Trade is one of the skills that takes time to learn. Think of it like boxing, as it also takes time to learn. If you enter a professional boxing circuit without any training, you will be physically defeated
Likewise, if you enter the Forex circuit without any training, you will be defeated financially
The similarities are that both examples are skills and both require psychological preparation. The difference is that one is physical or the other will be financial
We can overcome physical harm within a few days or weeks, but psychological damage can be devastating and affect us for the rest of our lives. It may not only harm our pockets, but it can also cause problems in our family relationship. So when we get into the Forex Circuit we must be ready
When a professional boxer enters the circuit where he has usually been trained safely for many years, this safe environment is where he can make mistakes without the need for medical treatment. He can compete with his competitors who have more skills and experience than he has and thus can learn and benefit from them. Also in this case he will have someone to watch and give advice and guidance. When he is ready, he enters the real boxing ring, accepts the risk and knows that he can be hurt, but he also has now studied his opponent well and has done everything he needs, and therefore he knows he has a good opportunity. Although he could lose this round as well, but if he wins in most rounds, he will win and go with the money to his home. But what about the psychological side? Is he afraid to enter the ring? Occasionally ! But he became aware of it and could control it the way it works. Will he think about the money he can earn? Or will he think of the battle as he spoke and plan his next moves during breaks? He will analyze the results of previous rounds and make the necessary changes in his strategy in preparation for the next round.
Can you know what to say later? If this is the case, you have learned to analyze what you read and form projections on the future (one of the very valuable skills of forex trading) The forex trader, like a professional boxer, will not enter the forex trading circuit without getting ready first. He may not spend years training on a demo account, but at least he will spend a month, two or even three dealing with the Forex market in a safe environment that will not cause him any harm. He will train forex trading against other traders to learn from them, and also he will have someone to watch and give advice and guidance. After that, when he is ready to enter the forex trading arena, he will trade real, now he accepts the risk and knows that he may harm him, but he also studied the Forex market and did everything necessary, so he knows that he has a good opportunity now. However, he may lose in this deal, but if he wins in most deals, he will take real money with him to the house. But ! What about the psychological side? Is he afraid to enter the Forex Circuit? Occasionally ! But he has become aware of this fear and can control it the way he benefits him during Forex trading. Will he think about the money he can make? Or will he think about the things that affect the market and plan his next deals while he awaits results? He will analyze the results of previous deals and make the necessary changes in his strategy or continue to activate the current strategy if she is working with him in planning for the next Forex deal.
So it is easy to say that forex trading with a demo account is something everyone must do before entering into a real forex trading account.
An account of practice will provide the trader with most of the necessary skills in order to trade profitably and thus have the ability to compete with others in the real trading arena.
But an important warning !!!
Just as a boxer, a forex trader will have learned how to manage his emotions, and this is usually ignored by new Forex traders. But perhaps this is what separates a successful trader from a loss permanently! If you are considering entering the forex trading circuit, if you are sure of training first and get all the information you need to control your feelings. Fear, greed and impatience are the main cause of all financial losses, so watch out for them and learn how to defeat them before you enter the ring with you. Understanding these feelings will enable you to use them to your advantage in understanding the market, because the market is affected by such feelings and if you understand them, you can bring them to your side and thus will give you an additional advantage.