Making the change from Paper Trading to Real foreign exchange trading

Assuming that you feel you are prepared to dig into the currency market, take a step backwards at the moment and think this through fully : do you have all the knowledge that you need?  Have you got 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 although you’ve taken each preparatory step possible, the truth is that there’s more to come and the real learning process starts from the minute you make your first trade onwards.

For one thing, you are now really dealing with real money.  Your money.  And that’s 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 hazarding something valuable to you, and you’re certain to probably feel a little apprehensive.

Overtly talking, feeling apprehensive isn’t bad, while you be careful not to let it hamper your decision making process.  If your apprehensiveness just makes you extra-careful, that’s's fine.  But if you find that you are ‘chickening out’ of making trades that you knew were good but didn’t need to take a gamble on, then you are going to end up having lots of regrets.

Also, now that you’re essentially trading money of your own, when you do make a loss the frustration factor is also going to be amplified tenfold.  Once more, disappointment in itself isn’t a bad thing, and can often help you to make sure that you don’t make the same mistake twice.

However if you let every loss that you make get to you, you can quickly find that you’re at your wits end and everything that appeared to be so straightforward while you were paper trading suddenly winds up feeling that much more complicated.

All noted and done, the core point that we are driving at is this : Paper trading and real currency trading are 2 different ball games.  Sure, paper trading is an important preparation vis the talents that you require to play the currency exchange market, but it is still just like a simulation, and doesn’t compare to the real deal.

But because you’ve gone through that simulation, you must have the talents that you need right there with you, and the only thing that is standing in your way is getting used to the emotions and problems that come as part and parcel of trading in reality.

Trust yourself and the experience that you’ve built up while you were paper trading.  Imagine like you were still doing that, and remember how successful you were at it.  Then, try your best to match precisely what you were doing formerly.

Sure, you may still fail here and there, but in the longer term the particular mechanisms of the trades are no different, and so, sooner or later, you’ll find yourself starting to profit just like you probably did in the paper trading run.

Once you’ve accomplished that, you would have successfully made the transition!

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