Assuming that you feel you're ready to delve into the forex market, take a step back right now and think this through fully: Do you have all the knowledge that you need? Do you have all the tools that you need? Have you at least gathered some experience with paper trading?
If you answered ‘yes’ to all three of the questions that we just posed, then you probably are ready to start trading for real.
However even though you’ve taken every preparatory step possible, the truth is that there is more to come – and the real learning process begins from the minute you make your first trade onwards.
For one thing, you’re now actually dealing with real money. Your money. And that is going to prove to feel different from back when you were just making paper trades with virtual money. Now you are really going to be risking something of value to you, and you’re bound to probably feel slightly apprehensive.
Frankly speaking, feeling apprehensive isn’t bad, so long as you don’t let it hamper your decision making process. If your apprehensiveness just makes you extra-careful, that’s fine. But if you find that you’re ‘chickening out’ of making trades that you knew were good but didn’t want to take a risk on, then you’re going to end up having a lot of regrets.
Also, now that you’re actually trading cash of your own, when you do make a loss the frustration factor is also going to be amplified tenfold. Once again, frustration in itself isn’t a bad thing, and can even help you to ensure that you don’t make the same mistake twice.
However if you let every loss that you make get to you, you’ll quickly find that you’re at your wits end and everything that seemed to be so easy while you were paper trading suddenly winds up feeling that much more complicated.
All said and done, the core point that we’re driving at is this: Paper trading and real forex trading are two different ball games. Sure, paper trading is an important preparation in terms of the skills that you require to play the forex market, but it is still just like a simulation, and doesn’t compare to the real thing.
But because you’ve gone through that simulation, you should have the skills that you need right there with you, and the only thing that is standing in your way is getting used to the emotions and pitfalls that come as part and parcel of trading for real.
Trust yourself and the experience that you’ve built up while you were paper trading. Imagine as though you were still doing that, and remember how successful you were at it. Then, try your best to emulate exactly what you were doing previously.
Sure, you might still fail here and there, but in the long run the actual mechanisms of the trades are no different, and so, sooner or later, you’ll find yourself starting to profit just like you did in the paper trading run.
Once you’ve accomplished that, you would have successfully made the transition!