Forex trading has become increasingly accessible over the past decade. Yet whilst being both educational and offering many opportunities a large percentage of forex traders actually lose money. So how can you differentiate yourself from these traders running losing accounts? This article aims to provide you with some of the best trading practices which you can transfer into actionable advice in order to improve your trading, no matter how much or how little experience you have.
Get Going
Why put off to tomorrow what can be done today? This old adage is relevant to trading as well. Successful people are doers. It is important to seize every opportunity in order to achieve your trading goals. I am not just talking about placing the trade. Moreover, further education, learning a new element to technical analysis, backtesting a tweak to your strategy. These are all actions which can help you move forward in your trading, but if you don’t ever do them, they can’t help you!
If you find yourself procrastinating, a demo account can often be a good place to start. And as with most things once you take that first step, you often find yourself in a rhythm to keep going.
If however, you find this isn’t the case, then be stricter with yourself and schedule in time periods several times a week, for these exercises. If you commit on paper to a timetable you are much more likely to stick to it!
Practice makes perfect
Demo accounts are so incredibly useful, and they can often be overlooked. With a demo account you can keep practicing and practicing until you feel comfortable with what you are doing. A demo account enables you to become familiar with the platform, features of a platform and also become comfortable with your strategy. This is important no matter the level of experience that you have. An experienced trader will often turn to a demo account to make small changes to and tweaks to their existing strategy, in the same way that a novice would turn to a demo account to practice their strategy.
The big drawback of demo accounts is that your trading psychology tends to change when you use a real account compared to when you use a demo account. This is obviously something to be aware of when you then move to a live account. Trading smaller stake sizes to start with can be a good work around.
Learn, Learn, Learn
We all know how important education is and let’s face it there are no shortcuts to learning. There is so much information available on the web to help improve your trading, but you must dedicate, time, energy and effort into learning. Make sure you are familiar with terminology, ideas, and strategies and use your broker as much as possible. Top class brokers often provide a free, compressive educational package including, articles, webinars and even seminars in order to help you along your trading journey.
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