The best results you will do if you’re not afraid of losing
Surely many of you are surprised and wonder how is possible to make so much money easily on demo accounts, but when it comes to real ones, you constantly lose? Well, to a seemingly complicated question the answer is quite simple; because on demo account you don’t have fear from loss.
In my point of view, this is probably one of the most important psichological issues in trading. You have to deal with yourself how to reduce the fear from loss and when you manage to solve that problem, you will become a constant winner on real accounts as well. Think of this issue hard and you will notice why something like this is so important and why there is a huge difference in between those two types of accounts, demo and real.
I always said, it’s much better to learn trading with $500 on real account, then with $100,000 on demo account. Why? Because, a demo account will give you a fake sense of security and comfort and when it comes to real account your mind will not be able to accept the real loss. You will simply be lost because you didn’t feel how the real loss affect your mind and your future trades. After the first real loss, especially if it’s big, you will feel pain and you will be afraid to enter in to the next trade. And that’s the most important thing in trading. In forex you can’t afford to be afraid and anyone who fears from loss simply can’t be the winner in this business.
I mean, each time when you enter in to trade you are taking a risk and you need to accept that loss is simply unavoidable, it could happen any time. That’s why you need to detect your losing point of no stress. What that means? It means, that the loss which is possible in each your trade will not disrupt you psychically. It means that after the loss you can continue with trading like nothing happened. It means that after the loss you have no fear from the next trade. That’s “the point of no stress”.
Sure, most of this depend on risk you’ve took, but I will not dedicate this post to risk, you can read about that in my RISK page, but exclusievelly on fear from loss. I know it’s related, because large loss is mostly the biggest problem which causes fear, but anyway. You need to be aware of fear and that the same can cause you a big problems in trading. That’s why you need to set yourslef a rules which can be acceptable and confortable for yourself. There is no general rules in this, because, someone can accept bigger loss from the other one, it all depens. We are all different as a persons and as a traders as well, so detect the point of no stress for yourself before it will be too late.
It takes time for your brain to accept any kind of loss, be aware of that. But, when you finally release the brain from fear of loss, you will become a winner and you will be able to make an outstanding results, you will make huge money by trading.
Forex is the hardest way to easy money. Yes, the money comes easy when you solve all the problems in trading, fear from losing is among the biggest ones. Remember, never trade with money you can’t afford to lose!
For the end of the article, I must write this. Sure, you must use a DEMO account at first, but just to get the insite of how everything works, to get the know the platform and all the advantages. My advice is to open a demo account with similar capital which you will invest latter for real, not bigger. That’s very important.