How To Learn To Trade

There are many ways to learn to trade, these usually include demo or live account trading. Each approach has its own unique advantages and secret benefits.

How to Learn to Trade Responsibly and Seriously

All new traders willing to learn to trade responsibly on their own, and seriously enough so as to generate consistent profits, should become original thinkers. For testing out a strategy, some may prefer demo trading, which is fine. Demo trading has its own advantages, since a strategy can be tested more objectively. Without developing confirmation bias when studying the markets, with an open trade on. The idea that demo trading is useless and not in touch with reality, is absolutely wrong! It is in fact, live trading which tends to lead unprepared traders away from reality, exactly because they tend to develop confirmation bias. So that buyers only see buy signals and sellers only see sell signals. It’s all because having real money at risk forces them to have this bias, along with strong denial to admit that their trade might be wrong. Demo trading is good, and can be used as a first step for trading CFD live contracts later on. But even if you happen to trade live already, nobody will ever take you seriously unless you have been trading for more than 6 months, and on an account larger than $10,000. Deep down, there’s no much difference between small live accounts and demo accounts. Serious trading can be possible when traders treat trading lightly, not taking markets extremely seriously, but just having some basic guidelines and rules.

Learn to Trade for Account Survivability

Account survivability is the number one priority, as it is more important not to lose than to win. In order to learn to trade well, traders must learn to direct their greed accordingly and know when to stay away from the markets. Traders who want to learn how to trade forex and commodities, should look for ways to become specialist in few markets. And have at least one market where profitable trades appear every once in a while. These are usually non popular markets. So that those casual profitable trades may appear in some least popular currency pair, and not in the popular, heavily traded EURUSD for example. CFDs make it possible to trade currencies and commodities in a very efficient way, and even hedge open losing trades during confusing market times. What the serious trader wants, is to have a unique strategy, think originally, and question popular opinion and from any authority. Because there are no real authorities when it comes to the markets. CFD trading platforms allow for the implementation of such original strategies, where the trader may have a buy, sell or neutral view on a market, for few hours or days.