Making the transition from Paper Trading to Real forex trading

Making the move from Paper Trading to Real foreign exchange trading

Presuming that you feel you are prepared to dig into the currency market, take a step back at the moment and think this through completely : have you got all the realization that you need?  Have you got all of the tools that you need?  Have you at least gathered some experience with paper trading?

If you answered ‘yes’ to all three of the questions that we just posed, then you probably are ready to start trading for real.

However although you’ve taken each preparatory step possible the reality is that there is more to come and the real learning process begins from the instant you make your first trade onwards.

For one thing, you are now really dealing with real money.  Your money.  And that is going to prove to feel different from back when you were just making paper trades with virtual money.  Now you are actually going to be risking something of worth to you, and you’re bound to doubtless feel barely apprehensive.

candidly speaking, feeling apprehensive isn’t bad, while you don’t let it hamper your decision making process.  If your apprehensiveness just makes you extra-careful, that is’s fine.  But if you find that you’re ‘chickening out’ of making trades that you knew were good but had no wish to take a risk on, then you’re going to end up having a lot of regrets.

Also, now that you’re basically trading money of your own, when you do make a loss the frustration factor is also going to be amplified tenfold.  Once again, frustration in itself is not a bad thing, and can even help you to make sure that you don’t make the same mistake twice.

However if you let each loss that you make get to you, you can quickly find that you’re at your wits end and everything that looked to be so easy while you were paper trading suddenly winds up feeling that much more difficult.

All declared and done, the core point that we are driving at is this : Paper trading and real foreign exchange trading are 2 different ball games.  Sure, paper trading is an important preparation re the skills that you need to play the currency market, but it is still just like a simulation, and doesn’t compare to the real thing.

But because you’ve gone through that simulation, you should have the talents that you need right there with you, and the one thing that is standing in your way is getting used to the feelings and problems that come as part and parcel of trading in reality.

Trust yourself and the experience that you’ve built up while you were paper trading.  Imagine as though you were still doing that, and remember how successful you were at it.  Then, try your best to emulate exactly what you were doing formerly.

Sure, you might still fail here and there, but in the longer term the particular mechanisms of the trades are no different, and so, at some point soon, you will find yourself beginning to profit just like you did in the paper trading run.

Once you have accomplished that, you would have successfully made the transition!

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