Forex Trading - Start Out With a Demo Or Micro Account to Test Your Trading System
Use A demo or Micro Account to Test Your Trading System - It may seem difficult but resist the urge
to start trading with large am
ounts of real money. You should get some practice first and perfect your skills using a Forex demo account. You will use the demo account as your "acid test". If your demo account isn't growing, then your trading methods are unlikely to make you a profit with your real-money account.
As you refine new Forex trading strategies, you should test them out using a demo account. Remember practice makes perfect in Forex trading.
Learn Forex Trading -- Buying a currency trading robot is simple but will not help you learn Forex trading. In the end, you'll have more trading success if you learn to how to trade Forex yourself. You can become educated about Forex through books, courses, and practicing what you know using a Forex demo account.
Use Only Risk Capital to Trade -- "Money you can afford to lose" is called risk capital. This money is specifically put aside for speculation in the Forex market. In this way, if you lose all of the money in your Forex account, your lifestyle would not have to change.
"Scared money" is when you trade with money you cannot afford to lose. Scared money is the money you fear losing and are going to agonize about through restless nights.
You're in precarious situation if you can't afford to lose the money in your Forex trading account. Don't forget that even the best trading strategies won't deliver the exact profit you need at the exact moment you need it.
Never Add To A Losing Trade - It's easy to fall into this trap. Nobody is excited to have a loss on their trade. Realize that losing trades is a natural part of Forex trading and even the top Forex traders have had losing trades.