I hope that you guys have a great weekend, in today forex faq, I shall be discussing about the below question from one of our fellow trader.
Thank you for your valuable help Kelvin.
I have been trading demo for 1 year, and I am still not consistent enough to trade a real account. I just need 1 or 2 strategies to get enough confidence to go to the next level.
I bet this is another common question among new traders when they first started trading forex. However this is not something that can be solved with just another 1 or 2 strategies.
So When Should You Switch From Demo to Real?
This is purely my personal suggestion; I will switch from demo to real when I am about to trade profitably with my strategy for consecutive 3 months.
It need not be a lot of different strategies, in fact, it can be just 1 working strategy and you are able to trade profitably with it. I have friends who are trading for a living with one single strategy.
So I believe that your lack of confidence is because you currently do not have a working strategy on hand. So what you can do now is to take up a course and learn one trading strategy. If you have already taken up some forex courses in the past, you can pick one strategy that you think is good and then practice it on your demo account.
One common mistake by most new traders is they tend to learn 2 or 3 different strategies at the same time. This actually lengthens your learning curve and makes you more confuse. You should stick to one strategy to see if it works and then slowly fine tune it so that it can gives you better winning percentage.
If you do not know what is fine tuning, you can take a look at my fine tuning tutorial that I have been doing for the last 2 weeks on a strategy that I have purchased.
The key here to switch from demo to real lies in patience. You have to pick a strategy and then slowly practice with it for months in order to know whether it works. The problem with most people is they tend to give up a strategy whenever it produces a single loss.
If you have been reading my blog, you will have understood that losing is simply part of the game. Therefore what you should do is to record down the number of wins and losses for 2 to 3 months and you will be able to more accurately calculate the winning percentage.
What To Look Out For In a Strategy?
For me, I am more concern about the winning percentage and the risk reward ratio. If you have a strategy with higher risk reward ratio, you can afford to have a low winning percentage. To me, the risk reward is more important then the winning percentage.
I hope that I have provided some insight to the above question, if you have anything to add, do feel free to give your comment below.