By: Johnathon Fox
Trading is one the very few things in the world where very smart people do some very questionable things. One of these questionable moves a lot of traders is make is to forgo getting very good trading education, before they begin to risk money trading live.
A lot of new traders think that Forex is a beast they can tame themselves, and whilst it is not impossible the correct education will speed up the process massively! Many traders would much rather blow their trading accounts than spend money gaining an education that will help them in the markets. Forex is one of very few things in the world where people think this way.
In most other professions in the world people realise they need education to succeed. For example a pharmacist can’t start handing out medications without training, a DR can’t start fixing people without training, and even professional sports people have coaches who train them. Forex is no different and if you want to succeed you need training and the correct education.
Get the Education You Need! Don’t Blow Your Money Reinventing the Wheel!
To make money in the Forex markets you do not need to reinvent the wheel and come up with some new wiz bang trading strategy. There are plenty of people making money from the markets every day.
To get the correct education you need to find the successful traders or mentors and set about learning what they do exactly that makes them money in the markets. It is as simple as learning a tried and proven trading technique of people that are doing what you want to do.
When You Find a Method Stick With it
This is the most important part of this article. When you have found either a mentor to help teach your trading, or a trading strategy that suits you, stick with it! Stop the searches on Google and in Forex forums for other methods.
The only way you will succeed and make the best of your trading abilities with your chosen trading method is if you commit 100% to it. To make money in the Forex markets and make it consistently you will need to give all your focus to your chosen trading method and perfect it.
You will need to learn the method inside and out. You must know exactly what to do given any situation in the market. The only way you can achieve this and make the best of your trading method is if you commit 100% to it, and focus all your energy into becoming profitable.
You are going to have losing trades and losing streaks. Don’t throw your trading method out at the first sign of a losing trade. Have faith and learn from the losers!
You Do Not Have to Lose Whilst Becoming Profitable
Forex traders are very lucky in the fact that they have the very best demo accounts available to them. In stock trading or other forms of trading the only way to demo or “paper” trade is to manually write everything out. Forex traders have the very best demo accounts at their fingertips. Metatrader 4 is one of the very best demo accounts a trader can use and I highly recommend traders use this industry standard trading terminal for their demo trading.
It is very important traders begin to use these demo accounts to improve their trading. There is no need whatsoever to lose money whilst learning to trade and perfecting your chosen trading strategy. I urge all traders who are not yet profitable to stop trading their live accounts, and start a demo account.
The only time a trader should begin to trade on a live account is when they have proven to themselves that they can be consistently profitable over many months. Making a few winning trades here and there is no good. The trader must have months of profitable trading behind them before making the switch to live trading.
Once the trader does move to live trading it is important they don’t go from trading no money to trading large amounts overnight. Trading live is different to trading demo. Whilst the accounts and trading terminal stay almost exactly the same, what changes are the pressures and emotions put on the trader.
When trading a demo account the trader has no fear and trades in the best mind set because of it. Risking fake money produces very limited emotions; where as trading with cold hard cash can do funny things to a trader’s brain.
Take it slow and build you way up over months and years. Trading is not a race and the winner is the trader who is profitable at the end.