Learn Forex – Many traders think there are significant differences when they compare the results of demo accounts and real accounts.
Almost all traders find it easier to profit on a demo account. There are those who are so desperate that they blame the broker for their failure and accuse them of running an improper contract or manipulating the market when trading using a real account.
The truth is only your mentality factor when you get profit in the demo and is responsible for losses in the real account . I want to share tips to overcome this problem.
Have you ever transacted using real money? Remember if your heart beats faster when you open the first position on a real account?
From my experience, the reaction is normal when I first trade in the forex market.
Prepare yourself for trading with real money
Before you trade, you must realize that trading with real money means that you have lost money. This knowledge is important, so you don’t use the money you need for forex trading. In addition, you must set a risk limit per transaction (for example, 2% of the capital of your real account).
The fact is that we don’t always do what we plan. I myself as a trader who already has experience has also experienced a loss on a real account. Nobody is perfect.
The only difference is that when I trade with real money, I decide to concentrate ON ONLY TRADING IMPLEMENTATION , not on the account balance. This setting increases the results of my transactions.
Unfortunately many traders don’t realize when opening a real account, that they may lose money on each transaction.
After you open a position for the first time and the market starts to move against your position, you make trading decisions based solely on emotions.
Prepare yourself for future losses
Most people when they get loss cause negative feelings and emotions. I suggest that you prepare yourself and make friends with the thought that you might lose money on the market.
To limit losses, always place a stop loss on each of your transactions. Having a stop loss is much easier to receive than if the funds run out immediately.
I assure you that there are still many ways to succeed in forex trading, get used to it.
Do not always remember how much money has been taken from your real account in each transaction but how much profit you can get!
I believe that thinking depends on the strength of each trader, whether the loss affects him emotionally or not.
Only with the risk limits that you have set, you can protect yourself, and act uncontrollably that is against your own interests; that is, the long term and continues to generate profits in the market.
If you continue to manage risk for each transaction (for example, 2% of your account), you can stay calm and continue to monitor market movements.
Can you prepare for the worst possible demo account?
Do you do on a demo account have added value? Yes, for sure.
However, you must always be aware that transacting in the NO EMOTION demo. For that, you don’t need to wait too long to start a transaction on a real account.
The requirement is that you have a forex trading strategy that can bring you benefits in the long run. Test your strategy for about two to three months on a forex demo account before you open a real account and manage your risk management.
If you cannot add trading capital, for a while transact on a demo account until you are able to open a real account with a minimum deposit of 500 to 1000 $.
Because we now know that trading with a demo account, there is no emotion as in a real trading account, it is advisable to always bring your demo trading system to a real account.
Try to make your own trading experience as REAL as possible, because this is only the best way you can prepare yourself for trading with real money.
How do you handle your real account as if it were a demo account?
After you practice using your Forex demo account, to act emotionally and analyze objectively the market, you need to transfer this ability to your real account.
This is indeed difficult to run. But if you have a long-term goal, and always think that this will be profitable, you will succeed.
Below I will explain some of the things you should look for when you switch from a demo account to a real account.
Think of NO money at stake, so you don’t feel lost.
As mentioned above, you must use money for your real forex account, not the money needed for other important things. As with other businesses, investment can also be used to achieve long-term profits.
If you can assume that the money you invest in the currency market is “lost”, you will be much easier to make decisions objectively without being influenced by your emotions.
Think about making friends with losses on your transactions!
Many professional traders experience an average loss of 40-60% of their transactions. However, they can record profits according to the profit / loss ratio at the end of the month. So do not get caught up in the thought of losing money and accept this fact as part of this business.
A single Forex transaction also means for your long-term success.
Don’t always think about long-term goals and avoid making a single transaction. Even losing a trading day is not important for long-term goals.
I suggest you to think in a few weeks or months. This is one way to ensure that your goal view has a positive effect on your real account.
Ask yourself if you are ready before you experience a loss.
HOPE TO WIN AND MAKE SURE READY TO LOSE.
Use this setting to assume that at any time it can happen and is ready to face all possibilities on the market.
Your success is based on various transactions. If your win rate is around 50%, you can lose 50 of 100 transactions and the profit / loss ratio of 2: 1 reaches a profit that is comparable to your working capital at the end of the month or after a few months.
Do you have a forex strategy and trading plan?
Every action must be planned. Perhaps one of the best strategies to protect yourself from emotional actions in trading is to plan well every action and take every opportunity to account.
This is not to say that the plan cannot be changed. The ability to adapt in trading is very important to respond to unexpected situations. However, this must always be done in pursuit of long-term goals – continue to benefit from Forex trading.
Forex trading is harder than you imagine, even though your forex strategy has been tested and proven to be profitable in the long run.
For that, keep learning forex , I hope in my next articles, I can teach you how to look at the market, which allows you to after a period of practice without feeling guilty and confidence increases to open a real forex account and with your own ability to achieve long-term benefits fantastic length through Forex trading.