Most inexperienced traders are advised to begin trading using a demo account. While this may generally be a wise move, it's not always a good idea to demo trade all the time. In this article, I will discuss the role of demo trading, and its implications for everyday retail traders like you and me.
What Is Demo Trading?
Also known as 'paper trading', demo trading is essentially trading without using real money. Typically, this involves signing up for an account which tracks how much a trader would have profited or lost if he or she had traded with real money.
Is Demo Trading Always Advisable?
Generally, demo trading is a great place for new traders to familiarize themselves with the trading platform of their broker of choice. I've made many silly mistakes when I was demo trading and I'm glad I didn't have to pay for my mistakes with real money!
You definitely don't want to enter into a long position when your intention is to enter short. Sounds unlikely? Believe me, there are more traders that have made this mistake then they would like to admit.
A Demo Account can also be use to test Forex Trading Robots like Forex Autopilot Just to see the effectiveness of it.
Thursday, February 21, 2008
Monday, February 18, 2008
4 Essential Skills A Forex Trader Should Have
Many people think that Forex trading is an exciting and sexy activity. Unfortunately, this is only true for the losing traders. To the people who actually make money, Forex trading is a boring and dreadfully repetitive. Why is this so? In this article, I'll discuss what it takes to be a successful trader, and you'll understand what I mean.
Skill #1 - Self-Assessment
Good traders don't give excuses when trades go bad. They will always look within themselves and ask, "What did I do wrong?"; "How can I improve the way I trade?"
Contrast this with traders who play the blame game: "If only my wife didn't keep nagging at me, I would have been in the right frame of mind to avoid entering into this trade".
When thinking about a losing trade, poor traders say "If only this didn't happen to me". Winning traders say, "Next time, I won't make this same mistake".
Skill #2 - Discipline
This is so widely-talked about that I won't elaborate on it too much. Skilled traders have unbreakable discipline and will never enter into trades for emotional reasons.
Skill #3 - Patience
This ties in closely with Skill #2. Successful traders wait for the right moment to trade; amateur traders will enter and exit the market frequently because they can't differentiate between high-probability winning trades and low-probability winning trades.
Good trading typically involves a lot of waiting, and patience is required to keep our human impulse for excitement at bay.
Skill #4 - Money Management
While most amateur traders will focus their efforts on predicting future price movements, the experienced (and profitable) traders know that the most important component of their trading system is their money management rules. This is arguably the most important aspect of any trading system.
Skill #1 - Self-Assessment
Good traders don't give excuses when trades go bad. They will always look within themselves and ask, "What did I do wrong?"; "How can I improve the way I trade?"
Contrast this with traders who play the blame game: "If only my wife didn't keep nagging at me, I would have been in the right frame of mind to avoid entering into this trade".
When thinking about a losing trade, poor traders say "If only this didn't happen to me". Winning traders say, "Next time, I won't make this same mistake".
Skill #2 - Discipline
This is so widely-talked about that I won't elaborate on it too much. Skilled traders have unbreakable discipline and will never enter into trades for emotional reasons.
Skill #3 - Patience
This ties in closely with Skill #2. Successful traders wait for the right moment to trade; amateur traders will enter and exit the market frequently because they can't differentiate between high-probability winning trades and low-probability winning trades.
Good trading typically involves a lot of waiting, and patience is required to keep our human impulse for excitement at bay.
Skill #4 - Money Management
While most amateur traders will focus their efforts on predicting future price movements, the experienced (and profitable) traders know that the most important component of their trading system is their money management rules. This is arguably the most important aspect of any trading system.
Forex Autopilot System Review
There are plenty of ways to make money on the internet nowadays, but they usually require you to have your own product and website, which involves a lot of your time and energy and which is not even guaranteed to make you money.
Forex Autopilot System is a unique program that allows people who know nothing about trading on the forex market, to make thousands and thousands per month.
Forex Autopilot System was created by Mark Copeland, who starting trading forex 8 years ago. He was an analyst at Goldman Sachs's, and while he was there he researched the huge complicated system that the big boy uses to make killer trades for millions of dollars.
He has now researched and came up with the Forex Autopilot System, a simple piece of software able to run on your pc. The system only uses the most advanced technologies, running on hundreds of computers. The system runs on the Meta trading platform, which is the most famous trading platform in the forex world.
You can start with as little as $100 on a real forex account or learn the ropes on a demo account without risking any money at all.
Reliable and consistent, it works everyday even when you are not at home, because it is fully automated, which means you just watch it work for you.
Once your have downloaded the program it takes about 15-20 minutes to setup the system for it to be ready for trading.
With this autopilot system you can expect to make around 5-25% return per month. And that means with this system you can make 75 pips or 150 pips ($7500 or $15000) per month, it all depends on your trading capital.
If you are interested in learning more about the Forex Autopilot System you can do so by clicking here.
Forex Autopilot System is a unique program that allows people who know nothing about trading on the forex market, to make thousands and thousands per month.
Forex Autopilot System was created by Mark Copeland, who starting trading forex 8 years ago. He was an analyst at Goldman Sachs's, and while he was there he researched the huge complicated system that the big boy uses to make killer trades for millions of dollars.
He has now researched and came up with the Forex Autopilot System, a simple piece of software able to run on your pc. The system only uses the most advanced technologies, running on hundreds of computers. The system runs on the Meta trading platform, which is the most famous trading platform in the forex world.
You can start with as little as $100 on a real forex account or learn the ropes on a demo account without risking any money at all.
Reliable and consistent, it works everyday even when you are not at home, because it is fully automated, which means you just watch it work for you.
Once your have downloaded the program it takes about 15-20 minutes to setup the system for it to be ready for trading.
With this autopilot system you can expect to make around 5-25% return per month. And that means with this system you can make 75 pips or 150 pips ($7500 or $15000) per month, it all depends on your trading capital.
If you are interested in learning more about the Forex Autopilot System you can do so by clicking here.
4 Sure-Fire Forex Trading Tips
If you want to learn forex exchange then the 4 tips enclosed will help you achieve forex trading success. The tips are simple to learn easy to apply and will help you make great profits so lets look at them.
1. Success Comes From Within
This may seem obvious - but most traders fail to understand it and that's why there is such a huge market in people on the net telling you they can give you success all for a $100.00! Simply follow their automatic forex trading system and financial freedom can be yours. Of course, common sense tell you it's not true and its not. No one is going to give you money or success, you have to work for it and do your homework.
Forex trading relies on not just having a trading method but learning how to apply it with discipline. You will only ever be able to apply a method with discipline, if you have confidence in it and this means learning how and why it works and knowing why you will win with it.
If you don't have confidence when you hit some losses you won't be able to keep executing your system with discipline, so you have no system at all.
If you want to learn currency trading exchange correctly, then the first point to keep in mind is you're on your own and need to do your homework.
2. Keep It Simple
We live in a world where people admire complexity and cleverness - but it won't help you in forex trading and that actually is good news. The best currency trading systems are simple and you need to keep yours simple too.
Why?
The reason is - if you make a trading system to complicated, it has more elements to break and it will collapse in the brutal world of trading.
You can build a great forex trading strategy around: support and resistance, with a breakout methodology and a few confirming indicators and have a very robust method for success.
In forex trading your need a simple system that is robust and easy to understand, so you can have the confidence, to apply it with discipline, for forex trading success.
3. Do You Really Want to Make Money?
This may sound an odd question to ask but most people who set out to learn currency trading exchange don't appear to want to make money, they simply want the buzz of trading and act like gamblers.
How many novice traders for example try day trading as a methodology? Loads yet its guaranteed to lose money as the logic is flawed. Other traders trade news stories and chat in forums. These people don't have money making on their mind as their first consideration, its all about excitement and emotion and that's a sure fire way to lose.
If you want excitement then do something else, like go the casino - if you trade forex, you should trade to make money and that's it.
I know traders who trade less than ten times a year and yet compound 100 - 200 % or more per annum.
This is because trading frequently has nothing to do with how profitable you are. The high odds trades don't come around that often. To Enjoy forex trading success, you need to trade the high odds trades so be patient.
If you are patient and trade infrequently you will make far more money than the trader who trades all the time.
4. A Trading Edge
If you want to learn currency trading exchange the right way, you need to understand that you need a trading edge. A trading edge is something you have and will allow you to make FX profits, when 95% of traders lose.
You need to know, be able to define it, have confidence in it and be able to apply it with discipline.
If you don't know what your trading edge is, you simply don't have one and its back to learning currency exchange until you do.
Anyone can learn currency exchange the right way and if you do it correctly and you take all the above points into consideration when devising your forex trading strategy, you can enjoy long currency trading success.
1. Success Comes From Within
This may seem obvious - but most traders fail to understand it and that's why there is such a huge market in people on the net telling you they can give you success all for a $100.00! Simply follow their automatic forex trading system and financial freedom can be yours. Of course, common sense tell you it's not true and its not. No one is going to give you money or success, you have to work for it and do your homework.
Forex trading relies on not just having a trading method but learning how to apply it with discipline. You will only ever be able to apply a method with discipline, if you have confidence in it and this means learning how and why it works and knowing why you will win with it.
If you don't have confidence when you hit some losses you won't be able to keep executing your system with discipline, so you have no system at all.
If you want to learn currency trading exchange correctly, then the first point to keep in mind is you're on your own and need to do your homework.
2. Keep It Simple
We live in a world where people admire complexity and cleverness - but it won't help you in forex trading and that actually is good news. The best currency trading systems are simple and you need to keep yours simple too.
Why?
The reason is - if you make a trading system to complicated, it has more elements to break and it will collapse in the brutal world of trading.
You can build a great forex trading strategy around: support and resistance, with a breakout methodology and a few confirming indicators and have a very robust method for success.
In forex trading your need a simple system that is robust and easy to understand, so you can have the confidence, to apply it with discipline, for forex trading success.
3. Do You Really Want to Make Money?
This may sound an odd question to ask but most people who set out to learn currency trading exchange don't appear to want to make money, they simply want the buzz of trading and act like gamblers.
How many novice traders for example try day trading as a methodology? Loads yet its guaranteed to lose money as the logic is flawed. Other traders trade news stories and chat in forums. These people don't have money making on their mind as their first consideration, its all about excitement and emotion and that's a sure fire way to lose.
If you want excitement then do something else, like go the casino - if you trade forex, you should trade to make money and that's it.
I know traders who trade less than ten times a year and yet compound 100 - 200 % or more per annum.
This is because trading frequently has nothing to do with how profitable you are. The high odds trades don't come around that often. To Enjoy forex trading success, you need to trade the high odds trades so be patient.
If you are patient and trade infrequently you will make far more money than the trader who trades all the time.
4. A Trading Edge
If you want to learn currency trading exchange the right way, you need to understand that you need a trading edge. A trading edge is something you have and will allow you to make FX profits, when 95% of traders lose.
You need to know, be able to define it, have confidence in it and be able to apply it with discipline.
If you don't know what your trading edge is, you simply don't have one and its back to learning currency exchange until you do.
Anyone can learn currency exchange the right way and if you do it correctly and you take all the above points into consideration when devising your forex trading strategy, you can enjoy long currency trading success.
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