In this video, Peter Martin discusses the importance of gaining real trading experience by using small transaction sizes, as a way of building on preparation made in Practice Mode. He explains which aspects of trading are more suited to Practice Mode and which aspects can only be truly tested when Real Money is on the line.
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You are so correct.
Hello Peter, nice video as always. Would you please make a video talking about how to trade multiple positions strategically.
I just turned 17 lol got another year yet before I can start on your app 🙁
You can still use a practice account, I’m 17 and that’s what I do.
Paper trade and find a strategy you like. keep it up boys
You are so correct – I have just started real money trading and even though I am only doing micro-lots I have already noticed a perceptible change in my appetite for risk – what would really help is guidance on setting the risk v. reward ratio correctly as when following the advice of giving a trade time to work I end up having a SL level as much as three or four times the TP level and seeing a profit of a few pence leaves me wondering whether it is worth it and if I have got it right
Thanks for reaching out, Chris. As you mentioned risk vs. reward in trading, you may want to watch this video on the topic – https://youtu.be/A06ep5I7i6M.
Very useful – after a fashion – if I interpret that video correctly it almost seems irrelevant if I choose to accept a high ratio of risk to reward provided the trade pays off(whether I pull out at my original TP level however low that is, or let it run) – it really boils down to my individual choice…………………….I am rapidly learning that at the end of the day I can watch videos till the cows come home, read books, talk to people, but it is inevitably down to personal gut feeling and coupled with an understanding of what seems to have gone on, because all a chart can ever tell you is what has happened, not what is going to happen……………the times I have placed a trade and watched as it did exactly the opposite of what I wanted within seconds is very irritating!!
Thanks, where do you learn technical analysis ?
Hello Ha, you may want to take a look at the videos in those playlists:
Technical Analysis & Charting – http://www.youtube.com/playlist?list=PL_qZbVTmPuY_xlEYmnriHzBnyte47sHPv
Indicators: Guides for Beginners – http://www.youtube.com/playlist?list=PL_qZbVTmPuY9qD6SPrJtECVif6UlkNXkS
Although I’m using a practice account, my risk management is actually pretty good I feel, as with how I work, I treat it as the real thing so literally training myself the discipline before doing the real thing.
It’s like the military training recruits to shoot rifles, first they use pretend wooden ones while practising the drills (in trading context the strategies), then they move onto blank firing rounds to actively give the shooter a feel for what the weapon will feel like and how to shoot it properly (in trading terms, the practice account virtual money is the blank rounds you’re learning how to do it properly) and finally once they feel you really know what you are doing, they switch you to the real live rounds (trading terms the real money).
I feel that this video makes an excellent point as it is very true, people behave differently with real money, but I feel if people trying to trade learning the disciplines of trading using their practice account, then they develop that habit way before they start using real money as all they have to do is go back to what they learned on the practice account and remember the drills (strategies) they went through on the practice that way it can potentially boost confidence and discipline a bit more.
Combining real money with watching videos and reading is a good way to invest. You don’t have to start with all your money just something, and try to get the percentages up because that’s what matters in term of investment skills. But if you invested all in something you don’t know about but still managed to get a really good % is probably more chance then skills
This is scary. I’ve become comfortable with virtual trading…
Loved your advice!
Where is David Jones! 🙁
Hi Peter, do you think Esma should not have enforced the new margin rules on brokers who have full NBP?
Thanks for teaching
Great analogy!
Roller Coaster Video
vs
Roller Coaster get on and “Actual Ride”
Thank you
For a beginner, which is the best platform (no real money) to train? Thanks!
When you say start small I’m trading with real money but only started with £20 is that ok to start with and as I gain more money and gain my experience as I’ve never done forex trading before add more money
Is that the right way of doing it or am I doing it wrong