Paper Trading Comes First

Everyone says that you should paper trade first, before putting in money into the market. This is sound advice however paper trading lacks the emotional pull and feel of real trading. If you want to put a small sum into the game then that is alright.If you believed that last sentence then you surely will fail. You must not put any money in the market until you prove profitable paper trading. Develop a forex trading system and follow it with discipline.

Step one: realize that it is not about winning and losing, trading in the forex market is not a game, it is not gambling. It can be a business in the proper state of mind. Adjust your mindset to profits and expenses verses winning and losing. Very few businesses can make money without having expenses.Step two: with this new mindset, where you are actually running a business, do what most successful businesses do follow a system. At a minimum you want to have a stop-loss entered on every position that you take. That is a tiny short-lived micro plan, which is way better than not having one at all. A well thought out plan gives you an advantage.

Here is a very easy thing to write, and a hard thing to do. Develop a competitive advantage. What makes you better than the next guy or girl. You can get lucky for a short while, but it will not last. Search and look for what your advantage will be, you can figure out what your advantage will be…. while you are paper trading.Oh, yeah, its 2011 who uses paper anymore,Demo trading comes first!