Yes. If you don't have proper understanding of what are you doing then you will fail miserably that is why skill and knowledge are essential part of trading.
I totally agree on that.
Ofcorse, you have to do that, else you 'll never understand forex. and once you finish with the basics, the next thing is demo trading.
LarsHansen
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Hei, hvor kan jeg lese hvordan jeg tar det første skrittet?
tradingout
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That is one good perspective. We all need to start from where, what and how.
First test your strategies on a demo account, If they turn out positive, then start trading on a real account, however don't quit demo altogether. You might need it for back testing. So be patient and keep practicing.
marcela 2020
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I know it is a thread from several years ago, but it is good to read them, I have good runners and I have been in it for some time, but in the same way I feel that I still have to learn a lot
TheScientificTrader
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I completely agree with this. There a million different ways to make money in the markets and none of them involve a "holy grail" approach to trading. I began learning about trading 3 years ago and have tried a lot of different trading ideas. Candle patterns was the first approach that I discarded.
If you are starting out, the first thing you need to do is study different trading philosophies and see which philosophy resonates the most with you. For me, I prefer reactive trading systems - i.e. those that do not try to forecast market movements. In my experience, traders that try to predict where the market is going become fixated on being right, rather than reacting to what the market is doing. As a result, they struggle to cut their losses short and ride their winners which is what good trading is about.
However, cutting your losses short and riding your winners is very difficult, especially if your trading strategy involves discretionary decision-making. Your goal should be to come up with a rules based trading strategy that takes the emotion out of trading.
Everyone thinks they can handle the emotional side of trading, but believe me, very few traders can control their emotions in a discretionary trading system
TheScientificTrader
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That's good advice- I demo traded for 18 months before going live. Before you even start demo trading, you need to identify which trading philosophy resonates with you. I am a systematic trend follower - I don't try to forecast market movements; I just make sure that I am in the trade when a big move happens. I follow set rules to minimise the emotional strain of trading and cut my losses short.
TheScientificTrader
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Hi Thabang, good on you for persevering- I know it's not easy to keep going when you've blown up 3 accounts but what you need to do is go back to the drawing board. Once you've identified a philosophy that resonates with you, you need to translate the principles you like into a viable trading strategy. From here you need to backtest that strategy manually at a portfolio level - I would recommend doing this for at least 10 years worth of data. The reason I say to do this manually is because you need to understand the intricacies of your trading system. You have to understand exactly how it works and have a written record of these so that you can go back and remind yourself of how the strategy works when things aren't going back to you.
Once you've backtested your strategy on a portfolio level (i.e. for all the instruments), you need to forward test the strategy on a demo for 12 months. This will teach you the practical aspects of trading and will train your mindset. It's very easy to trade historic data because you don't have to sit through the ups and downs. Demo- testing will hone your mindset and build on the confidence of your backtest.
From here you need to trade a small account. Depending on the number of instruments you trade, I would suggest at least £1,000 account. You now have the confidence from the backtest and demo built up. Now you need to learn to familiarise yourself with the added emotional pressures of trading with real money. Once you have profitably traded this live account for 1-2 years, you can trade with a bigger account. Now it won't matter what size account you trade with, because you are an expert trader.
TheScientificTrader
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Hi Sunny,
I would recommend trading for 12 months- but if you really cannot wait, then at least 6 months. Demo trading is important for a number of reasons beyond the practical lessons of trading. It helps you understand the intricacies of your trading system, it trains your mindset, it exposes weaknesses that you had not accounted for in your trading system. The final point is very important because if you come across something that you have not encountered in your demo or backtesting, you will lose faith in your strategy rapidly.
bsamons123
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I would say, start by learning the fundamentals of Finance and Economics. This way you will be able to at least separate the bullshit from the truth
AdamCantor
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yes and take ones time
That's most important. Gaining all sorts of knowledge and skills should be the first step, followed by other activity concerned. But first one should get done with the know-how.
Delilah_10
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True! spending quality time on learning is highly recommended for newbies. For a smooth journey its better to do things systematically than messing up later.
NVP
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sorry if i repeated this but interesting for beginners to see how cunning some scammers are
never believe "proven financial records".....and broker sites showing "qualified" results
www.youtube.com
never believe "proven financial records".....and broker sites showing "qualified" results
5 Forex Scams Used by Providers of Expert Advisors, Indicators and Trading Signals
Rimantas thinks everyone should watch these videos about Forex scams. When people know how scams work and how they are done it becomes easy to avoid them. ht...
www.youtube.com
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