November 28th, 2008

6 of 10: Lack of Psychological Preparation

Awareness #5- Lack of Psychological Preparation When a trader is using a live account he pays more attention to the results, the cause and effects, or at least he should.  This gives psychological feedback to the trader.  In demo accounts the ability to learn from emotions during trading is limited. In fact, they are often [...]

November 27th, 2008

5 of 10: Lack of Performance Analytics

Awareness # 4- Lack of Performance Analytics Traders have the account history to monitor what they have done on their trades but they lack the discipline or knowledge on how to use this information. We like to suggest that you take blocks of 20 trades to analyze.  Once you have completed the first block keep [...]

November 26th, 2008

4 of 10: NO-RISK Control

Awareness # 3- NO-RISK Control Examples of no risk control are: jumping out of an airplane at 10,000 feet without a parachute, going scuba diving without air in your tanks, or going bungee jumping with out a bungee cord.  Trading with out any risk control will have the same disastrous out come.  To have a [...]

November 25th, 2008

3 of 10: Let’s See What Happens Trading

Awareness # 2- Let’s See What Happens Trading There is NO penalty for just putting on any trade at any given time in a demo account.  Because there is no penalty when demo trading a trader can fall into the habit of not putting on a stop loss, not managing the trade, and just letting [...]

November 24th, 2008

2 of 10: Trading The Big Dollar Moves

Awareness #1- Trading The Big Dollar Moves When trading, how does a trader know which move is going to be the big move.  They don’t.  Trying to catch the big trades alone to get rich quick is a destructive habit.  A trader should take all good signal trades. By doing this, they will make a [...]

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