Everyone thinks by trading the demo account, they can learn to trade the Forex market. Though practice makes a man perfect, it can’t teach you the details of trading the real market. Trading with real money is a different experience. The traders have to deal with emotions and many external variables. Does this mean we are wasting time in the demo environment? Demo trading gives the basic foundation of the traders. Without using the demo account, no one can become a skilled trader. After demo trading the market for a few months, the real preparation begins. Let’s learn some key steps that can prepare you to deal with the real market.
Save some money
Stop trading with small capital. Due to the understand capitalization problem, the retail traders are always taking the high risk to earn more money. They don’t even know why they are failing to support their families. They start using excessive leverage and eventually lose big trades. But if you start saving money from the starting of your trading career, you can expect to invest a decent amount at the end of the year. Once you have sizeable capital, you can expect to make big changes to your trading system. A few good trades can secure your profit and uphold your confidence level.
Don’t trade with borrowed money
Those who are thinking to trade with borrowed money is making the biggest mistake in their life. If you fund the fx trading account with the money that you can’t afford to lose, you will be under heavy pressure. The traders need to stay calm and execute orders without any stress. Things might be hard and it is very natural to become emotional after losing a few trades. But if you trade with your savings or the money that you can afford to lose, you won’t have any stress. This will help to recover the loss smartly.
Join the professional network
You will be trading the market as an individual investor but this should not keep you away from the professional trading community. The professional traders know the perfect way to execute the orders. They take a managed risk and execute a trade with precise knowledge. By joining the elite trader’s network, you will realize how the pro traders at Rakuten trade the market. Analyze their posts and follow them on the social media site. You will be able to keep yourself updated with the latest market news. Once you start to understand the flow of the market, the execution process will get easier.
Find a well-reputed broker
Being a new trader, you must find a well-reputed broker. It’s a part of your preparation. Choosing the unregulated and low-grade broker can ruin the career. You need to have a precise price feed and access to robust tools. During the market analysis, the tools should work without any glitch. But finding the best broker requires skill and understanding of the premium features. Since the new traders don’t have enough experience in this aspect, they can follow the experienced traders. Your funds need to be in the safe hands before you think of making a profit. Though the unregulated broker will provide a low-cost trading environment, still you have to ignore their lucrative features.
Be ready to lose
Last but not least, you must be ready to lose trades. Those who trade to win all the trades’ doesn’t have the quality of a trader. Trading needs to be done in a very organized way. Unless you have the skills to lose trades, you won’t be able to protect your capital. Focus on your risk management skills and try to find setups with a high-risk reward ratio. The risk to reward ratio acts as your recovery factors. And always try to find trades with the trend as it can reduce the losing orders. To be precise, stick to trends and trade with discipline.