Why You Must Know These Things Before You Start Trading

Why You Must Know These Things Before You Start Trading
Why You Must Know These Things Before You Start Trading



Why You Must Know These Things Before You Start Trading

Start trading

Now it's time to experiment on several different platforms. Experience doesn't just make you understand ambiguous of trading, but provides you with knowledge of how different platforms work, and how you can place an order before Entering into live trading. At that point, you build confidence in the basic knowledge of trading and choose any method. Tadawul works for you.


Demo trading

This is the practical implementation of your theoretical knowledge, so you start getting acquainted with different platforms, currency pairs, and trading techniques. Demo trading is your first step in knowing how to determine your decision-making time, and putting it into practice. From what you have learned until now.

Here are 5 simple steps to get you started:

The first step.

Download a demo account from any reputable brokerage company (the company will provide you with a guide to help you learn how to work.

The second step.

Start by pressing the buttons. This is not a joke, it is the best way to understand how anything works. So don't worry About spoiling anything or losing your money. This is a demo account, and it assumes that you will make some mistakes.

The third step

Focus on what you already learned. Execute the various commands you have learned, and practice how to modify or cancel them. luck Differences between the spreads of different currency pairs. Learn about the differences provided by the company, and whether it provides Standard or partial differences. Test their rollover policy. Of course, you will learn about the size of the contracts that are available They have (standard, mini, or micro).

The fourth step

After mastering the mechanics, you can use the demo platform to test different trading methods. And then you decide Your trading personality. You can also think about what you will do during live trading. And you specify the amount of money that you will risk in it Your position. You will also learn about your preferred method of managing money.

Fifth step

It is very important to remember that demo trading is not the same as real money trading. Demo trading. You can calmly keep your $10,000 profit or lose it. But in the real account, You will lose your nerve when dealing with a profit or loss of $100. Live trading is what shows how your feelings will affect you. on your decisions, which is the most important thing. All long-term traders know the importance of controlling emotions. This is considered difficult to master.


mini account

After you get better with the demo account, you can use the mini account, as most forex traders prefer it. The mini account. The mini-accounts were initially designed for those who did not have enough risk capital. required for real accounts, due to their small lot size reaching 10,000 units, instead of 100,000 units. Despite this, mini-accounts have recently become a source of attraction for larger traders.
Those accounts better divide their positions according to the trading strategy used.

Note: Micro accounts can turn into a slippery corridor causing huge losses, so they should not be underestimated. Sometimes young traders have difficulty with discipline when trading on mini accounts, and accumulate mini lots, to find themselves trading with a standard contract size, and this happens to traders who do not know the extent of the power of controlling Emotions in decisions when trading.

One more thing

Trading will give you a lot of things to read, and even more things to do. Trading success, In the long run, it is the product of an ongoing process, not a specific destination at which action stops. While trading, You will win and lose, and in the process, your wits and ego will be tested in a way you've never felt before. hold on to you, Recognize that your work is endless. Here lies the beauty of trading, and the reason we love to be a part of it.

Discipline

Discipline is the key to success, that's what any successful trader will tell you. Everyone has heard the phrase “stop your losses, and take your profits.” It runs.” However, many traders do not work with it. Many cling to losses, hoping that the situation will eventually reverse. But what is happening is the inflation of the losses. Those irrational decisions are based on emotional reactions and have nothing to do with it. with your trading plan. You must pay attention and determine when such decisions come to you and are sure to escape from them.


Why You Must Know These Things Before You Start Trading
Why You Must Know These Things Before You Start Trading


It's not about being right

It's not about being right, it's about making money. So, if you find yourself stuck in several deals
successful, focus on the wrong thing. Of course, we all want successful deals, since this is how we make profits. But Only 40% of the traders who make profits are correct, while others are correct with 70% of their profits. time. This is based on risk management, so get in the habit of re-evaluating your trading decisions, and get in the habit of being sometimes in error.

From one transaction to another

It is natural to sit on the sidelines, in fact, you will find the right decision in many cases is to sit on the sidelines. margin. Many times traders believe that they should always be in the market, while patience is all that matters. they need. Spend that time observing the market, developing trading opportunities, evaluating your trading plan, or enjoying your life only.

You depend on the creditworthiness and reputation of the trader

Retail forex brokers do not have the guarantee of a clearinghouse or platform. The money you deposited In forex trading contracts is unsecured, and you do not get the priority of declaring bankruptcy. Even if the broker deposits money to customers with a bank covered by FDIC rules, these accounts are not protected if The broker was exposed to bankruptcy.


There is no market site

Unlike futures trading platforms that are subject to regulatory rules, in the case of forex trading, there is no central market. Buyers and sellers meet. Forex brokers determine the price of executing the deal, you totally depend on the integrity of them people.

Forex trading has nothing to do with getting rich quick

Short-term trading is not for amateurs, and it rarely leads to a 'get-rich-quick' path.
You cannot make huge profits by exposing yourself to huge risks. And if your trading strategy has High risk involved, this means that you will suffer inconsistent performance and large losses. And whoever takes that path from Traders does not have a strategy unless you call gambling a strategy.


Forex trading is skill that takes time to learn

Learn this by heart: There are no shortcuts in forex trading. It takes a lot of time to master trading in this market. Skilled traders can and do make money. However, success here is not It is achieved overnight, as is the case in any profession or field. Forex trading is not as easy as eating a piece of cake. (as some people think). Keep in mind that if it were that easy, everyone in the market would be the owner of Millions. In fact, even the most experienced traders experience periodic losses.

Do not open a live account before you can make profits on your demo account.

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