This article is dedicated to many new traders that I see are increasing every day (that seems great), but nevertheless, they tend to operate without preparation and end up destroying their accounts or those of other people (which is worse).
To begin I would say that if you are operating real and you are still not sure of your system and even more of your psychological control when operating then I recommend you stop operating the real one and do it only in the demo. Only then will you avoid yourself (for the moment, keep punishing your real account).
A tip, from someone who won and lost money and knows what he is talking about. It does not make sense to enter the market if you are not sure. If someone was lucky in some operations, but he knows that he is not prepared enough, he would tell him to keep his enthusiasm and take advantage of his “good luck” … because that was just that. And good luck does not last for a lifetime.
There are no magic recipes. I feel very sorry when some people write to me saying that they have acquired a magical strategy that will make them millionaires. Friend, do not look with the Forex to be “millionaire in one year”. Look for consistency.
Stages that you must experience in order to be a good Trader
Take Forex courses, where they teach you Technical, Fundamental and Psychological Analysis. The most advisable thing is that you make consistent and serious preparation. With this I do not mean that you cannot learn in a self-taught way, it is also valid, however for those who are not familiar with statistical, financial and economic analysis it can be more difficult and tedious to understand them on their own. I do not recommend any specific course (nor would it be ethical), in addition to the charlatans and people who offer their programs as if it were the solution to all the problems of the world. But if I can tell you how you can filter if a course is worth or not (in my humble opinion, obviously some will not agree with me).
First of all, discard the courses that offer to become a millionaire in months or have 50% monthly profitability always. To say that is not very serious anymore in a market as difficult as forex. Second, take into account the duration of the course. The course to which you point must have a respectable duration. And in third place the best courses are those where you have a tutor when you operate the demo accounts, either live or in weekly meetings so that you’re Tutor, tell you what is wrong and how to correct yourself. Said tutoring should be constant and above all it should be applied when you are already operating in the demo accounts that are, putting into practice what you have learned.
There are thousands of methods posted on the Web, in forums or specialized forex pages. Thousands of methods and thousands of other hybrids of these methods, even when you have experience, could create your own methods. The methods or strategies already exist (you do not have to discover the gunpowder). What you are obliged to do is to try the method you have chosen against the past (that is the Backtesting). I want to be emphatic in the following. Testing your method means that you test your strategy against the past.
For example. Take the months between January and December 2009 and test the effectiveness on the EUR / USD using your MetaTrader or the platform that you use the most. The Backtesting is shown on an Excel sheet where you must enter data such as the entry price, the exit price, the normal profit, maximum profit, maximum loss, operating hours, etc. Only then will you be able to quantify if the method you are using is good for something or else you should discard it and use another method. Trading forex is a subject of probabilities you can have a strategy that of 10 entries 8 are good and 2 bad.
So if you have reasonable limits and stops your strategy should work and in a month your account “should” be with nice numbers for your eyesight. It happens that novice traders make the mistake of not trying a strategy as it should. An excess of confidence that in the long run will become very, very expensive.
When you have found an appropriate strategy and that offers reasonable returns of at least 4 to 6 months of continuous earnings. When you arrive at that instance then just there you can have a certainty that you can enter to operate real accounts. Even reaching that level is not a guarantee that you have an assured success, however, I am sure that a lot of money (and read it well) you will save if you do learning based on constant, sincere and responsible practice.
To get started; operating a demo account is different from a real account in several aspects, such as the psychological one (that’s why I mentioned the importance of having a tutor before). The management of control and emotions is another. However, everything is learned and there are techniques that help you to control the blissful psychological factor that (in my opinion) is the most important to be successful in this business. I recommend that you start with small amounts of money (when you are ready to start with a real one) and always be responsible when operating.
So, how do you become an “expert” trader? What to do?
- Be committed: You have to decide from the beginning if you are in business for the long term. It is a proven fact that people who commit to something long term are much more likely to succeed in those who are experiencing or are not safe.
- Learn what is important. In commerce, if you spend months learning all the minute details of all the different indicators of technical analysis, you are not only wasting your time but you are losing the knowledge of what really matters. Learn to read, interpret and trade based on simple price action strategies, learn to read a table from left to right, learn about business psychology and money management, ignore everything else.
- Train as you mean it. You will have to do a commercial demonstration before going to live. But if you just get into your demo account and do not change it as if you were trading on a real account, it’s not going to do much good. I suggest to the merchants that they only carry out demonstration operations for a month or three, to familiarized themselves with the platform and then start operating live with small amounts of money. You will learn much more by exchanging live with small amounts of money anyway.
- Find a mentor the fastest way to learn something? Learn from a mentor. I can be your business mentor; my course and member area are designed for this.
- Get comments you need to know if you are on the right path. If you are a member of the community of my merchants, you can get help and comments from other merchants in the forum and have access to me on the helpline by email. To be a professional anything, you need good constructive and even critical feedback at times (to learn and improve).
Marathon winner trains and plans.
If you think you can open an operations account, enter the market and start withdrawing money like Gordon Gecko, you will lose the race. You must train (learn and demonstrate trade) before running the real race. You must have a plan of how you will win the commercial career. The people who run the Ironman train for YEARS, plan, prepare, from everything to their clothes, what they will eat, how much they will sleep the night before.
The objective is to win in the long term, not in the short term.
I will not lie, You can get lucky in this game and earn some quick money. However, it will not last if you are not doing everything else that I have discussed here today. RAPIDLY you will return your profits to the market. In this sense, I am telling you that you need to have a long-term goal to earn each year and go back to work from there. Divide that goal into smaller and smaller parts where you can act every day. The more you prepare, plan and calculate how to achieve your business objective (or any other objective) by dividing it into smaller, viable objectives, you are more likely to achieve. Trust me when I say that 90% of traders lose in the long term and 90% of traders are NOT doing what I told them to do. Be one of the 10% of the winning traders.