Many of beginner traders start to ask themselves either in
their own mind or even searching in google search engine or if they are keen
learning through many forex courses and forex textbooks.
I know this is not an easy task but to tackle and to answer
this, the traders themselves must know about their personality better at first
rather than looking for solutions outside their boundaries.
Most traders are often trapped by the brokers, forex courses,
forex signal service and many others similar profile to have a super duper hype
of easy cash flow in trying their system or services in a demo account.
In a way, it is true that a demo can help traders to
understand more of how the forex market works and how to start trading. But do
not think that trading forex is very easy as it happens to many novice traders.
It is very common that brokers often set a trap for novice
traders by trading on the demo first and become billionaires easily the next
month or the next year. Is this how you train yourself at the beginning? Or the
brokers help in training you by giving an over leverage feature into your
I think you know what I mean by that. Now I will bring you
deeper and you will realise even more why they want to train you by building up
your emotion base to revenge the loss of trading or by not accepting your
Some people are lucky to end up their losses in the demo
account but what happen to some other traders who are very willing to trade and
start opening their very first live account straight away after just knowing
how to use the platform from the broker?
They are really do not fully understand their risk and not
equipped by a suitable trading system, trading plan, and other similar but either
they realise or not, they just jump into a big shark market arena in what we
commonly say a no man land.
So, how do you keep your mindset ready as an original
without those greed and fear feeling during your live trade?
First simply ask yourself if you doing well and consistently
in a demo trading, how did you do it?
Secondly, do you have a journal for your own record? It is
very important because you can review and mirror that psychology and implement
the same method in your live trading. Most traders are almost at a care free
state during demo period and this is because:
is not your real money.
are willing to lose the money.
do not affected by greed and fear.
is very easy to trade just click either buy or sell button and boom...
magic you are on the trade.
In live trading, most traders tend to do an opposite habit
of fear to lose money and this bring them into a perfect trading for money you
cannot/never lose rather than money you are willing to lose.
And that is just a small portion of what trading is all
about. As you can see, at the end it is all about the correct mindset.
Psychology here play a major role in trading because it can really and will
test your real greed and fear, your decision making, your money management and
how you control yourself in order to master risk control.
To be a successful trader is to know a true of yourself
deeply and master your emotion without copying any other successful traders out
there. Novice traders need to learn to focus on control and focus on their
analysis, if you are wrong then you are wrong and accept it but do not ever try
to even punish yourself by doing a more thorough analysis which often end up to
be a lot more of decisions into trading plan and as a result it can cause your hesitation to
enter a trade when it is actually at the right time to trade.
Nothing is easy in this world when comes to money because it
requires a hard work and due diligence. Why? Because these help you in knowing
your system better, know its drawdown and when not to trade. It is now again
come to how much you can learn and not about how much you can earn. Always
start your learning curve by knowing your system well and at the same time learning
about yourself during those testing phase. Novice traders are always take a
demo for granted and over judge it.
As the core rules of forex trading you must treat your trading
like a business, treat as it is a part of your daily job, traders must be more responsible
for its performance, how much you can achieve and how much you can do
realistically not statistically.
And so many more….to list them here. But in overall, it is a
matter of total control of yourself rather than looking into a holy grail of self-fulfilling
prophesy to make an unlimited money.
Get your mindset ready and then you are ready to trade with
the big shark with just any system you comfortable with.