FOREX Trading - Getting Started
You made up your mind -
This is what I'd like to do!
Now where do you go from here? What is the next step to take?
1. Open a FREE Demo trading account and experiment with the software.
Demo trading is very similar to live trading - you are using the exact same software and data feeds that live traders are using - all for FREE!
You can buy and sell and simulate trades in real time.
Demo trading will give you the opportunity to experience firsthand what trading is all about without risking any money!
There are however some differences from real trading.
a. There is no real money involved in demo trading.
Therefore there is no real risk in demo trading as there is in live trading.
You cannot lose any real money because you are playing with "monopoly" money.
The benefit of demo trading is that you can experiment as much as you want.
Click everywhere and see what happens. You cannot do any damage!
Take your time and become comfortable with the software and the trading.
b. There is no real stress involved in demo trading.
It is like playing a game. You cannot get hurt for real.
If you lose money, it is not real money.
It does not hurt you at all to lose some "monopoly" money.
If you lost everything, you can just apply for a new demo trading account and continue with your demo trading and experiments.
Therefore some people does not take demo trading seriously.
They trade as if they are playing a game:
The sad thing is that they are not trading, they are gambling!
They will convince themselves that they are very good traders, when in fact they are not!
When they start to trade with real money on a live account, suddenly they will experience that they cannot cope with the live trading.
Suddenly it starts to hurt when you make a mistake and lose some real money.
Many traders cannot cope with the stress involved in real trading, and start to make mistakes because they are feeling uncertain and afraid.
Be careful not to become too comfortable with the demo trading!
If you do not learn to respect the markets, you will get into trouble.
Handle each demo trade as if it is a live trade, as if you are trading with real money!
Remember that in live trading every trade counts!
What then is the benefit of demo trading?
2. Develop your knowledge about trading.
There are many books, e-books, trading ideas and trading methods available for free on the internet.
Unfortunately not all of them are good.
Without the proper knowledge and background it can be very difficult for a new trader to distinguish between the good and not so good information. You may be wasting time experimenting with methods that are not working at all!
Please note that it is not necessary for you to reinvent the wheel before you can start trading.
Use the skill, knowledge and methods of other traders to your advantage!
Sign up for an online training course, or sign up for personal training.
>>> Click here to learn more about the FX Masters Forex Trading Course
3. Open a live trading account and start with micro trading.
It makes no sense to keep on demo trading for months on end.
Yes, you will be busy learning trading methods, and you will develop an understanding of market movements over time.
But you will not learn to cope with stress while demo trading, and the handling of stress is a very important part of successful trading.
My recommendation for you is to start with real trading as soon as you are comfortable with the trading software and understand market movements.
If you start with micro trading (= trading with a very small amount of money per transaction), you will be able to trade in a way where the risk is very low and you will be able to learn to cope with stress in real situations without risking all of your money.
Only when you are comfortable and successful with the micro trading, then you can start to trade with more money per transaction.
You are welcome to contact me if you need more information on demo trading, forex training or the opening of live trading accounts.
I will do my best to assist you.
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Copyright 2013, FOREX MASTERS