5 Main Features You Are Ready to Trade Forex
You may have (or still) experienced a situation like this: You have learned various kinds of forex tricks and strategies, have been practicing for months in your demo account and can see that your simulation is going well. From the initial virtual capital of only $ 10,000 you can develop it to – say – $ 11,000 in a month.
Not satisfied with that, you try to repeat the simulation (because the demo account is only active for 30 days). You again make a demo account and run the same forex trading strategy . The result is still good, in the sense that you can return profits. Still not satisfied, you repeat again and repeat for several months.
Although the results are still good, but you never realize the forex strategy into a real account . There is still a question mark in your mind, “Am I REALLY ready to jump into real forex trading ?”
That question is quite natural for someone who is just starting a real forex trading in a real account . Well, here are the parameters that you can make a benchmark for assessing whether you really are ready for real forex trading .
Parameter 1: You can make consistent profits.
Remember: make consistent profits DIFFERENT with always profit every time. In the world of forex trading, there is not a single forex strategy that never produces loss transactions. As such, there is no professional trader who has never felt a loss during his trading career. Because the market is very dynamic, the risk of loss is part of your battle.
So, if yesterday you had the chance to feel bitter, or two losses , don’t be discouraged. That is a very normal thing. What’s more important than that is whether your equity or capital increases as long as you do a simulation on a demo account or not? If the answer is YES, then it is one of the parameters that you are actually ready to become a real trader.
Equally important is that you know exactly what you are doing so that you can make consistent profits. This is closely related to the second parameter below.
2nd parameter: You have owned and carried out the trading plan consistently
Some say that half of your success in trading is determined by your ability to do analysis, while the other half is determined by your ability to manage capital and limit risk ( risk management and money management). At least these two things must be in your trading plan.
Why? Because the market is very dynamic and you cannot predict market movements 100% accurately. At times when your position is opposite to the market direction and loss is approaching you, you must really already know what to do instead of being confused, especially panic.
If you already have a trading plan and can run it well, it is the 2nd parameter that you are ready to fight in the real arena.
The 3rd parameter: You stay calm even though you have just lost
I admit, it is not easy to remain calm (let alone smile!) If you have just lost some money due to loss in a transaction. But did you know that in fact seasoned traders are able to consider cut loss as an ordinary thing?
That’s because he realizes that one day he will definitely experience a loss. Therefore he has prepared himself by limiting the risks he faces. All that he set in his trading plan .
When losses actually occur, he is ready with all his anticipation. He will still be able to think clearly and evaluate. With the trading system that he has tested and proven his ability, he is ready to take the next action.
4th parameter: You don’t try to “revenge” when you lose
Often when a trader experiences a loss, there is a desire to immediately reply to the “defeat” as quickly as possible. This is actually wrong, because such an emotional feeling often triggers a trader to open a bigger position than he should. This action not only means not being disciplined in carrying out the trading plan , but also opening up opportunities for even greater losses.
The best thing to do is as you do in the third parameter, which is to remain calm plus control the desire to immediately cover the losses that have just occurred. Keep running the trading plan well in the belief that the loss will be closed automatically if you remain in the corridor of the correct trading rules. There is no need to rush because the market will always provide opportunities for you. If you can eliminate the desire for “revenge”, be prepared to immediately enter the real world of trading.
5th parameter: You feel comfortable with brokerage services
Before deciding to open a real account , you certainly need to know what you will get as a broker’s customer. Are there analytics services to add to your trading references? Are there any educational services you need to improve your knowledge and trading skills? Is the broker regulated (Commodity Futures Trading Supervisory Agency) so that the security of your funds can be ascertained?
So, that is the five parameters that you can make reference to whether you are ready to become a real trader or not. If all the parameters have been met, there is no need to wait long. Immediately take advantage of the very attractive forex market.