I have recently switched to plying my trade online because I will like to spend more time with my wife. Online trading can be a rewarding job to do from the comfort of your home. However from surfing forex forums, I witness how easily a rookie can get burnout from the market. Don't get me wrong, I do have my fair share of being a rookie and losing trades just like everyone else but I consider myself fortunate to have met a mentor who is kind enough to show me the ropes. The internet has provide a huge wealth of information that a rookie can easily get access to. There are various brokers and mentorship programmes to choose from but choose carefully, the last thing you probably want is spending a fortune on some worthless junk. I will like to give you a headstart and share my own general trading rules and experiences to help u earn those extra pips from each trade.
Here are seven suggestions and points of advice to consider:
1. Follow the rules of a simple trading approach. Keep it simple.
2. Accept responsibility for personal decisions and actions in the market. No one-and No methodology-is responsible for your interpretation of the market.
3. Make sure you trade a demo or play money (paper trade) successfully before moving into the world of live trading. Once you are ready to trade live, then consider trading on a live mini account, with a very small amount of deposited margin to ease into the world of live trading. It is not only an emotional learning experience to gain control of but sometimes a very stressful event in one's life to move from trading demo money to trading live money. Once you have achieved success with a small live mini account, then you can move on to the larger standard accounts, where risk becomes greater as well as potential profits.
4. Establish a live account with a broker who is known for integrity. Brokers who play games such as holding trades in order for the market to have time to turn in order to capture your money for their gain are not playing a fair game. Reputations follow brokers who hold markets during slow and fast moments of volume.
Note: Always plan a trade that has more than a scalper mentality of gaining only 1 to 5 pips. This way, the broker has ample time to cover a submitted trade or pass it on through to a bank or clearinghouse. Data feeds are different for most brokers, depending on their source, and you should allow a broker a little chance to make money as well. After all, without a broker, the opportunity to trade in the markets would be very expensive. More will be offered on this value and need for brokers within the industry.
5. Invest in personal education before trading the forex, even if you have experience trading other markets. The forex is a totally different type of industry, with much more volatility than other markets. When selecting a firm or mentor to assist you in developing the skills necessary to survive your initial years trading the forex, and as you develop those skills, make sure the mentoring person or company is walking the talk. Many mentors teach but do not trade, and this may not be the best way for you to learn. A legitimate mentoring company or individual not only is trading live but is in a position to provide ongoing free daily support along with a proven track record of success to back up the ability to teach. Good mentors will have on file, for anyone to review, copies of documented live trading histories from students that they or their organizations have trained.
6. The greatest distance to overcome in each trade is found between the ears. I feel attitude is everything in the markets, and that is why I have placed so much emphasis on becoming a string trader. Many have told me that the truth comes out about yourself when you learn how to trade. You may learn much more about your self-discipline as a forex trader than you have ever realized if you keep an open mind as you pay your dues of time and practice. More will be covered in future articles on why you should strive to be a string trader and how this may straighten out issues regarding lack of discipline in the market.
7. You must persevere in the market, never giving up while learning and paying the dues of time. It is necessary to just hang in there even if it takes years trading a demo and a live mini account before you are ready to move into the world of standard account trading. All too often, traders go live way too soon and lose their money because they skipped the necessary steps of paying the dues of practice, spending time in the market, as well as just growing and finding out who they are. Trading definitely will reveal something about yourself that you may have never known.
Happy Trading!
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