When and how do you know you are ready to invest real money? | Forex Factory

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When and how do you know you are ready to invest real money?

  • #1
  • First Post: Sep 15, 2016 3:41pm Sep 15, 2016 3:41pm
Hello fellow traders

honestly: I have been trading for almost a year. I have taken some courses, read books, researched a lot and given a lot of thought and efforts but I lost a
lot of money and am not profitable yet.

I realize now that I should not have put serious money before I was sure I was profitable.

My question is :
how do you know when you are ready?

After 1 profitable month? how much percent of your account is considered enough profit ?

When is it right to invest some real money?
  • #2
  • Sep 15, 2016 4:29pm Sep 15, 2016 4:29pm
When you are consistently profitable for at least one year on one demo account.You should start with same amount as you intend in real account.but small account is more challenging to psychology and preferable.

If you are not profitable for at least this period do not touch your money in forex
atheer1
  • #3
  • Sep 15, 2016 4:37pm Sep 15, 2016 4:37pm
Quoting atheer1
When you are consistently profitable for at least one year on one demo account.You should start with same amount as you intend in real account.but small account is more challenging to psychology and preferable. If you are not profitable for at least this period do not touch your money in forex
wow 1 year? that seems a lot.

Do you mean I should be profitable for every single month during that year or overall after the year is over?
  • #4
  • Sep 15, 2016 4:51pm Sep 15, 2016 4:51pm
Quoting pulke
When is it right to invest some real money?
//----

real money?.... probably never...... the best thing, for me, was to take a small account and turn it into real money...... my view of a small account is 400$.....

takes time.... but time we have......h
to trade and code, keep both simple... no call to impress....h
  • #5
  • Sep 15, 2016 4:57pm Sep 15, 2016 4:57pm
Quoting pulke
{quote} wow 1 year? that seems a lot. Do you mean I should be profitable for every single month during that year or overall after the year is over?
Most profitable real traders may not have all profitable months overall and sometimes difficult to achieve.Overall profitable year is ok but the % should worth it,and you must not have very big draw down during this period.

During this time you must trade the same technique over and over again..........
Take my word seriously
atheer1
  • #6
  • Sep 15, 2016 5:13pm Sep 15, 2016 5:13pm
Let us say you learned driving,after 1 year of daily driving you will become better at this.Forex trading is a very risky for new comers,so if you are not profitable in demo you will not have any chance to win it in real.
atheer1
  • #7
  • Sep 15, 2016 6:59pm Sep 15, 2016 6:59pm
Quoting pulke
how do you know when you are ready?
If you don't go LIVE with real money, you will never know. Trading on a demo account is useless to measure your real ability in term of emotional behavior.

I personally never used demo account for my own trading.

Like said Hayseed in an earlier post, start small ...
MT4/MT5 EAs/Indicators/Alerts coder
  • #8
  • Sep 15, 2016 10:51pm Sep 15, 2016 10:51pm
Quoting pulke
Hello fellow traders honestly: I have been trading for almost a year. I have taken some courses, read books, researched a lot and given a lot of thought and efforts but I lost a lot of money and am not profitable yet. I realize now that I should not have put serious money before I was sure I was profitable. My question is : how do you know when you are ready? After 1 profitable month? how much percent of your account is considered enough profit ? When is it right to invest some real money?
Being living with trading very hectic task . It needs time , sometime 3 years or 12 years depends on your learning curve and emotional attitude. Don't demo trade , its useless ,lets start with micro account instead. Every month profit may not be possible and if you live living trader you need at least 2 years
family expenses in reserve wallet to meet daily family expenses and your return of investment should vary from 2% to 20%. If you have huge base capital then 3% is pretty okay per month , some do 300% per month or even 30000% per month you might have noticed but that's not real side of trading. If you love to survive here in a long run think realistic, plan your family and money management properly , adopt patience a lot , focus 1 or 2 currency pair only, avoid Japnese pairs initial trading years , keep unputdownable attitude, should have passion to trade. Forex trading isn't quick rich game.
Never Gamble Forex
  • #9
  • Sep 16, 2016 1:20am Sep 16, 2016 1:20am
Quoting yesyoucan
{quote} Being living with trading very hectic task . It needs time , sometime 3 years or 12 years depends on your learning curve and emotional attitude. Don't demo trade , its useless ,lets start with micro account instead. Every month profit may not be possible and if you live living trader you need at least 2 years family expenses in reserve wallet to meet daily family expenses and your return of investment should vary from 2% to 20%. If you have huge base capital then 3% is pretty okay per month , some do 300% per month or even 30000% per month...
sounds like good advice.
The only thing I don't agrea on is taking 1-2 currencies only.
You need diversity.
  • #10
  • Sep 16, 2016 2:37am Sep 16, 2016 2:37am
I think that expert people should be very careful when sharing their suggestions; trading real money till you are not ready is fool, if you lose day in and day out what is a small loss today will become a big loss after a few months.
When you'll be ready to trade real money you'll feel it in your belly, trading is really a tough learning process but once you have figured it out is simple and almost boring: so once you will feel free of fear and bored is a good clue that you are ready and your performances will confirm your feeling.
The first requirement to become a good trader is a radical shift with your way of thinking: the mind that has brought you to trading is not the mind that will allow you to succeed; a correct mindset is what will allow you to understand and learn.
Market is a big and great brainteaser that you need to solve but you won't ever make it out of a right mindset; go beyond your charts, knowledge and truth are behind them.

Take a look at this thread, there is a lot of food for thoughts:
http://www.forexfactory.com/showthread.php?t=267045
  • #11
  • Sep 16, 2016 2:49am Sep 16, 2016 2:49am
Quoting pulke
Hello fellow traders honestly: I have been trading for almost a year. I have taken some courses, read books, researched a lot and given a lot of thought and efforts but I lost a lot of money and am not profitable yet. I realize now that I should not have put serious money before I was sure I was profitable. My question is : how do you know when you are ready? After 1 profitable month? how much percent of your account is considered enough profit ? When is it right to invest some real money?
dont be discouraged. all traders go through this phase. you will come out strong. don't give up and have a sound trading system. start with 100 dollars. take 0.1 lots and invest in a currency you are sure is about to give you returns based on ur system. then from profits of that risk on the other trade.

Preserve capital
Minimise loses
Profits will follow
  • #12
  • Sep 16, 2016 6:34pm Sep 16, 2016 6:34pm
If these is what said, unot reday yet .

1 u have to interogate your self truely

market end you are not same , markey and data is not the same , data and u is not always scnycronize ,
so start with , if price move again u wat u do , if price going your way watta you do ..... greatest QUESTION OF ALL ......

2 you have to interogate the market , is all those nay nay strayer flafyy mouth is tellin the tru ........

3 u have to interogate the data , what data can lead you , and you can read what the data sign on you .

trading demo and real same ... if you can put those 3 in the right prespective ..... if demo 100 year still dont get it dont get it , trade 100 real acct dont get it still dont get it ......

How wize are you ........ or fillin lucky ...........

2 c
  • #13
  • Sep 16, 2016 6:45pm Sep 16, 2016 6:45pm
ooopppsss ..... if order b fore 12 mid night will get extra ......

mony managerment is just the ecingggg ,,, need a real clear plan ... and a startegy ......

if go with mony managerment 1 st or last to cover up the pland da sysatem .....

well ... will look like senor brenheho poteti ..........
  • #14
  • Sep 16, 2016 10:39pm Sep 16, 2016 10:39pm
Yeah right, when you are getting constant profit in demo for a long time in Forex. Then you can get to know that now you are ready to invest real money in market, and you can trade real account for real profit.
  • #15
  • Sep 17, 2016 3:48am Sep 17, 2016 3:48am
Profitable on demo does not mean you will be profitable on live, you could be but there is no guarantee.

How much demo you need also depends on what kind of system you have.

Only way find out is with real money. Enough to bring out the emotions and see how much good you are at handling them. So you will have to loose money in small attempts and go back to drawing board everytime.

Also it takes atleast a few years to be profitable. Dont be in a hurry.
  • #16
  • Edited 10:37am Sep 17, 2016 10:24am | Edited 10:37am
order with in 24 h ... get ...xtra .......jus 2 left .... harryyy ....

if broker is the problem ... broker forum ...

if system is problem .... tradin system forum ....

the rest ......... painful but reality check ..........
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  • #17
  • Sep 17, 2016 10:45am Sep 17, 2016 10:45am
I may go against the trend here, but I agree with those that say demo accounts are useless why? you ask.

Well just like poker being 80% luck 20% skill, trading is similar in that it's 20% trading skill and 80% psycology and emotions.

Real life proof can be seen by my supply demand journal, when I took my $200 live account to a full time account.

On demo you experience no real emotions, at least with a small account even if its only $200 it's real life money and you can then start to challenge how you react emotionally.

I was trading my small account succesfully on my livestreams, and I got a private offer to trade funds for a Canadian Record Company, the Company flew a guy over to set me up a proper trading office and everything, and handed me over a $50,000 account. I can tell you now going from my small personal account to this was sickening, when I put my first trade on and it went a little against me of like 10 pips, the floating loss although in the big picture was small, to me seemed huge, and I was physcially sick out the window, I could not handle it. the company did not give up on me however after seeing how I can trade, and paid for professional help in the lines of psycologists and emotional therapy. I came out the other end profitable and all turned out wonderful. But this just goes to show you how going from a demo to real life money can dramatically change ones state to affect their trading.
  • #18
  • Sep 17, 2016 10:50am Sep 17, 2016 10:50am
just ... rest ... the .. case .....
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  • #19
  • Edited 1:10pm Sep 17, 2016 12:57pm | Edited 1:10pm
So ... if reading just allbot adhd ... look like preetty corcky riteeee.... need to read the whole piccy .....

the moral of the sayinn is ... understand u self WELL ............ ( if any have adhd never know .. never known ... never show sintom ...... )

da small fish can swim in aqurium , can wsim in the see ..... why cant YOU .... ( then the detail come is the aqurium salted water ....? WTF )

wayy ....... wayyy .....wayyyyyy ...... back ... there is no DEMO acct ..... all beef ..... da last thinggy wanna hear is MC Donald .....
  • #20
  • Sep 17, 2016 1:19pm Sep 17, 2016 1:19pm
Quoting pulke
When is it right to invest some real money?
When you have developed and understood the intricacies of your edge/s.
When you can discern when your edge/s are present and when they are not.
When your entries - according to your edge/s - are inline with current conditions.
When your exits - according to your edge/s - are inline with current market conditions.

When your risk is managed like a ruthless mercenary.

Other than that, you never know what will happen next, but whatever you do, you must make sure you can cope with the most disgusting, ugliest, scariest environments.

Dont avoid them, become aware of its presence and embrace it. Only then will you have the 'inner peace' of knowing you will be okay.
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