here as I make my move? I’m going to start very small (like 1000 units, ha) just to try to pick up any differences as far as execution and timing. I am going to trade with Oanda.
Also, as I’m reading through Oanda’s user agreement, I’ve noticed some wording that I really dislike. They can “make any adjustments to your account for any reason without notification”. Has anyone ever had them make an adjustment for something out of the ordinary? I assume this is just in case there is some kind of error, but still, I don’t like the wording.
On top of that, I’ve read numerous times where people have tons of trouble when they first go from demo trading to actual trading. Do people just freak out and forget all of their rules and strategies or what? Do the “bait shops” have some way to trip you up? Are the feeds and execution you get on demo platforms different from the feeds and execution you get on an actual trading platform?
I’m going live this week as well. At least as soon as the funds post to my account. I think the biggest thing is the psychology of it. I’ve been reading a book called “Reminiscences of a Day Trader”. I guess it’s pretty old and always gets good reviews by everybody as to the psychological aspect of trading. I really think my biggest problem personally is to take the extra 2 min to take a deep breathe and look at my trade again before I take it. Otherwise, I’ll miss something in all the excitement. Good luck!!!
I think the hardest part in the beginning was, once seeing my account was in the red, the desire to “get back to even” was very strong. I think it had a huge impact on the types trades I took, and how often I broke my own rules. So beat that gambling demon(if you have it) that makes you need to get back to even!
I would recommend setting a maximum amount you are willing to lose your first week and defend that sucker like the Alamo! The last thing you want is to be one week in, sitting on a 50% loss because you underestimated the emotional aspects, requiring you to make a 100% gain just to get back to even. I made a 100 trades (in 3 months) and put myself down 50%. It did take 3 months, but you really don’t want to be that far drawn down in such a short time, because it really messes with your confidence.
My advice, accept the fact that your gonna panic when the SHTF and be ready to deal with it rationally. You will violate your money management rules and your system, be ready to recognise it and correct it FAST. The key is to recognize it and be ready to deal with it and get back on track. Those that become successful follow their trading plan strickly. I atribute my gains going from 15% last week to 2% completely due to fear and greed. This won’t be a problem till you do very well or lose alot.
