In today forex faq, we have a question from one of our fellow blog readers
Below is the question
As a new forex trader, what is the first step towards trading
I believe that this is one of the common question among new traders and therefore will like to use this post to answer this question.
If you are new to trading, there are a few things that you have to bear in mind before you commence in this journey.
1) You must be passionate about it
This is the number one step you have to go through before you actually embark in this journey of forex trading. Without passion, you will never be able to stay in this field for long. Even if you have a good course in your face, you do not have the determination to practice what you have learned in a demo before you start to trade live.
The number one mistake among new traders is they often start trading with a live account and they end up losing a lot of their hard earned money.
For all my students, I advice them to start with a demo first and only move to live trading when they manage to get 2 consecutive months of profits in their demo.
In order to pass this demo trading phase, you must have the passion and patient to do it. Without passion, you will not be able to go through this demo phase.
I can totally understand why most new traders are eager to get into live trading because you want to make money fast. That is why I started my trade copier service for my students to help them grow their account while they learn how to trade from me.
This allows them to fully concentrate on practicing on their demo which is the key to successful trading. Therefore you must always make sure that you are passionate about forex trading before you embark on this journey.
2) You must have a reliable strategy for it to work
Once you have the passion, the next thing you must have in order to make consistent profit from trading is a reliable strategy.
From my year of maintaining my blog, I have received emails from a lot of readers telling me how much money they have lost all these years. Upon asking them a couple of questions, I realized that the number reason why they lost their money is because they are trading without a strategy. Most of them simply rely on guesswork to trade their account while some of them uses those free strategies that they learn in youtube.
Most of the videos in youtube are created by marketers and therefore the strategies that you learn from them simply do not work.
If you are serious about making consistent income from forex, you must always make sure that you learn several reliable strategies to allow you to trade in different market conditions.
3) You must have the discipline to stick to the strategy to make money
For some traders, they are still losing money even when they have a reliable strategies on hand. This is mainly because they do not have the discipline to stick to their strategies.
Some traders are very eager to get into action and therefore they will also enter trades even when the market is not according to their strategies which usually ended up as losing trades.
Therefore having the discipline to stick to your strategies is very critical to your success. One of the best way to train your discipline is your demo account. That is why I emphasize a lot on demo trading for my students.
I hope that I have answered your question and do let me know if you have any question.