Hi . Im George . I want to start trading but my big problem is that i was a big gambling addict and im afraid that the trading game will spark my urge for gambling .Any of you had this problem ? After how much time of learning should i start trading with real money ?what are the best steps to take ? After some time and experience , what capital should i have in order to make 5k a month without too much risk ?
I cringe at the thought of re-igniting one of the oldest debates on this forum: [I]Is Forex Gambling?[/I]
My view is that [I]retail forex trading absolutely is gambling,[/I] because retail forex trading is speculating, and [I]speculating is gambling with financial instruments.[/I] Obviously, you see the similarities between forex trading and the type of gambling you were addicted to – otherwise, you wouldn’t have asked the question.
Approach this market very cautiously. The worst mistake you could make at this point would be to deny what your own eyes are telling you: that forex speculation is gambling. If you have not totally conquered your former gambling addiction, then this is a very dangerous place for you to be.
The short answer is:
When you have mastered demo trading, you [I]might[/I] be ready to venture into live trading.
Mastering demo trading means proving to yourself, over many months of consistent trading, that (1) you can make a trading plan and follow that plan precisely, (2) your trading plan includes strict risk management and strict money management, and (3) your track-record, month-after-month, is one of consistent profitability.
When you have accomplished that, and when you have completely and honestly resolved the gambling-addiction issue, then you’ll be ready to move [I]cautiously[/I] into live trading – [I]with a small initial deposit, risking tiny amounts of capital on tiny positions.[/I]
If you have the discipline to start small in this way, you might just turn out to be one of the few who survive long enough in this business to grow their accounts and ramp up their position-sizes.
If you don’t have the discipline to master demo trading first, and then venture into live trading in [I]baby-steps,[/I] then you should seriously consider whether you have the temperament for this market. Your former gambling problem might be kicking in.
Before you begin demo trading, study, study, and study. Start here: Babypips School of Pipsology
Realistically, you will need something like $100,000 to $200,000 in trading capital, in order to average $5,000 per month in gross profit, over the long term. This is based on earning a consistent 2.5% to 5% return per month on your working capital.
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