First, you need to study the features of trading terminal. As a novice trader, you should open a demo account and explore the features of the terminal. Some experienced traders advise against working with a demo account because it can be delusional. A newbie who doubles his demo account in a couple of weeks tends to believe that it’s just as easy on a real account too.
In general, the problems that traders face do not manifest themselves in demo mode. Since the money on a demo account is virtual, the psychology that accompanies you in trading is also radically different from the one that will accompany you on a real account. Successful traders claim that learning to make money in the Forex market is possible only on a real account. So is it worth trading on a demo account?
IS IT WORTH TRADING ON A DEMO ACCOUNT?
Yes, to get enough confidence in where to tap. But as soon as you understand how MetaTrader or another terminal works, how to place a pending order, and how to buy and sell assets, drop a demo account and proceed to open a real account and learn to earn with a minimum volume (from 0.01 lots).
The abundance of available information on the topic creates the opinion that you need to read as much as possible to avoid common mistakes. The risk is that an informational mess can arise in mind, which is easier to throw out of the head than to sort out on the shelves.
WHAT TO DO NEXT?
Do not try to swallow the entire volume of knowledge on the topic – they can be contradictory since there are so many opinions. We advise the beginner to start with two trading books: Trading Chaos by Williams and How to Play and Win on the Stock Exchange by Elder. This is enough to overcome knowledge gap at initial stage.
WHAT DO YOU NEED TO KNOW TO CONSISTENTLY EARN IN FOREX?
“Laying the Foundation for the Right Mindset”
You see the EUR / USD pair’s uptrend on the chart, open a long position with the minimum lot, and make a profit. Your first real money trade is a winner! The main conclusion is made – it is real to make money on Forex. Then there are a few more simple and small victories. You don’t know how to analyze yet, so you don’t understand what explains the first successful trading session.
False target: Make Money Fast
You are thrilled to be immersed in the tangible world of foreign exchange markets and tend to think you can make money like Williams, Stowell, Gettis, and others.
At the same time, with joy, you have the first alarm – what if you can’t make money today? You come across assertions of traders on the forums. They say that they often lose their first deposit. This myth is intended to create an opinion in a novice trader that losing a deposit is normal, and sometimes it also makes fear that interferes with trading. This is far from the case. Few people lose their first deposit, and this is mainly due to the wrong approach to trading.
The main mistake is to set earning as your goal at this stage. The first victory gives you a reason to consider yourself savvy. Illusions and bright plans appear – one of those emotions that prevent you from trading with profit. You begin to confidently predict where the currency pair will go, but the stop loss is triggered more often than the profit.
WHAT TO DO NEXT?
Continue your practice and learning. Be selective about your sources. Avoid overconfidence – you have entered the era of youthful maximalism of traders. A tutorial on Forex from an experienced traders will help you.
New to Forex trading? Don’t miss these beginner guides from FXCC.