Forex Trading - Stress, Stress, Stress

So you want to be a forex trader. That's great, but it's not for everyone. I don't want to scare anyone away from the forex market through this article, but I just want people to see what kind of feelings and thoughts go through your mind while trading. Forex can be an extremely profitable career or just a way to make an extra few hundred bucks a month. It can also leave your account high and dry in a matter of moments.

It takes more than technical analysis and fundamental analysis to become a successful trader. Your mindset, or psychology, is equally if not more important than these other factors. I did not think this was the case when I opened my first live account. There is a huge difference between trading on a demo account and trading on a live account. The difference is the stress that goes along with a live account. Your using real money! This is why many traders do fairly well on a demo account, but when they open a live account everything falls apart. This is also the reason why the majority of traders lose their entire account the first time they give a live account a try.

So how can you help with the stresses in trading real money on your first live account. I recommend that you trade on a demo account for at least six months before opening a live account. This will help you develop a trading strategy. When you find a strategy you like, stick to it! Don't keep switching strategies back and forth. If you do this you'll never be a successful trader. It is so important to stick to rules in your trading strategy. I recommend writing all the rules of your trading strategy on paper so you can refer to them while trading. This will help relieve some of the stress of trading, because it becomes more mechanical. You don't want to get in the habit of trading on a gut feeling, you will end up going crazy! You should only make trades based upon what the market is showing you and if that fits into your trading strategy. If it doesn't, pass on that trade and wait for the next.