So, you’ve been practicing on your Forex demo account and the results have been good. It seems that you’re finally ready to trade on a real live account. However, you still have some questions that are kind of tormenting you.
So, here are 5 things that you need to know before you start trading Forex on a real live account.
#1: Your Biology:
We are programmed to be averse to risk. We tend to be less averse when we win and more averse when we lose. However, the aversion is always there.
Let’s say that you just had 5 winnings in a row. In the next trade, you feel a lot more confident. However, if you just lost 5 trades in a row, you’re starting to feel that it will go wrong so you better trade with less money, even if you’re looking at the perfect trade.
All you need to know is that there are times that you will win and there are times that you will lose. As long as you keep the losses controlled, you’ll be able to learn from your mistakes, from your losing trades. And these can be the more precious lessons you can ever get.
#2: You Love Trading:
In case you simply don’t love trading, you might as well give up now. Trading Forex successfully is not easy and if you ‘re not completely committed to it, if isn’t something that you truly love, there’s no point in continuing.
#3: Online Brokers And Platforms Are Not All The Same:
Many things have already been said about Forex brokers. And unfortunately, most of them are true. Despite there are still trusty and reputable brokers out there, the vast majority is unscrupulous.
In what concerns with the trading platforms. most brokers offer you the MetaTrader platform. Despite it’ free, it’s actually pretty good and works well. Some other brokers have their own exclusive platforms that they might want you to buy or pay a monthly fee to use them. Make sure that you know exactly with who you’re dealing with before you open an account with a Forex online broker.
#4: You Don’t Have To Be Right All The Time:
The notion that most people have before they enter in Forex trading is that they just need to be right to make a killing in Forex. However, these are the types of individuals that will easily lose all the money they had in their trading account.
Trading Forex and having some winning trades has nothing to do with being right all the time. If there’s someone or something that is right all the time, this is only the market. Not you, not me, not everyone.
#5: Keep Your Trading Strategy Simple:
As a rule of thumb, you can’t explain to a 10-year old our trading strategy it’s simply because it’s too complicated. The more complicated the strategies, the worst they tend to be. So, make sure that you simplify your strategy the max you can.
Author: Editorial staff of 70trades reviews blog