Am I ready to go live? | Forex Factory

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Am I ready to go live?

  • #1
  • First Post: Oct 10, 2006 5:03pm Oct 10, 2006 5:03pm
Hi,

Initially I spent some time with a friend of mine who makes quite a bit of money doing Forex. He taught me the basics. I worked with him on his account and saw what he is doing. I have have now spent three weeks with a demo account making an average of about $200 per day. I have more days with small losses than ones with big wins, so I am being very careful. Sometimes I grind my teeth when I see what I could have made if I had dared to stay in longer, but I have been able to control my urges.

I am using a commercial signal service my friend showed me which cost about $175 per month, so that will come off my bottom line.

I will also say that the $5K I will be using is money I can live without since it comes from sold stock. I am willing to take the risk loosing it (and so is my wife..

I wonder if I now should consider myself ready to go live? My friend has told me as long as I keep it simple and do not get tempted to try to make big risky trades I am good to go. What do people around here think is enough practice before going live? Am I ready?
//C
  • #2
  • Oct 10, 2006 5:23pm Oct 10, 2006 5:23pm
Quoting cdysthe
Hi,

Initially I spent some time with a friend of mine who makes quite a bit of money doing Forex. He taught me the basics. I worked with him on his account and saw what he is doing. I have have now spent three weeks with a demo account making an average of about $200 per day. I have more days with small losses than ones with big wins, so I am being very careful. Sometimes I grind my teeth when I see what I could have made if I had dared to stay in longer, but I have been able to control my urges.

I am using a commercial signal service my friend showed me which cost about $175 per month, so that will come off my bottom line.

I will also say that the $5K I will be using is money I can live without since it comes from sold stock. I am willing to take the risk loosing it (and so is my wife..

I wonder if I now should consider myself ready to go live? My friend has told me as long as I keep it simple and do not get tempted to try to make big risky trades I am good to go. What do people around here think is enough practice before going live? Am I ready?
It's a bit like the guy who fronts up to buy a Rolls Royce and asks what its fuel consumption is. If you're asking the question, I'd say you're not ready. Most new traders spend 6-12 months on demo before considering go-live. But if you want to go live anyway, really focus on the discipline and money-management....which is far more important for your survival than the mechanics of how you trade.

Good Trading....
  • #3
  • Oct 10, 2006 5:38pm Oct 10, 2006 5:38pm
Quoting Flyn
It's a bit like the guy who fronts up to buy a Rolls Royce and asks what its fuel consumption is. If you're asking the question, I'd say you're not ready. Most new traders spend 6-12 months on demo before considering go-live. But if you want to go live anyway, really focus on the discipline and money-management....which is far more important for your survival than the mechanics of how you trade.

Good Trading....
Thank you for good advice. I am in no hurry. When it comes to the excitement of trading I get more than enough of that doing the demo, and one of the things I have learnt is that there's more to learn in this field than I ever dreamed of. I find it very interesting though since it's a mix of psycology, dicipline, planning and prediction. I have no plans when it comes to making Forex trading my living. It's a way to learn something new and maybe make a little on it while doing so.

I have to add that I truly enjoy reading this forum and thank you again for pointing me in the right direction!
//C
  • #4
  • Oct 10, 2006 5:43pm Oct 10, 2006 5:43pm
3 weeks of demoing is not enough. Many people would jump into the game because of a successful demo, which will result in you losing (unless you are really good at this), i included, wait til you have 3 months of solid demo with your HONEST style of trading. Trading is a personal game which requires psychological understanding and oneness with truthfullness with yourself. Live is a totally different game than demo.
  • #5
  • Oct 10, 2006 5:57pm Oct 10, 2006 5:57pm
I would say that , even if you go live , go Live with small micro lots. Demo trading is mostly to get a feel of the platform, the market and your system/method. Live trading with micro lots is a good starting point to feel the waters. There is a lot more experience,fun and education when real money is involved.

You will learn from your experience and even if you lose , you will certainly live for another day.
  • #6
  • Oct 10, 2006 5:59pm Oct 10, 2006 5:59pm
Quoting hunter101
3 weeks of demoing is not enough. Many people would jump into the game because of a successful demo, which will result in you losing (unless you are really good at this), i included, wait til you have 3 months of solid demo with your HONEST style of trading. Trading is a personal game which requires psychological understanding and oneness with truthfullness with yourself. Live is a totally different game than demo.
I guess you by "honest" mean keeping track of losses and profits and not trick yourself by overlooking losses telling yourself you won't be that stupid once you're live? While doing the demo account I have had a few days in a row with smaller losses. I have to admit that it has been tempting to just delete the demo account and start another pretending it didn't happen. With a live account it's no easy way out, I am trying to get the right mindset in place as well, and that will probably take some more time.

I will keep on practicing keeping track of everything I do for as long as it takes. Thank you for sound advice.
//C
  • #7
  • Oct 10, 2006 6:01pm Oct 10, 2006 6:01pm
Quoting cdysthe
Hi,

Initially I spent some time with a friend of mine who makes quite a bit of money doing Forex. He taught me the basics. I worked with him on his account and saw what he is doing. I have have now spent three weeks with a demo account making an average of about $200 per day. I have more days with small losses than ones with big wins, so I am being very careful. Sometimes I grind my teeth when I see what I could have made if I had dared to stay in longer, but I have been able to control my urges.

I am using a commercial signal service my friend showed me which cost about $175 per month, so that will come off my bottom line.

I will also say that the $5K I will be using is money I can live without since it comes from sold stock. I am willing to take the risk loosing it (and so is my wife..

I wonder if I now should consider myself ready to go live? My friend has told me as long as I keep it simple and do not get tempted to try to make big risky trades I am good to go. What do people around here think is enough practice before going live? Am I ready?
No, you're not ready. You've walked in the half inch of water that laps up on the beach. When you go live, you will be 100 yards offshore, and you're feet won't be touching bottom.

However, there is a way to make the transition easier. You must have a micro account. This will let you trade 1K lots. Make your first 20 trades with a position size of only one micro lot. For every 20 trades where you show a profit, you can increase your position size by 1 additional micro lot until you've reached the position size allowed by your money management method. If you have twenty trades and don't have a profit, decrease your position size by one micro lot.

You won't make much money, but then that isn't your objective. Your objective is to learn how to trade while gradually introducing the wacky emotional rollercoaster that comes with using real money.

Dial
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  • #8
  • Oct 10, 2006 6:25pm Oct 10, 2006 6:25pm
I wouldn't. Personally I spent three months studying and trading with a demo account. The last month I had opened a new demo account to trade "as if" it was real money, and I doubled the account in that time, always using good money management rules (5% in my case).


When I decided to "go live" I opened up a super-mini account with $250. My plan is to trade that for 2 months and then evaluate. Today is exactly one month since I opened that account and I am "up" 82.7%. Now, I had been up as high as 84% before I made some HUGE mistakes and found myself on the negative side. I clawed my way back to 80% before I had another bad day and dropped down to +54%. Now I've crawled my way back up again.

The point is that it is easier to stomach the mistakes with $250 at risk than it will be with $5000 or more. My suggestion is to study, study, study and demo, demo, demo for a few months. A good rule of thumb is to make 300-500 demo trades before you ever think of going live. When you do, transition over to a small micro or super-mini account first for a couple months and then evaluate.
  • #9
  • Oct 10, 2006 8:21pm Oct 10, 2006 8:21pm
Hi,

This is a post from Diallist a long time ago, but it's really great if you read it.

http://www.forexfactory.com/forexfor...ote=1&p=116857

After you read it, I want you to ask yourself first, which stages are you on (obviously not step 5 though)?

If you're on the step 1/2, I think you're still not ready to go live. But, trading micro-mini account would be the best starting point even if it's only $250. Losing $250 would never hurt if you learn something from it.

Best wishes,

- SkYliNe -
"Even the word impossible says that I M possible"
  • #10
  • Oct 10, 2006 10:20pm Oct 10, 2006 10:20pm
Quoting SkYliNe0511
Hi,

This is a post from Diallist a long time ago, but it's really great if you read it.

http://www.forexfactory.com/forexfor...ote=1&p=116857

After you read it, I want you to ask yourself first, which stages are you on (obviously not step 5 though)?

If you're on the step 1/2, I think you're still not ready to go live. But, trading micro-mini account would be the best starting point even if it's only $250. Losing $250 would never hurt if you learn something from it.

Best wishes,

- SkYliNe -
Thanks! I tried to click on the link but got a forum reply interface, not the intended information. Did you put in the right link?
//C
  • #11
  • Oct 10, 2006 10:28pm Oct 10, 2006 10:28pm
Quoting cdysthe
Thanks! I tried to click on the link but got a forum reply interface, not the intended information. Did you put in the right link?
No, because it's a reply to this thread.
  • #12
  • Oct 10, 2006 10:41pm Oct 10, 2006 10:41pm
Sorry, guys... Here is the link:

http://www.forexfactory.com/forexfor...t=steps+trader
"Even the word impossible says that I M possible"
  • #13
  • Edited Oct 11, 2006 12:04am Oct 10, 2006 11:29pm | Edited Oct 11, 2006 12:04am
When you can launch a bottle rocket out of your ass you're ready to go live.

Like this: http://www.youtube.com/watch?v=cfySGyBJxok

When you can fire one out of your pee hole you're ready to actually make money trading currency.
How you act is more important than how you feel.
  • #14
  • Oct 11, 2006 12:20am Oct 11, 2006 12:20am
From a risk averse point of view, here are my benchmarks:

1) Consistent profitability for at least 3-6 months (demo)
- in this stage, I do my studies for the 3 Ms of trading (Money, Mind, Method)
2) Open a micro account
3) Open a mini account
4) Open a standard account

This of course is the course I see fit in my situation.

So as to your question whether you're ready to go live or not... Sure, go live but I'd also go with the suggestions of others to open a micro account and trade in micro lots (1000 lots) sizes.

More trades and a longer period for learning.

Then have plans on what to do when you lose 25%, 50%, etc of your capital. Or what you plan to do when you gain 25%, 50%, etc. of your capital.

Just a friendly reminder to not go into the hole of losing/busting your account.
A truth I learned - trading can be learned without busting an account.

You seem to have a certain detachment from money which is good.
It'll help in being objective about trading.

Well, I guess, that's all I can come up now. Hope you were able to get something from it.

East
  • #15
  • Oct 11, 2006 12:24am Oct 11, 2006 12:24am
This is very important...specially the "wife" part...

Quoting cdysthe
Hi,
I will also say that the $5K I will be using is money I can live without since it comes from sold stock. I am willing to take the risk loosing it (and so is my wife.. practice before going live? Am I ready?
  • #16
  • Oct 11, 2006 12:32am Oct 11, 2006 12:32am
Quoting eastmaels
You seem to have a certain detachment from money which is good.
East
Because it will certainly become detached from you on numerouse occasions.

Funny haha but a fact none the less and you are going to have to learn how to deal with it.

If you have 5k to lose and not worry, put 2k in a mini and trade small lot sizes until you can Prove {to yourself} you can make it grow.
A 5k account that drops to 1k will eventually be wiped out by psyche, fear & panic whereas a Second New 3k account {blown previous 2k} will stand a much better chance of survival.
  • #17
  • Oct 11, 2006 3:20am Oct 11, 2006 3:20am
yeapi,...divide your account by 2...and make it 5 k,...let it be in your mind that you already lost 2.5k,...and u got to make it 5 again,..or your wife will kill you!

I was on real for 2 month,...but i lost all made profit in 2 days,...so be carefull, to manage your greed and fear...when your wife wont be at home ...!,...if u made 800 buks,...go for a break,...before reenter...
its just money
  • #18
  • Oct 11, 2006 4:40am Oct 11, 2006 4:40am
Quoting cdysthe
Hi,

Initially I spent some time with a friend of mine who makes quite a bit of money doing Forex. He taught me the basics. I worked with him on his account and saw what he is doing. I have have now spent three weeks with a demo account making an average of about $200 per day. I have more days with small losses than ones with big wins, so I am being very careful. Sometimes I grind my teeth when I see what I could have made if I had dared to stay in longer, but I have been able to control my urges.

I am using a commercial signal service my friend showed me which cost about $175 per month, so that will come off my bottom line.

I will also say that the $5K I will be using is money I can live without since it comes from sold stock. I am willing to take the risk loosing it (and so is my wife..

I wonder if I now should consider myself ready to go live? My friend has told me as long as I keep it simple and do not get tempted to try to make big risky trades I am good to go. What do people around here think is enough practice before going live? Am I ready?

HI , cdysthe,

Playing demo more than one month is big mistake . go live as soon as possible . live trading is a bit different . play small lots but live forget demo .
what you should gather now is experience of live trading .
money management is my best advice .

take care
  • #19
  • Feb 15, 2007 6:28pm Feb 15, 2007 6:28pm
I would go live and make sure your risk per trade is as close to 0% as possible.

Demo accounts are useful to practice ideas, strategies and test out trading platforms.

I assume you already have a strategy you have thoroughly backtested and not that you are trying to find a strategy by demoing.

If you have a simple plan with clear rules and criteria for entry, stop, trailing stop, target, when to stay out of the market, etc...i wouldn't be wasting too much longer with a demo.

Go live with real money and start trading for real. You are going to lose money. You are going to make mistakes. Many of them. You are going to experience all types of feelings related to trading, such as greed, fear, euphoria, anger and frustration.

And guess what? If you survive the early stage, there still are many mistakes to be made. It's an ever-ending learning process. It's the longest journey of your life and the most realistic one, simply because you are going to have to face the worst part of yourself every single day. Yet, it's the most challenging experience you'll ever face in your life.

Go live, what are you waiting for? Brush that hesitation off your shoulders and get into the action!

Just make sure your risk management plan allows you to have many many many losers in a row. Whatever amount you are planning to risk per trade, take that number and divide it by 5. I am not kidding.

Don't blow out your account. Don't be stupid, even though that $5,000 capital is money you can afford to lose. Just because it's money you afford to lose doesn't mean you have to lose it, right?

As soon as you have a 10% drawdown, which is very likely, take 2-3 weeks off trading and review your trades and try to figure out what went wrong.

There are many risk management tricks and ways to preserve your capital, focus on that at the beginning.

But please, GO LIVE. Don't waste too much time demoing. Demos are tricked, you always get great fills when demoing, you never seem to lose money.

Go live. Please do. And for the first 6-12 months only risk ridiculously low amount of money per trade. Your risk should be so small that you feel no adrenaline whatsoever. You have to be bored. Always. Boredom is a good sign. Trading is not about adrenaline rush and excitement, its about making money. If you need adrenaline, go watch a thriller movie or purposedly stick a pair of female used undies in your wife's bag...that'll get you some adrenaline I guess...lol

Good luck.
  • #20
  • Feb 18, 2007 2:08am Feb 18, 2007 2:08am
Your not ready! don't go live yet.
Here is a good way to find out if your ready...
Make a new and fresh demo account of $5,000, if you turn this 5,000 to 20,000 with only 1 lot then your ready!
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