Thursday, January 1, 2009

What Practical Value Does This Research Have For an Average Forex Trader?

With some exceptions (which we all wish to be a part of, but let’s be realistic), there will be no quick profits in Forex and no financial miracles.

Demo trading is a great and free way to test your Forex trading skills and practice as long as it is needed. Being serious about investing real money, means being serious about learning how to manage them in artificially created conditions.
But, let’s don’t forget about live trading!

Live trading is even much better way to learn about real challenges in Forex. Many Forex traders confirm that after trading with real money they had to revise their views about Forex trading.
It is highly advised to open a real trading account to get a taste of real Forex. Caution! Don’t rush in to earn money with your first live account, approach things wisely.

If your trading skills aren’t truly outstanding so that you can confidently manage large funds, do not invest a lot in your first live account. Consider you new live account as live-test account. Test your live skills by managing a small balance and trading the smallest lots possible(!): up to 1000-2000 units, so that your balance won’t be affected much even if your first trading attempts result mostly in losses. Find a broker that allows to open a mini account and trade with small lots.

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