Thousands of forex beginners
excel in the trading of forex online while using a demo account. Yet only a
handful ever gets to open a live forex trading account. The rest simply
disappear either after reading broker reviews from bitter traders or when
bogged down by the strict account opening conditions set by their preferred
brokers.
The largest numbers of good traders
that never get to open a live forex trading account are
those that have read reviews about forex brokers. Trust me; if you read broker reviews and place
much emphasis on them you will never open a live trading account. Most of the
reviews are done by traders who have lost money and therefore often bitter and
fail to be objective on their criticism of the broker. But that does not mean
that brokers are angels. Whereas some are faithfully there as market makers,
others are also scammers and will disappear with your money as soon as you’ve
deposited with them. Read how forex brokers have turned
the tradingof forex into a scam to understand what I am talking about.
If the fear of falling prey to an
unscrupulous forex broker is what is keeping you away from opening a
live forex trading account, the diagnosis is simple. It is called
regulation. Do not open an account with a forex broker that is not regulated.
They tend to be scammers. There are dozens of regulated forex brokers that
offer great services and in case of a disagreement you can always have an
authority to report to. Most of these brokers have been in the game for a while
and would not love to tarnish their name by fleecing off a single trader.
Competition for traders is tough and the good will of existing customers is the
best marketing strategy.
Some forex brokers do also
tend to have strict rules when it comes to opening a live forex trading
account. There are those that require certified copies of your government
issued identity card and proof of residence. Matters get worse when these brokers
insist that a post office box cannot mean a proof of residence. What these
brokers fail to understand is that a lot of people especially from Africa
rarely have the sort of house labeling systems that work in the West. Some
brokers do however understand this predicament and can accept any utility bill
as long as it indicates where your location is. Other brokers go a step further
by demanding to see a prospective trader’s bank statement before allowing you
to open a live trading account. I have never really understood the need behind
this. I can only think that it is a way of checking whether a trader is worth
coercing into joining a “higher” traders club within the micro, mini and
standard account hierarchy.
If these are the reasons keeping you
away from opening a live forex trading account you can always find a way
around them. Simply ignore most forex broker reviews and as a basic
minimum start with a regulated forex broker. Do not deposit a huge amount of
money on the onset because your aim is to see the level of professionalism of
the broker. Concerning proof of residence you can always find a way to have
your name on a utility bill be it your friends or brothers water or electricity
bill. Proof of residence is simply aimed at curbing money laundering and as
long as your conscience is clear, I don’t see why you should not have your name
on a utility bill even when it’s not for your apartment.
The advantages of trading live as you demo trade
It is through trading a live forex account that you can master
the psychology of trading. Demo trading only helps you in the mastery of your
strategy. But it is an entirely different world when you begin trading a live
funded account. Once you have mastered a strategy on the demo account, try to
see if your emotions are well set to use that strategy on a live trading
account. When real money is involved we tend to think differently. While with
virtual money we may see a strategy and execute, on a real account we tend to
have doubts. Those doubts can only be cleared by starting small on a live
funded account.
Demo accounts rarely teach the beginner important lessons of money
management. 10,000 dollars of virtual money makes you reckless. It does not
instill financial discipline in you because there is nothing to lose. Money management
can only be learnt on a real account. That is where position sizing, leverage,
lot size and risk reward become essential. With a 10,000 dollar demo account
you can over-leverage and fail to determine risk beforehand. The real account
on the other hand instills financial discipline in you. That is unless you don’t
know what you are doing.
A live trading account is the only
way that a forex beginner can
determine the credibility of the forex broker. Execution in a demo account
might be faster than it is in a real account. You need to know whether or not the
speed with which your orders are filled in a demo account is the same speed
when trading a live account. That is only possible by funding a small amount
into your trading account and executing a trade.
A real account creates a personal commitment.
If on a demo you were only trading for fun or as a past time, a real account makes
you understand that there is actually profit to be made. That forex trading is after
all a business. This commitment can turn you into a determined forex trader in
a short while. Forex trading, if done with great expertise, can actually draw
the line between your current financial struggles and the search for
prosperity. And at times you only need a single trade to turn everything
around.
Go ahead and open your first live
trading account for prosperity becks in the horizon. Do not let it slip
away. Start small; probably with $ 100 and see to it that you have a
realistic target of the account growth. This amount will enable you to master
your emotions which are critical in the trading of forex. It will also enable
you to understand the aspects of money management and whether your broker could
be trusted.
Visit Forex Investigator to
discover some of the best brokers that we recommend you begin with.
0 comments
Post a Comment