When and how do you know you are ready to invest real money? | Page 2 | Forex Factory

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

  • #21
  • Sep 18, 2016 5:50am Sep 18, 2016 5:50am
I spent about 8 months starting small <$2000 .. and traded that for 3 months ... ( i already know how to use MT4 so no demo for me.. i wanted to trial this system.. and i need to have the real nervous, joy filled, fear driven, lusty greed experience for real with rel money) ...

after 3 months .. i moved it up to $18,000 .. and did that same system for 4 months .. to see how i was handling all the emotions again.. but on numbers that i couldn't just chuck a grand into the account to get me out of DD .. and seeing winnings that actually pay bills .. to see how i react to that..

During this time.. i used FXT2 to back test my strategy for 5 yrs per currency i wanted to trade on .. to let me see how it performs multi year.. and get a feel for the highs and lows in profit and DD...

This year .. i put in an amount that i can make a living from.. whilst holding back capital in case of a Black swan or broker issue or whatever.. so that, if needs be, i can reload all again.. and keep on earning etc..

The psychology is it... that's the thing that will blow you up .. the trading strategies are everywhere.. and i would say the vast majority work.. if you dont break them..
6 months in ... working well... paying the bills.. still building the account . . and taking each day as it comes..
  • #22
  • Sep 18, 2016 7:38am Sep 18, 2016 7:38am
Quoting SixIt
taking each day as it comes..
that is the way to go !! (everything you wrote .. i just did not want to quote everything)

most strategies do work in some situations. if the mind is strong enough to hold trough one .. there should be litte to no loss at least.
sure you can't live from it .. but that is a treat start and seeing the investment not fading away is a serious ego booster.

the main question is basically the expectancy each one has.

if you want to live from trading .. thats actually simple.
on the day the monthly withdrawal you make is the same size as one (1) losing trade you may experience in the same time, then you made it!
simply count the whidrawal as a loosing trade for that day in your money management. and this is not somethings that can hurt you.

if you just want to put money on the market instead of the bank, the calcualtion may be different ..

simple.
  • #23
  • Sep 18, 2016 10:41pm Sep 18, 2016 10:41pm
Quoting SixIt
I spent about 8 months starting small <$2000 .. and traded that for 3 months ... ( i already know how to use MT4 so no demo for me.. i wanted to trial this system.. and i need to have the real nervous, joy filled, fear driven, lusty greed experience for real with rel money) ... after 3 months .. i moved it up to $18,000 .. and did that same system for 4 months .. to see how i was handling all the emotions again.. but on numbers that i couldn't just chuck a grand into the account to get me out of DD .. and seeing winnings that actually pay bills...
What is our system?
  • #24
  • Sep 18, 2016 10:51pm Sep 18, 2016 10:51pm
[quote=pulke;9142207]: how do you know when you are ready?

The same way you 'know' what to do with the rest of your life.
1/ You have to know who you are, Trading is teaching you this but be wise, explore yourself. its free
2/ you have to know what you are doing. Horses for courses.
3/ you have to know why you are doing it.

Know thy self, know thy enemy.
  • #25
  • Sep 18, 2016 11:02pm Sep 18, 2016 11:02pm
When your "mentors" become your rivals.
  • #26
  • Sep 18, 2016 11:05pm Sep 18, 2016 11:05pm
Interesting question about when you can trade at Real. I lost over $ 26k before I start a profitable period. I have tried many advisers for my career, and proved them, try some of the strategies that I have advised friends.
I have little traded on a demo account. I traded a small volume with a small deposit, to test myself
I tell you what. My opinion is that each trader has a series of setbacks, which can lead to the loss and a series of victories, which can lead to wealth. The whole point is to stop in time, when you start to lose and in time to start when you are lucky. I took over 2 years to become a some trader.
Surrealist
  • #27
  • Sep 18, 2016 11:08pm Sep 18, 2016 11:08pm
Quoting Mingary
When your "mentors" become your rivals.
haha priceless !!!

but most so called "mentors" never become rivals because they usually not trade
  • #28
  • Sep 18, 2016 11:34pm Sep 18, 2016 11:34pm
Quoting nullx8
{quote} haha priceless !!! but most so called "mentors" never become rivals because they usually not trade
Indeed (:
  • #29
  • Sep 18, 2016 11:47pm Sep 18, 2016 11:47pm
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?
Forget the nay sayers because they all have lost money trading forex . Trading demo or a real account is no different (to a degree) unless you intend to trade accounts over a million.

I trade live and demo and my accounts reflect each other.

My advice if you can hold a 100K demo for 6 months and make 10% profit per month with an DD ratio of around 1:1 you are ready to go live. When i 1st started I did demo for a month went live and lost my money. The process was repeated many times over. It will happen to you also as almost everyone that starts trading. Eventually you will find a way that suits you.

Aim for 10% profit per month and that also will depend on you balance. Bigger profit target = bigger risk.
Keep leverage low at around 1:5 max.

The only way to learn is screen time.

Also start small no more than 1k and trade with .01 lots after 3 months if you can hold the account add another 1k trade with .02 lots and as long as you can hold the account keep adding money until its at the balance you want to trade with.

Greed and lack of patients is the biggest killer.
20 Pips a day keeps centerlink away
  • #30
  • Sep 19, 2016 3:23am Sep 19, 2016 3:23am
For me trading on a live and a demo accounts was pretty different, even though I wanted to do the same things. I simply froze up when I first started and I made mistakes out of fear and anxiety, and occasionally from greed too.
  • #31
  • Sep 19, 2016 4:58am Sep 19, 2016 4:58am
Not really

demo: ego to keep it green and proof your concept/strategy
live: preserve capital

different pourpose yes, but if dealt with differently, better nit trade for living.

if your cost of stoploss the same size as all your bills combined, shit will hit the fan.

if ego, greed and fear is out of control.
  • #32
  • Sep 19, 2016 5:40am Sep 19, 2016 5:40am
Quoting PaulDaemon
{quote} Forget the nay sayers because they all have lost money trading forex . Trading demo or a real account is no different (to a degree) unless you intend to trade accounts over a million. I trade live and demo and my accounts reflect each other. My advice if you can hold a 100K demo for 6 months and make 10% profit per month with an DD ratio of around 1:1 you are ready to go live. When i 1st started I did demo for a month went live and lost my money. The process was repeated many times over. It will happen to you also as almost everyone that...
Forget the advisors telling you that there is no difference in trading real and demo. They simply have no clue. Especially for intraday scalping slippage is only occuring under live trading conditions leading to turn a highly profitable demo account into a devastating account crusher trading live.

Trading demo to evaluate the performance of a system is mostly a waste of time. There is no discussion about that.
  • #33
  • Sep 19, 2016 6:23am Sep 19, 2016 6:23am
Quoting Drolph
Especially for intraday scalping slippage is only occuring under live trading conditions leading to turn a highly profitable demo account into a devastating account crusher trading live. Trading demo to evaluate the performance of a system is mostly a waste of time. There is no discussion about that.
If Slipage not happens on your demo but on yor live account, that is a indication to get your money back and go to another Broker!

as the broker clearly has a different agenda regarding how to handle your money.

i tested all my strategies with a demo forst, once consistent and boiled out issues, go live with 100$, once that consistent, invest sone real money.

i made with 2 of my strategies over 180k
and none of them would happen if there where no demo.

My current demo trial is also a scalping if small pullbacks, and i have a lot of slipage just as i have it on live.
  • #34
  • Edited 6:46am Sep 19, 2016 6:35am | Edited 6:46am
Quoting nullx8
{quote} If Slipage not happens on your demo but on yor live account, that is a indication to get your money back and go to another Broker! as the broker clearly has a different agenda regarding how to handle your money. i tested all my strategies with a demo forst, once consistent and boiled out issues, go live with 100$, once that consistent, invest sone real money. i made with 2 of my strategies over 180k and none of them would happen if there where no demo. My current demo trial is also a scalping if small pullbacks, and i have a lot of slipage...
You really made my day, bro.

I am trading longterm and profitable enough to know what I am talking about. NO ECN broker will guarantee you a no slippage execution, which is technically not possible by the way, as every trade exeuction depends on the available liquidity.

I am guessing you are trading with a MM and/or trading far too small lotsizes.

Next to that slippage is hard to "simulate" on a Demo account. Real agency brokers do not know which LP executes your trade until it happens and in consequence can not reliable reproduce this in an artificial trading environment.

PS: after rereading your post I even would go a bit further. Your statement of having slippage on a demo account is a lie, as this is technically not possible.
  • #35
  • Sep 19, 2016 6:49am Sep 19, 2016 6:49am
Demo re-creating slippage in a live environment <<< Not sure if any comment can make me laugh much more today.
  • #36
  • Sep 19, 2016 7:47am Sep 19, 2016 7:47am
pppssssttt ... is the fish tube is salted water ....
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  • #37
  • Sep 19, 2016 8:03am Sep 19, 2016 8:03am
give a candy to 2 babys ( dun ask how old ) they start beatin each other ....

give 2 toys gun they start to shooteee each other .....

wellll... its better to go with the flooooooo ...........

ucant turn back the clock ........... , cant turn back the tide .........

....... those are the days of off ooorrrrr liveeeesssss ............

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  • #38
  • Sep 19, 2016 8:55am Sep 19, 2016 8:55am
Quoting ccr
or fillin lucky
;p
  • #39
  • Sep 19, 2016 9:56am Sep 19, 2016 9:56am
It took me around a year of trading and destroying my demo accounts before I finally realized to use lower leverage. After I was consistently up every month with a manageable drawdown, I opened a real account. Since I live in the US, we have lower leverage limits, 50:1 is the max, and I think that helped me evaluate risk differently than traders who can use 300:1 or higher leverage.
  • #40
  • Sep 19, 2016 4:56pm Sep 19, 2016 4:56pm
Quoting Drolph
{quote} You really made my day, bro. I am trading longterm and profitable enough to know what I am talking about. NO ECN broker will guarantee you a no slippage execution, which is technically not possible by the way, as every trade exeuction depends on the available liquidity. I am guessing you are trading with a MM and/or trading far too small lotsizes. Next to that slippage is hard to "simulate" on a Demo account. Real agency brokers do not know which LP executes your trade until it happens and in consequence can not reliable reproduce this in...
How much slippage are we talking about here? 50 pips?
Honestly I have never had any problem with slippage on a live account even on the day of the Brexit referendum. If you rely purely on scalping a few points out of the market well yes slippage is a real problem and if you practice those tight scalping techniques on demo well of course it wont work on a live account. Its like wise comparing a retail traders day trading strategy that works with a 10K balance will not work with institutional trading a 10 million $ trade. If you think slippage is a problem maybe ask an institutional trader that has to wait even up to 10 minutes to get their order filled, and in some cases even get their orders rejected.

There is no problem with slippage trading on a live account and those that blame slippage for their losses should look to them self and find a way around it.
20 Pips a day keeps centerlink away
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