People keep on wondering and hearing that Trading Forex sounds easy and a good get rich job quick thingy. The fact that their perception was mislead by some unknown traders who has the lack of knowledge and experience and expecting much from the hype. Mislead by the ads made by the brokers. Mislead by some friends who had been playing demo but not for real.
In fact, It requires a lot of dedication, hard work into training your self and the skill required to trade with the sharks. Most people are let down by the hope of taking the real trade and then loss, changing system to system or even doubt about trading the forex market. As most of you might heard that a risk disclaimer always mention that FOREX investment or trading is a High Risk instrument, and requires you to be able to cope the responsibilty of a loss and profit. They utilise leverage that can cause as a tool for your destruction mentally and financially or could work in your favor.
Not all FOrex trading works for everyone UNLESS you are ready mentally. Its a job not for the emotionally high EQ ( Emotional Quotient ). Its not a job for the Lazy individual. It requires you to think deeper and find your niche in trading base on your personality. Its not following someone or a professional trader because you can never be someone else or be that professional trader. Why ? Because he or she has his or hers individual personality that reflect his trading style. TO be them means you have to be like them, personally, routine behaviour, what they like and dont like. Now to think that, its impossible to be someone else.
You just need to ask your self, Are you able to think objectively rather then instinctively. Will you able to control your self under pressure ? Can you make quick decision if your a short term trader ? DO you have the patience to wait and observe without intervening ? Are you always positive ? Not just in trading but in life.
Trading Forex is a continuous learning. It does not stop from the day you finish your forex course. IN real trading , you just go in there into an uncharted territory. You have to have a thorough understanding of the currency pair, thorough analysis and planning. Thorough knowledge of your own system. How you handle and implement new ideas and filtering bad trades. How can you investigate and prove that the system does work and comfortably for you to use.
If you prefer backtest, then backtest it! IF you prefer DEmo accounts , then test it and test it up to 6 months.
Here is the routine HOW I learn something new, or new ideas on any trading system.
Step 1. I learn the rules by backtesting them for at least 1000 trade test so I become familiar and natural to the rule of the any system
Step.2 ONce you get the hang of the rules and pattern, Trade test it again for another 1000 trade test according to your time schedule of trading.
Step 3. Forward test the system on a demo or live account with strict small position size only for the purpose of testing and accumulating data how it perform for 3 months or more.
Step 4. IF you think you are consistent the last 3 months continue on untill for a year before making any changes to the system unless you spot its weakness and made drastic change to the timing of its entry.
If your not consistent go back to step 3 but logged in a journal all the details of your trade including your psychological profile at that time.
YOu do this everytime you have an idea as well on your trading style or system.
Notice that it requires massive work of research and thorough testing. You just need to work hard just like any job in order to earn what you deserve and work for.
Have a nice trading and take care!!