4 Important Things Before Opening a Live Account
So, you have been trading demo for the past few months, and are you now ready to open a Live Account ?
We are certainly very happy to hear this news. But, wait a minute, we also want to know if you really are READY for that. Why? Because we don’t want you to decide to trade but it’s actually not ready. We want your togetherness with us in this forex trading world to last a long time, even to the end of life.
These are four important things that you need to fulfill before stepping into a Live Account:
1. You must be able to profit consistently on the demo account
“Consistent profit” is not the same as “always profit”. Actually there is never a trader who has never experienced a loss throughout his trading career. Losses are actually part of trading, given the dynamic and constantly changing market conditions.
So, if for example in this week you experience a loss of two times, you don’t need to be discouraged, let alone despair. It is better for you to concentrate on increasing your skills in finding opportunities with a balanced risk-to-reward ratio , so that the trading strategy that you use will be more optimal in minimizing losses and increasing profits.
Make sure you always monitor your profitability on the demo account every month. Thus, you will be able to find out whether you are already on the right track or not.
2. You must be able to apply discipline risk management
Some say that the ability to find opportunities is only half of success in forex trading . The remaining half is the ability to apply proper risk management with discipline.
There are times when the market moves wild so you can feel doubt about your analytical skills. That’s when your mental strength will be tested and compliance with risk management is the only thing that can save your capital.
3. You must be able to stay calm even though you are floating loss
If you still often panic when you are being swayed by the market, when your transaction is still losing money (the term is floating loss ), then you are actually not ready for trading.
It’s not easy to be calm when you’re losing, but the good news is that you can maintain calm. The trick is to make the trading plan as detailed as possible and – of course – obey it.
4. You can still calm down even if you experience loss
When you have just closed a transaction with a loss, you don’t necessarily feel broken, lost in spirit, let alone stressed. You just immediately conduct an evaluation to recognize what is wrong with your step.
Remember that the quality of peace like that can only be obtained not only because you have calculated the risks and put your capital properly and appropriately, but experience also determines that quality. There is no instant way to obtain such qualities.