In this episode of Truth About FX, Walter goes dip into live trading experience and execution. Whn do you say that you’re ready to trade the real thing? Walter also shares what keeps his trading excitement burning and how he tackles those lonely times when the markets are asleep.

Download (Duration: 07:02 / 8.04 MB)

In This Episode:

00:43 – great progress

01:33 – keen to jump

02:06 – graduated account

03:23 – excitement

04:43 – magic system

05:48 – create and try

Tweetables:

Focus on how did you execute your trade [Click To Tweet].

It’s all about position sizing  [Click To Tweet].

You don’t have to be trading all the time.  [Click To Tweet].

Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.

Hugh: Hi, Walter. Here is a good question that we’ve got, this person is asking: I wonder if a new trader like me should stop trading if I reach my monthly goal or continue taking trade just to get more experience. What do you think about that?

Walter: Yeah, this is a really good question. This trader, I’ve known him for a while and he’s making great progress but, I guess the main point here that I would dig into is this idea of trading in your live account to gain experience.

I think that there are some truth to that but I believe that the bulk of your experience as a trader should come through other means. What I mean by that is — again, if you’ve heard this before — I am a big proponent of forex tester, then demo account, then a small, tiny, teeny money account and then your live account.

You can even put more phase to it like a medium size account before you go to a live account, if that is something that you really want to but most traders aren’t going to do this. And so, when most traders don’t do this, they look to their live account to get their experience as this trader is suggesting.

I am not saying that he’s a bad trader because this is really a common thing. People aren’t keen to jump into the live money trading and they want to take advantage of their system when they are convinced that it is going to work but the problem with that is when you hit a drawdown, it’s going to shake your confidence.

It’s not going to be the same as if you’ve had 700, 800 trades in the bank from forex tester. Another 200 trades in the bank from your demo account, another 2 or 300 trades from your small money account.

That is the kind of thing. I think that only comes with experience and building up your experience by taking those graduated account is really the way to go. So, what I told him, I said, “Look”, — obviously this came through on text message, I just text him today — and I said, “Look man, you really” — because he’s hitting his goal — I said, “look, you really should be like, all the deciding stuff should happen when you are testing out new id...