Four signs that you are ready to start trading - Make Money Online

Header AD

Four signs that you are ready to start trading

I don’t think it would be unfair to call someone who sat down at his computer and started training live immediately an idiot or at very least exceptionally foolhardy.   If he (or she) had so much cash that losing it was no problem, they might as well find the nearest drain and save themselves a lot of hassle!

The fact is that if you are taking Forex trading seriously, entering into life as a trader, even on a strictly part time basis – requires an immense amount of preparation, training, learning about the market and playing all this out on a dummy trading account where nothing you do is going to deplete your finances.

So here are four signs that you can check yourself with before you open the flap of the tent and go out into the harsh world of Forex trading.
1.      Profit and consistency
You need to be sure that in your dummy trading you are able to make consistent profits. Now this doesn’t mean that you never made a loss on an individual trade because there can’t be an honest trader who hasn’t made a loss now and again.  What you want to be seeing in your performance is that you are fine tuning your trading skills to achieve a decent proportion of the reward you are (theoretically) receiving as against the risk you are taking. 
You can tell all this by monitoring the book profits you are making – and when these start to mount as against the losses, it’s a sign you are ready to go live.
2.      Get your plan in place
On the whole, trading is more of a science than an art. It requires planning and self-discipline. Since all trading runs at a risk, you must have a clear set of risk management rules in place.  Now the market can be a wild and unpredictable place and when you walk through that kind of storm you need to stay focused and stick to the plan rather than trying to forget the rules and throw caution to the winds.

3.      Keep your head and keep your money
The third sign leads on from the second sign.  You have a plan in place but how well have you kept to it over the period of your “in-house training”?  Now is the time when you have to be supremely honest and self-critical. It has often been said that it’s OK to fool anyone else in the world but for heaven’s sake don’t try and fool yourself.  Look at the record of your dummy trading and see if you really have been able to handle your resources carefully and made a theoretical profit. If not, now may be the time to throw in the towel.

4.      Finally – are you sitting comfortably?
Last thing you need to make sure that all our trading arrangements are satisfactory. Happy with your broker and his trading platform, and allowing yourself a dummy platform to replay situations which may have been problematic.  And ask others how they graduated from dummy to the real thing – experience is the greatest teacher. Good luck!
Four signs that you are ready to start trading Four signs that you are ready to start trading Reviewed by Parvesh Bravo on 12:36 AM Rating: 5

Post AD