10 Steps to Becoming a Successful Forex Trader (Part 3)

Filed under: Learn Forex Trading |

For today’s forex-related article, we shall complete the ‘ten steps to becoming a successful forex trader’ that we started yesterday, beginning with number 7…

 

7. Now that you have put a few trades on your demo account and figured out how to work out your lot sizes in relation to your risk levels, it is time to trade like you would as if it were real funds and give your system/methodology a really rigorous test. Make yourself a trading schedule and try to stick to it. This might include checking your charts every four hours (on the 4-hour charts), or even just once per day (on the daily charts). Whatever you choose, try to stick to it and make it a part of your daily routine.

 

8. Trade on your demo account for a period of three months (minimum). If you are profitable on every one of these three months, then you deserve to take your account live. If not, then trade on the demo account for another three months until you are profitable for each of the three months.

 

9. Open a live account and fund it. Now that you are trading with real money, things might start to feel a little different and emotions become more of a factor. If you feel that you are not trading in the same way that you did on your demo account, then trade with a minimal amount of money. You need to get used to trading with real money and taking losses – so this is all a part of your training (and losses should be looked upon as the price of your tuition).

 

10. Finally, once you have been profitable on a live account for three months, with each and every month being profitable, you are ready. Your system/methodology is working, your money management system is good, and your emotions are in check. Be wary that a change in market conditions could affect your system (depending on what kind of system it is). However, other than that, you could, in theory, do the same as you are with an even greater sum of money. However, whatever amount of money you choose to fund your account with, your money management system should always remain the same. This is something that we all must remember.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>