The lure of fast money and a leisurely lifestyle brings a large number of new traders into the marketplace on a daily basis. Unfortunately, many traders get a cruel lesson and a dose of reality after trading for a few days. It’s not as easy as the people who sold him the $50 trading course explained. I hear this several times a week.
Getting a start in trading is not as simple as many would have you believe. To be sure, 9 out of 10 novice traders empty their trading accounts within the first 3 months. There is a reason for this. To be an effective trader you must arm yourself with the tools needed to trade the e mini effectively. This includes rigorous study, extensive practice, and a devotion to learning. It’s a tall order; an order many new to the business are unable to fill. The truth is simple; in order to be a good trader you need to have spent some time trading and learning.
How do you do that?
First of all, you need to learn the system for trading that is time tested and works. Spend some time on some of the chat boards and search engines and see which educational systems are highly thought of and recommended. You will need to be diligent on this task as your education is the foundation for your success. The system you learn should be in the mainstream of educational thought as it relates to trading, and not a trading system promising untold wealth and instant success. There is no such thing as instant success.
Many individuals are under the impression that great traders are born with an innate ability to trade and profit. Nothing could be farther from the truth. The logic of the market is not the same as common sense and in many instances common sense will not serve you well in your trading career. Again, that’s why I recommend that you learn a system and practice that system until you are competent.
There are a wide variety of trading systems on the market and some are free, others are very expensive. I think the most important part of picking a trading system lies with how comfortable a trader is with the system. The system should be compatible with the new traders personality. By that, I mean to say that if a trader has a low level of patience, he or she should not trade a system that requires days and days of waiting before realizing a profit or loss from a trade. Intraday trading is the way to go for this type of individual. On the other hand if your personality type is one that is not impatient, perhaps the longer-term trades are the thing for you.
Finally, the system you choose should make you feel comfortable not ill at ease. In order to trade effectively you must believe and trust the system you are using. Of course, being comfortable with the system requires the novice trader to spend some time using it.
How can I get comfortable with the system and not trade?
Though many trading educators advise against it, I recommend that a trader learn to trade what they demo account. With caveats, though.
Practice doesn’t make perfect, perfect practice makes perfect.
It is very easy to develop sloppy and ineffective habits trading a demo account. After all, you are really not putting anything on the line. This is, in fact, the main criticism of demo accounts. And it’s a valid criticism. So my recommendation is simple, learn to trade by trading in the same manner you intend to trade with live money. That way, you will not develop sloppy technique. Further, I recommend that you trade on a demo account until you can put together several weeks of profitable trading. By that, I mean trading profitably over the course of a week. Once traders can clear this hurdle they are ready for a live account. Of course, a live account is traded much differently than a demo account. There is more at stake, and novice traders tend to fret over the balance in their account more than focusing on making good trades. So there will be a period of adjustment in the traders career as he or she transitions from a demo account to a live trading account.
Where can you get a demo account?
Most brokerages will set up a demo account for you, complete with a real-time feed. As I have said, use this demo account the exact way you intend to trade your live account. Anything less will have you trading poorly. Further, learn how to use the trading platform that comes with the demo account. There is no worse feeling than needing to exit a trade and not knowing how. You would be surprised at how many people dive into a new account without knowing how to operate the trading system and platform required.
In summary, my recommendation is to learn a good system and practice it until you are proficient. Don’t open a trading account and expect to trade profitably without first doing your homework.
I endorse a state of the art trading program for beginners at Trading Concepts, Inc It’s an awesome product that will have you well on your way to success. Plus, it has a money back guarantee…you have nothing to lose and thousands to gain.
Article Source