Let me address a rather more v.important aspect to this concept of trading, all of course, in my humble opinion.
None of the traders are ready for trading. That is why there are protections. I would consider myself lucky that I can find brokers who’d allow me trade a demo account with nearly the same prices and executions (executions really does not matter on the higher time frame though a pip above or below my po or SL is no issue there) Again, I’d like to stress on the fact that LEARNING TO TRADE CORRECTLY is a necessary requirement before you decide to trade a live account. Going for live account without first completing for instance 5 batches of T20 principle would be, in my humble opinion, a very stupid and reckless thing to do. You’d rather give me your money. :p
Trading is a skill that requires a lot of practice. Its a VERY lucrative skill but it requires practice. You must first make sure you have the following things.
1. A Trading Strategy which gives you an edge [aims methods have this covered]
2. Acquire an in depth understanding of the above.
3. Gain practical experience in the above.
4. Demo trade the strategy and maintain a discipline score for each trade and batch of 20 trades. Do at least 5 batches ( 5T20’s)and maintain an average of 70% discipline score with none of the T20 batches less than 50% score (if a batch has less than 50% score, you might want to scratch that and repeat it).
This is a rough guide to How to become a Disciplined Trader.
I’d like to suggest that in order to become a profitable trader you have to follow at least 2 steps.
1. Learn to Trade using a demo account.
2. Learn to trade using a live account.
Not so difficult to understand is it? Just two steps. Now, by demo I don’t mean that you open a trade here and there and close it haphazardly. The idea is to recreate an experience and environment that is similar to the actual but without the RISK of losing money. This would give you that “stress free state of mind” the one that is “Risk Free”.
If you have not yet been able to keep at least a demo account and remained “disciplined” you cannot move forward. We see many players doing net Practice and they look fantastic but they fail miserably when it comes to “matches”. [cricket analogy]
Because during practice we lacked an important ingredient. FEAR/RISK. However to trade demo without Risk or FEAR factor is EXACTLY the purpose of Demo Trading. You want to perfect your skill so that it becomes “second nature”. So, to become the best at what you do, you don’t have to play as many matches as possible rather you practice as many hours as possible before you go for a match. So that you don’t have to “think” what to do next during the live event, rather you KNOW exactly what to do without “thinking”. Its your instinct.
[Are you telling me demo is waste of your time? then you don’t believe in or does not understand the concept of Practice. And Yes, you have to write one beautiful Trading Plan, before you can trade, Else every trade will be classed as Zero Discipline Score]
I’m trying to help the members who connect with me through Skype, and the hunt section of the forum, to become profitable by first becoming disciplined traders. In a way i’m selling the idea but the intent is purely to help.
cheers and hope this helps a little…
ps: i don’t care what leverage is there, its irrelevant until you have learned to trade correctly, you must first learn to trade. Just as I don’t care how expensive is Formula 1 car, first I need to acquire the skill to be considered for driving one. And I don’t have that skill so Formula 1 racing car is “of no value to me”. Fun to watch though, those who can.