Support and Resistance Trading Forum

Re: Trading a Tough Economy
By:techie
Date: 3/23/2009, 8:47 am
In Response To: Re: Trading a Tough Economy (Sassy2u)

Consistency is everything in trading. The best way to become a consistent trader is to trade a lot, testing your trading methodology. My advise is to paper trade your methodology until you are consistently making a profit. An even better approach is to trade a demo account. There are a number of brokers that, for a fee of $50 a month or less, will set you up with a demo trading trading account.where you can practice your methodology. One that I know charges $29.95 a month to demo trade an account and that includes charting and a very good electronic trading platform. This is an inexpensive way to check your methodology. Don't trade real money until you have utmost confidence in your ability to execute the methodology that you use when trading the demo account. That confidence in the methodology is necessary for you to overcome the two pronged emotional onslaught of fear and greed that will undoubtedly raise its ugly head the first time that real money is on the line.

Do not underestimate the emotional portion of trading. I know a number of traders who did very well when paper or demo trading, but lost their shirts when they put real money on the line. The emotional portion of trading real money did not allow them to execute the very same methodology that they were using during their demo trading.

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