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3 Things You Should Know Before Starting Live Forex Trading

Despite the fact that online brokers make forex trading accessible to almost anyone, not everyone has what it takes to become a successful Forex trader. Trading forex does not require any professional or educational background – it’s a self-taught skill. The following are the 3 crucial things to consider before you make the switch from demo to live Forex trading.

Don’t trade unless you’re committed to lifelong learning.

There’s no assurance of a winning strategy in Forex trading, and even experienced traders sometimes cannot predict the exact market turn. Having a consistent profit in the Forex market requires constant learning and development. You also need to be well versed in utilizing different tools, techniques and strategies as you trade because the results vary from person to person, and sometimes you have to create your own plan.

Don’t trade if you can’t afford to lose.​

Forex traders are often interested in the forex market due to the potential for big profits. Trading forex won’t help you escape a tight spot if you are already in one. If you are already in a tight spot, it is more likely that trading forex will make it worse. As already mentioned, it can take years to become a consistently profitable trader, meaning traders are likely to suffer losses along the way.

Don’t trade if you approach Forex like gambling.​

Speculating on the forex market requires you to be comfortable with risk. Though traders are similar to gamblers in some ways because they can win or lose money depending on certain decisions, trading isn’t gambling, there’s a difference. Successful Forex traders implement fundamental and technical analysis, indicators, charts, and strategies to forecast market movements, whereas gamblers are not required to do so.

How to Switch from Demo to a Live Forex Trading Easily?

Having now learned what to do and expect in demo trading, you can now transition smoothly from demo to live Forex trading by following these tips:

1) Make a small deposit, to begin with:

The first (few) trading accounts you open are likely to suffer losses, so make sure you trade with money you can afford to lose. However, you need to be sure that the money you are losing is worth it. As a result, you know the causes of your losses and how to stop them. You will stay in this loop for a very long time if you lose money without learning your lessons.

2) Start with a Micro or a Cent account:

The best part about switching from demo to live Forex trading is that you don’t have to wait until you become an expert in Forex to get started in live trading. Even as a beginner, there are many ways to start trading Forex without losing much of your investment capital. A good example is the Forex Cent account.

Opening a cent account could be a good choice for novice traders who are interested in learning more about forex trading and experiencing the real market without risking significant funds. To put it simply, a Forex cent account enables you to trade with smaller transaction sizes than regular accounts since it is measured in cents. That is, 1 USD = 100 cents. With this, anyone can enter the forex market and begin trading with very little capital since the minimum lot size is 0.01 lot.

A cent account is perfect for testing and developing forex trading strategies. Low-risk trading allows you to experiment with different trading strategies while sharpening your skills and gaining experience at the same time. You will, however, only be able to achieve smaller gains with smaller capital. Forex cent accounts aren’t the best option if you’re trying to gain larger profits. As you gain experience, you can then move to a standard forex account and take advantage of the Forex bonus offers offered by the broker.

3) Don’t just focus on the money:

It is important to focus on the right things when you are just starting out with live Forex trading. Developing discipline, trusting your rules and your system, building a trading routine, and developing a passion for trading should be your top priorities.

Take time to understand your motives, try not to set yourself unrealistic expectations, and avoid over-critiquing yourself. Take your time and enjoy the process. With a conservative money management approach, you can lay a solid foundation at the beginning, which you can then leverage in the future.

4) Be open to Change and Adapt:

Forex markets are known for their fluctuating and ever-changing nature. It means that even top traders’ most successful plans must be constantly updated and adapted.

Staying flexible and adaptable will help you keep up with market changes and remain profitable no matter what the market conditions are. Develop a successful trading mindset that can help you avoid losing money and stay on track to success.

Original Article: When You Can Move from Demo to Live Forex Trading Account

Disclaimer: This post is from Aximdaily and it is considered a marketing publication and does not constitute investment advice or research. Its content represents the general views of our editors and does not consider individual readers' personal circumstances, investment experience, or current financial situation.
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