How to Become A Forex Trader – Part 2
Let’s continue discussing on ‘How to become a full time Forex trader (Part 2). If you miss the part one, please read it first from here: ‘How to Become a Professional Forex Trader‘
I hope that you have read the first part carefully and now you know some of the important aspects of how to become a full time forex trader. Let’s move on to the next key aspects of it.
# Planning for Trade:
At this moment, you need to increase the strength of your trading strategy by making a perfect trading plan. A trading plan is a critical part to become a full-time professional Forex trader because it acts as a helping guide for you to follow. It acts also as a constant reminder of how to trade with your strategy. This will help you to stay dedicated and disciplined and also help you to avoid over trading. Emotional trading is the reason why many of us or most of the traders lose their investments in the markets. However, by creating a unique and effective Forex trading plan and strict onto it you can avoid the chance of being an emotional trader.
# Use of Forex Trading Journal:
Those who have records or tracks to their trades, they can easily turn trades into profits by avoiding the previous mistakes. You need to make a trading journal so that you can track your trades and see your Forex trading performance over time. Many Forex traders make Forex trading journals, but never use them or they use them for once or twice and forget about them after losing their first trade. You have to be more disciplined and stick onto your trading plan. And you have to understand and accept that, you are not going to win all of your trades. In this case, you have to find the reason of your leasing and update the trading journal so that you can avoid repeating the same mistake.
Do not treat trading as a game, it’s a popular business. And if you are trading with real money, then you need to treat it as a business. We all know that, all businesses have plans and they track their cost and profits. You need to do the same thing with your Forex trading business.
# Trading with Demo Accounts:
After mastering a single trading strategy with the perfect trading plan and having your trading journal ready, you are ready to participate in demo trading. Demo trading will allow you to get familiar with your broker’s platform and can give you the experience of the real trading system. Practicing on the demo account is very important because many traders make silly mistakes just because they are not familiar with the trading system like: how to input or close orders etc. You need to do more practice on a demo account because these mistakes can cost you if you trade directly with real money.
For the beginners, my suggestion is to practice more and more on a demo account until they are making profits consistently for three or more months. Till then never think to trade with real money otherwise you will lose your money. There is a difference between live Forex trading and demo account trading and it is 100% true. In demo trading, you are not investing the real money so there is no emotion involved in demo trading. But if you want to be a professional trader then you have to treat your demo-trading like a real account and the virtual money as real money. Because, it will do a great job of preparing you for trading with real money, which can save you real money and time.
Hope you understand the importance of trading plans, journals and demo accounts. You need to follow the guideline as I mentioned above. You have to learn these key aspects very carefully. I have divided this article into three different articles so that you can understand the importance of each and every key aspect and give mush think about them. Stay connected with me for the last part.