Hi everyone, my cousin suggested a few years ago that I look into Forex trading but I didn’t feel it was the right time for me.
Now I am interested to learn and understand that success requires study, hard work, learning from losses and dedication. Hopefully I can learn and succeed with the help of this community! If anyone wants to provide any tips other than study hard and don’t expect gains to be simple, then I’d love to hear them. Otherwise, I’ll begin my lessons!
Thanks,
Dion
Only emotion is different from demo trading. Trader hardly feel any emotion in demo trading due to virtual money.
If your cousin a good trader, you should ask him to teach you. That is easiest way to learn trading.
Construct a timescale plan from where you are now, and where you want to be, and what steps you need to take to achieve that.
Experiment as to what trader you want to be and what suits your lifestyle.
Learn how NOT TO LOSE MONEY. That means controlling risk and money management.
Emotional control is critical. Only real life experiences will help you learn, and it’s why most traders fail, because they don’t control their mindset.
One way to improve is by having a process plan that takes you from reviewing the market, setting out possible trading opportunities, and a simple strategy to follow which shows possible entry and exit points. You will have rules which must be followed each and every time - patience and discipline are key.
Look at each trade outcome - keep a journal and comment on how the trade performed - was a mistake made etc etc. Is there a learning need to address? how would you resolve that?
By following 6 above, you will be able to treat the next new trade with exactly the same process, the same mindset, with the aim not to dwell on the past, but focus on the current trade outcome and profit, and ensure it is going to be a good trade, even if it becomes a loser.
Experiment with how to handle FEAR. Fear of losing out, fear of taking profit too soon. It’s a normal human reaction and you must be ready to handle the situation by knowing what you are going to do if and when it happens.
9. Keep small lot sizes, low risk, and aim (initially) for a 1-1 risk and reward - which has been calculated by backtesting to be the most profitable percentage gain for newbies.
Some experienced traders whose win rate is higher than their losing rate would set their R&R return at 1-2 or more. That’s for you to find out…
Now that you are starting with the learning part, there’s just one thing that I’ll suggest, do not follow anyone blindly. Whatever sources you use, whatever information you pick up, be sure to use only reliable and genuine sources, because forex is all filled up with scammers. Just be careful with the choices you make. Best of luck!
Learn and start demo trading side by side with the same amount of money that you are willing to put in the live account. Also start with a lower leverage, not more than 30X.
Great tips and suggestions. Everything you say seems to make sense but I guess that putting it all in to practise will take some real effort. I’m definitely up for it, thanks!
Ok thanks. What’s the advantage to trading with lower leverage? Does it mean that mistake are more forgiving since they aren’t multiplied by as much?
Yeah I get the sense that its not a ‘teach me how you do it and I’ll copy you’ sort of thing. Everyone’s gotta find their own way of doing it.
Thanks!