Before you start on this horrible, horrendous journey, here are some of my recommendations and takeaways. Please take note of the following.
- You will lose money. Many times.
That is why you should practice risk management of risking 2 percent or less! People have wiped out their accounts with reckless money management. Remember, no matter how ideal the trade seems to be, there is a possibility that it can all go wrong.
- Do not give yourself too much pressure to be in the trade.
You probably should start off with a demo account so you won't lose real money for the time being.
Focus on making good trades, rather than hitting everything that seems positive (this can be really difficult).
- Do not compare yourself with others
You probably shouldn't mix too much with people that boast about their winnings. I have heard of a few aces that supposedly multiplied their accounts by 10x or more in 2 months. But seriously, what would that be to you? Would supposed Mr Ace share his winnings with you? No. Would Mr Ace transform you into somebody like him? No. Would you even be able to trade like Mr Ace? No! Everybody is different. So don't try. You probably should trade based on your edge - market research, chart patterns and the like. You will be wrong. Everybody is. And has it occurred to you that Mr Ace could be lying? P.s Mr Ace probably does not practice good money management.
- Find a good mentor
This is really difficult but in this business, there really is so much hokey and shady characters out there, it really can be hard to tell. So ideally, a course or forex mentor should:
- have email or contact access regularly
- have regular classes
- tell you the basics - money management, the importance of a trading journal, economic fundamentals and technical analysis
- be available to look at your trades (but this requires your trade journal)
- It is not going to be easy
Trading is incredibly easy but being a consistent trader is incredibly difficult. The road to success for consistent traders are paved with broken dreams, and dead bodies (literally, I am not kidding). I suggest laying off quitting your full time job to trade, unless you have sufficient capital, and or having a supportive spouse.
- It gets incredibly lonely
Sometimes you do not get people to talk to. Nobody really understands how difficult it is, you get 20 trades wrong in a row. Not to mention that there are ARSEHOLES who would diss you with their supposedly winning methods when they know you have a losing streak. Seriously, that is a horrible idea.
So, do you still want to be a trader?
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