Yes, that is absolutely correct. Even a skilled trader who has worked like crazy on analysis and is up to date with everything in the market cannot protect its account without proper capital management. One needs to be prepared for any unforeseen market movement which may flip your account upside down.
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Educate yourself before trading.
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Interesting point
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To start with anything, strategy is a must. And in forex, one not only needs a strategy but also a self training to keep cool while taking decisions. All the above points are very exact for beginners in this line. Along with this, one must set her/his mind that s/he will be under constant grooming for this.
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As a Beginner we should try demo account to learn all the basics of forex before entering into the risky market, and try getting profits using the low leverage ratio
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main thing is to learn from you mistakes
As a beginner I started with a demo account back in 2017. I had little knowledge then, started taking huge trades without any risk management. When I found myself all in negative figures, I wondered the reason. Only then I started to look into the concept of analysing trends, using SL-TP, entry-exit timing. Gradually, I started grasping the idea of safe as well as wise trades. Whoever begins their journey here, it’s best to educate yourself a bit before going in full swing. ALL THE BEST.
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Exactly. The best way to step into forex is via demo trading. Thats what gives you a practical experience and familiarizes you to the real world of forex.
@Shane.ethan yes demo is important for learning but demo account needs to use effectively. We have to use demo to customize our strategy and find out the winning percentage and risk reward ratio.
Correct! Demo is important to become a little familiar with this market…
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I would hardly call trading on demo as valuable experience, live spreads and execution speed (which you can’t measure on demo) show true difficulty to make money in live trading. I think newbie traders should set limit of how much time they spend on demo.
Great Tips, and the stop loss one is key in protecting capital and risk management
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Yes, that is also correct. Demo trading is just for learning purpose, you cannot completely rely and expect the live market to work like the demo environment. The main difference between like and demo is due the execution which in case of a live account done by the liquidity providers who are actually dealing with the trades, but for demo its the server of the broker which executes the trades. Its pretty normal to get different execution speed in both the environments.
These points seem to be very simple but are very important. I would like to add that do not jump into forex trading without a plan. Forex plan includes goals which sets a pattern that you can follow
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The best tip to learning forex is that you should take things slow. You should not try to rush it because not everyone can take the rush. Think of learning forex trading as the same as learning a topic in the school system because there are actually schools for learning forex.
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Definitely, one cant just keep trading on demo. However reasonable practice for 3-5 months is required in my opinion.
Learn trading but side by side start practicing trading as well. Because only learning will not work until and unless you have actually witnessed how trading is done.
As a beginner yous hold always know that you’re the one trading and not the other people you find in the forum. As much as you are learning you should know that you are the one trading. It is your own trading journey and not anyone else’s. It also takes time to learn and everyone has their own time to learn.
Getting rich quickly is what most traders think. Then again not everyone actually gets rich through forex. the right words would be to not think that forex will make you rich. Forex trading does not guarantee that you will get rich. It is like a probability game to some people.
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Exactly, Making money via forex isnt as easy and quick as it seems. It instead requires a lot of hard work, practice and patience which obviously takes years to come.