Deciding when to take your forex live is one of the hardest choices you will ever make. Are you ready? What if you lose all your money? Should you keep practicing another year or take the chance? Hopefully, these 6 tips will help you come to a smart choice.
1. Pick Your Strategy
Jack of all trades, or master of one? Take sports as an example, how many people can be great at more than one sport? It is possible to be good at more than one sport, but easier to be great at one.
Assume you have two strategies that have a 55% win rate. Regardless of how many trades you place, 11 out of 20 will be losers. Wouldn’t you prefer to have one strategy that wins 70%, 14 out of 20, trades?
Unless you are a master of your primary trading strategy, keep your focus on one system and don’t stop until you master it, or you decide it is not lucrative.
2. Choose A Broker And Platform
Find a broker that you trust and that is approved in your country. Many brokers will say that they will give you a signing bonus and that they have almost non-existent spreads. Chances are those are scams based out of obscure countries with bad contact links. Do your homework and make sure you at least trust your money in their accounts.
MT4 or the next best trading platform? Make sure you find a trading platform that works with your trading strategy and lifestyle. Personally, I cannot live without the MT4 app. It helps me trade on the go and has great reliability. Two musts when it comes to trading technology.
Open a demo account to take them for a trial run before you give them your money.
3. Practice Money Management
Do you know how many dollars a .10 or .50 lot equals? Make sure converting pips into dollar amounts becomes second nature.
For example, you find a trade that works for you and now it’s time to calculate the pip size.
- You put your stop loss 50 pips away and your account has $2,800 in it.
- 2% of $2,800 is $56.
- If you have 50:1 leverage, your lot size is .01 for this trade.
4. Learn To Trade From Success And Mistakes
Track your trades! Winners and Losers. You need to get to know your system inside and out, including how often you win and what your longest streaks are like. After you get semi-successful you will start to notice what your most common mistakes are (bad money management, small stop losses, lack of patience, etc). Keep notes and learn from your mistakes before taking forex live.
5. Reach Your Goal
Set your sights on a goal and don’t stop until you reach it. This will build amazing confidence and give you a small milestone to reach before starting your journey as a successful forex trader.
When I first started my account it fell from $10,000 to $8,000 demo dollars. That would have hurt if it was real money. After losing hope and getting it back a few times, I decided that if, I could build it up to $12,000 – with proper money management practices – I would go live, and I did.
6. Take Your Forex Live
You are profitable on your demo account and you know how to keep your cool. Open a small forex live account and build it up from $100 to $10,000. It is always easier said than done, but you will always lose when you don’t try. Do your best to set yourself up for success and take the calculated risk.