Ah well!, looks like this is where we should all come to after graduating the Babypips School of Pipsology. I’ll Just share some of the things I’ve learned along my own Journey.
1. Accept that you’re worse than 70% of the real trading community:
You’re new, which means by extension, until you start making consistent profits, you’re part of the statistics, you belong to the 70%+ that’s losing money on a consistent basis.
2. Never avoid recording your trades, it’s the Lab you need to analyse your trading performance
3. If you’re good on Paper/Demo, you’re still worse than 70% of the real trading community:
You may not have gone life yet, in which case you’re worse than 100% of the real trading community because experience is even more valuable than your balance sheet (it’s an insurance against future losses that get’s better as you grow). This could be either good or bad, but make it good by letting this fact humble you and prevent you from thinking you’re good just because you nailed a few (or many) good trades on the demo.
4. Your first job is not learning how to make money trading Forex, it’s learning how to protect your capital:
Making money is the end goal yes, but in a field where most lose, you should focus on how to be better than the losing 70% first, then the rest will follow.
5. Your second job isn’t learning how to make money trading Forex, it’s finding a provable edge over the market:
An edge in that it let’s you win enough times to be profitable, and provable in that you can repeat the process back in time and into the future.
6. Your third job isn’t learning how to make make money trading Forex, it’s building a trading strategy around your edge.
Your strategy is required to work effectively by taking the best advantage of your edge, and ensuring you, The Trader’s profitability over the long term. This requires a number of things in sync:
(i) Optimal Leverage
(ii) Optimal Win Rate
(iii) Optimal Risk vs Reward
(iv) Positive Expectancy (a guarantee that you’ll be profitable in the long run according to your trading style)
7. Your fourth job isn’t making real money trading the Forex Market, it’s making paper money with your trading strategy for a “representative” length of time:
Representative in the sense that you have practiced it long enough to confirm that it works. (a guarantee that you’ll be profitable in the long run according to your trading style)
(i) Find a good broker (that has good enough Spreads, Commissions and Swaps to give your strategy the best chance of survival)
(ii) Trade demo with your strategy and this broker for as long as the strategy requires. There are strategies that require up to a year of implementation to guarantee profitability, there are some that require only a few months, practice your demo wisely.
8. Your fifth job isn’t putting down your full trading capital on your live trading account:
It’s putting down a “Risk Capital”, a small percentage of your actual trading balance to see how your strategy performs, Demo versus Live.
9. Only if you’ve passed steps 3 - 9, go live with your full trading capital and trade like a Pro.
Note that you should always have a “shut off” loss percentage of your account where you stop trading if things get bad.
9. If you lose more than your strategy dictates per any length of time, Stop trading and go back through steps 3 - 8 again.
10. Enjoy the fruits of your Labor