Starting currency traders are suggested to
trade on a practice account as opposed to staking cash on a real account. Article
gives you a couple of methods how you can perfect your practice trading experience:
Imagine you are trading for real money
What if you were trading your hard earned cash
and not some fake demo money? Imagination will make you treat this activity as
a business, not as some gambling experience. And you will not risk so much as bankrupting
your account right away.
Trading with fake money gives you an illusion
that trading is easy, this is really not. You have to change your mental
attitude to make your demo trading work.
Some traders do that by using various
punishments on themselves. They might force themselves to put significant
amount of money to a saving box when they lose on a demo. This would sober them
up and make more careful next time.
On the other hand you can self indulge if you
win on a demo trade. Allow yourself to do something that you really like when
you have a few consecutive winners.
Evaluate yourself.
Although trading is not some kind of
university, you can make it similar to it. At the end of the day try to give
yourself a grade. Chose the scale of your evaluation: A, B, C, D, E. Or any
other way you want. Then give yourself an evaluation if you made a trade that
day. See if you get better at your trades after some time.
Remember that this business is a never ending
learning. You need to improve all the time. Do not forget that you will always
have losses and those will be changed by profits, so make the most of it by
continually perfecting your trades. Work about your mistakes till your profits
become much bigger than your losses.
