Hello merchant friends, I see that you have decided to visit me again, huh? Well, I will do my best in this article, so as not to disappoint you. I intend to write about something that I think is very elementary. In fact, if you’ve been following my articles for a while, you’ll notice that, for the most part, they have the same recurring theme: emotions and trading. Well, I intend to stay on point with that topic today.
If you are reading this article or have been following me for a while, I will assume that you are probably an active trader or becoming a very good active trader. As I’m sure you probably already know, making good money trading Forex is extremely difficult, sometimes; but it is always rewarding. Learning Forex generally takes a bit longer than most anticipate due to its complexity in the market. I applaud traders who are well enough to be considered advanced, but have still chosen to practice on a demo account, before starting to trade. I generally don’t advise learning to trade through a demo first, but it’s a good idea; then start putting cash in with the “big guys”. I’ll tell you this, once you’ve found the “hitter”, the rest is a doddle.
The key to trading Forex is to control your emotions. I have preached that message many, many times, but I feel it bears repeating. This is a business, and just like any other business, you need to find a way to become profitable. Many people see how their emotions rise and become very scared. Do not be so hard on yourself. Like I always say, just don’t let Greed steal all your winnings. Take the small trades, take the small pip profit and go home. By doing it this way, you will learn some successful techniques and be ready to trade live on your personal account. There are many brokers that will allow you to trade with minimum amounts, which is good to start with. I’m not sure of any US accounts like that, but there are some around the world that accept US clients, allowing $10 and $25 deposits.
As stated before, I don’t always advocate the use of demo accounts; however, I do believe that sometimes they can serve a dual purpose. Although they generally serve as a buffer between you and your new strategy, they also serve as your “cupbearer.” A former cupbearer was the one who would taste the king’s food before the king had a chance. This way, if there was a poisonous problem with the king’s food, the cupbearer would take the beating and die. His demo account can also teach you how to lose money effectively through practice trading – let him take the beating for you. Learning to lose is especially important because you WILL LOSE in Forex. There’s no way around that; therefore, the more effective you are at losing money and the better you develop your system and implement discipline, the more you will be well on your way to becoming successful in Forex.
So what am I telling you? Just relax and learn to “play the game”. No emotions, just trade Forex the way you should and watch your profits skyrocket. It’s only natural…
