Demo Account => Live Account

#1
Hi members,

Demo accounts in forex world is really a very good thing which we miss in other kind of markets. I have two questions regarding it :

Before opening a live account

  • How long did you practised with a demo account
  • How many $ you are able to make in the demo account (I understand the psychology differs with real and dummy money)
Experienced forex traders please respond. So that beginners like me will get an idea before jumping into the forest.
 
#3
Re: The 5 Phases of a Successful Forex Trader

You are welcome prabhu.

I will add few more things here, which I read in a book in the beginning of my successful trading career. I had committed my shares of blunders and goofed up a few times before I really introspected and found out what was wrong.

The five phases of a Successful forex trader: (Guys if you know in which book this is mentioned, please give the credits here, but request you guys not to shoot me for plagiarism :D )

1. Forex Trading is a Magic bullet:
A quick rich scheme, anyone who can shell out 250 $ can become a millionaire, without spending time or money. Normally the beginners, including me at some point, believed this. For the beginners Forex trading seems like the 'Ram baan' that's going to liberate them from all their financial woes. They dream of doubling the money every single day, and within a span of 6 months they would be among few certified millionaires in our country. The truth is unfortunately far from this.
If you are in this phase, run as fast as possible.

2. The Holy Grail Hunting phase:

In this phase we try thousands of different systems, indicators, strategies, robots etc. etc. trying to catch hold of that 'holy grail' that gives profit 100% of the time, with absolutely no failures, a system that give you profit right from the first pip to the last... etc. etc... people normally spend much time and money in buying and testing different systems, bu in vain. At the first instance of failure, they move on and test a different system.
If you are in this phase brothers run as fast as possible, this too is a very dangerous place to live in forex.

3. Failure: This phase is inevitable if you had been in the first two phases. This is the time when people start thinking that it is impossible to make money in Forex. its purely hype and marketing mix. The failed beginner thinks that people are making money by selling trainings, systems, indicators and such, but no one is making money trading forex.

This is the phase which one must cross, keeping in mind that there are many who make money in forex, though in minority. There is something that these minorities are doing that the majority is not. And the main goal for the beginner is to cross this bridge and get across.
Remember, great things are either achieved through 'Inspiration' or 'Desperation'. this phase provides you enough desperation to go for it.

4. Discovering Emotional Discipline:
The failure phase will give you enough insight to discover that it's the emotional discipline that was lacking in you, which was responsible for the failure. The markets always did exactly the opposite of what you think, or maybe, you did exactly the opposite of what the market was doing. Anyways, when I realized that it was the emotional discipline that I lacked, I started having more relaxed trades and the percentage of +ve trades too increased. But still I was unable to keep my cool and committed the same mistakes. Which bought me to the last phase.

5. Discovering Money Management:

Yes if I trade more than my 'aukaat' emotionally, then how on earth am i going to be disciplined. Money management is the most important thing in forex. This one advice will save you thousands of dollars.

I can surely say, An average system with money management and emotional discipline can anytime beat any so called holy grail systems of this world.

For me my system with money management and emotional discipline is no less than the Holy grail.

Treat forex just like any new business you would. Take is seriously, it's no gambling. People often say 'kitne lot ka khela' i.e. how many lots did you play with, it almost sounds like gambling.

If you follow the system, EM and MM, trust me you would be one of the minorities that make money in Forex.
Take care and God bless

Happy trading guys....
hi sir,
thnx for your precious inputs.
i was wondering if i can become one of your students.
which city are u frm? myself from mumbai.
 

PGDIMES

Well-Known Member
#6
I'm in Phase. 4

Can you direct me to any good reference of Money management?
Books by Ryan Jones & Ralph Vince on MM may come to your help. Dr. Van K. Tharp considers MM as mainly Position Sizing. All other books on MM only talks about stop-loss techniques or other anti-martingle methods.
 

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