When should you trade "live" in Forex?
Depending how you started in Forex and depending on your method of trading, you may have begun to trade live already. But if you haven't traded live and you are wondering when the right time would be, perhaps this article will be of help.
My personal opinion is that everyone that is serious about making money in Forex should start trading live as soon as possible. The reason is that the lessons learned when you trade live have much more impact than they do when trading a demo.
One of the things I do each year is volunteer my time to coach basketball. We start with kids as young as 4 years old. One night a week we spend an hour teaching them the fundamentals of the game; how to pass, dribble, shoot and play defense. But on Saturdays we play a game with a clock and a referee who blows a whistle when they make mistakes. Coaches are allowed on the floor in the early ages to help the kids and the referees always explain what each whistle means.
Why do we play games so soon? Because kids get better faster when they are in a game. During the week you can explain what "traveling with the ball is" until you are blue in the face. The kids still travel. But put them in a game and have an official blow his whistle when they make the error and it only takes a few times and the kids have it down.
Trading live is much the same thing. First, just because you know how to enter a trade in theory doesn't mean you will actually do it right when the time comes. You may click on Buy when you meant to click on Sell. You may enter you stop incorrectly. There are all kinds of administrative things that take on more meaning when you are trading live.
Also, you will actually feel the exhilaration of making money even if it is only 40 or 50 cents on a trade and you will have to deal with questions like should you hold onto a trade overnight or over the weekend? You will probably feel like a failure if you lose a trade. It will also help you develop your style or trading. Maybe you like the idea of short-term trading yet when you actually do it you find you are not able to make the decisions required to be successful and you find that you are better at trading longer time frames. All of these things and more will begin to develop you into a trader.
There are many things that live trading will teach you and you can open accounts with as little as $100. If you blow out 4 or 5 of these accounts you will learn more from that than spending thousands of dollars on a Forex course or seminar.
So, if you have been trading a demo account consider opening a small live account and begin to learn some of the lessons that will make you a better trader, you will be glad you did.
Questions and Answers
When I started in Forex, I wouldn't have known a good Forex trading system if it had walked up and slapped me in the face. Would you? Many traders I talk to have studied trading for many years, have taken expensive courses on how to trade, spent more money on trading systems, read many books, traded hundreds of hours if not thousands and still lost money.
When I first started trading Forex I spent hours drawing trend lines trying to figure out what price was going to do. I read everything I could about trend lines but no matter how I drew them or how many I drew, prices never seemed to obey them.
I trade Forex everyday and I teach Forex everyday and the most significant thing that helps losing traders become winning traders is reducing the number of indicators on their charts, learning to trade 4 RSI signals and understanding that a trade without momentum is not a trade.
Can you imagine trading and seldom getting a trade wrong? Can you imagine that it happened at about the same time each day so you didn't have to sit in front of your computer and watch hour after hour? Better yet can you imagine trading and getting the direction of the trade right more often than you got it wrong and that when you entered a trade momentum in the market immediately moved price in the direction of your entry and put you in profit?
What do you know about the indicator or set of indicators that you use when trading Forex? Have you actually made a list of the things that they tell you about what price is going to do? When was the last time you knew with a better than 70% chance that price was going to go in the direction you predicted and you knew why?
Is it possible to trade one hour a day in Forex and make money? Many people who want to trade Forex don't have the time to trade all day or even part of the day. So can you trade one hour a day and make money, perhaps enough money to live on?
The Forex currency market is a non-centralized exchange where banks, businesses, governments, investors and traders can trade currencies with one another. By "non-centralized" I mean there is no actual physical centralized exchange like the New York Stock Exchange or the Chicago Mercantile Exchange. Instead...
The fully automated service sends an email confirmation in receipt of the amount and then processes the order. Among the reputed agencies to order foreign currency from is Pawnbroker.
Created by David Lambert, the CCI was first used as an indicator for determining reversal points in the Commodities Markets. It was then discovered to be very useful in the share and forex markets. It is based on the theory that all activities move under the influence of cycles. The Maxima (+100) and the Minima (-100) occurring at regular intervals. The CCI measures the speed of price fluxuations as determined by oscillators.
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A merchant cash advance is a cash payment to a business in exchange for an agreed upon percentage of future credit and/or debit card sales. This relatively new industry provides business owners quick access to capital coupled with benefits not see with traditional loans.
When I first started trading Forex I spent hours drawing trend lines trying to figure out what price was going to do. I read everything I could about trend lines but no matter how I drew them or how many I drew, prices never seemed to obey them.
What do you know about the indicator or set of indicators that you use when trading Forex? Have you actually made a list of the things that they tell you about what price is going to do? When was the last time you knew with a better than 70% chance that price was going to go in the direction you predicted and you knew why?
When I started in Forex, I wouldn't have known a good Forex trading system if it had walked up and slapped me in the face. Would you? Many traders I talk to have studied trading for many years, have taken expensive courses on how to trade, spent more money on trading systems, read many books, traded hundreds of hours if not thousands and still lost money.
Not everyone plays baseball that trades Forex but they have a lot in common. To become a good trader in Forex you have to think like a good hitter. Good hitters have a "best" pitch to hit. They also have a pitch that is "almost best" and then it goes down from there.
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