If you are reading these final remarks after having browsed through and studying all the other sections making up our brief guide on how to trade forex online, then your head must already be full of new and previously unknown terms and concepts which pertain to the trading of forex. However, bear in mind that there is still a lot out there that you need to read on and master in order to able to trade as safely, effectively and successfully as possibly.
What is most important to realize is that no amount of theoretical training and reading you do will never be enough to turn you into an apt online forex trader. Like most other human activities and endeavours learning how to trade forex online can only really be accomplished through actual doing, i.e. by really trading.
Just like most other skills, trading forex is a skill acquired mostly through hands-on, actual experience. When making your debut in the world of trading forex online your first and foremost concern should be to gradually develop, enhance, refine and master the relevant skills necessary and do so without destroying your finances. Therefore, especially when you are starting up, always tread with caution and prudence and remember the following key pieces of advice:
- Practice makes perfect
Fortunately, most online forex brokers put at your disposal forex demonstration (or demo in short) accounts, depicting real-time prices, which only differ from normal accounts in the sense that the money placed on trades, won or lost, is not real. Your best way to practice your newly-acquired trading skills is through such a demo account, so open one and practice away. Look for any trends emerging, review and evaluate your results and make the necessary adjustments and corrections to your strategies. Only open a real, live trading account and invest real money if you have reached a fairly firm level of confidence in your skills, only if you feel you can start risking real funds without going bust and wiping out all your money.
- Be prepared
Trading forex effectively is hard work and it needs time and devotion. Through our lessons you should already understand how important it is to be able to closely follow the news as several political, economic and even weather related developments have profound impacts on the markets and are often tied to investment opportunities. Only enter the online forex world if you are prepared and willing to follow, and most importantly, understand the announcements of key economic data and indicators, the results of elections or the outcomes of armed conflicts or natural disasters.
- Pragmatism rules
Don’t have unrealistic expectations from your trading experience, because chances are that it won’t make you rich over night. Moreover, always keep in mind the high risk levels involved and don’t get carried away, don’t get over-excited, don’t trade with your heart and emotion, but with a cool head and sensibility and never risk on a single or multiple trades a sum of money that is more than what you can actually afford to lose.