OK. I wanted your guys' opinion on a proposition I made with myself. Trading Forex has been a wild ride and recently I decided to go back to paper trading. It's a micro account with $500 and I told myself when I reach $1000 I should be ready for real money. Is that reasonable? I don't plan on over-leveraging to get there either. 3 lots is the maximum I'd take, which in Micro is about 34 to 25 cents per pip. To double my account would take time and smart trades.
Quick Question Guys?
- Thread starter ForexProdigee
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Isn't the commission the spread in Forex? From my Real Micro to My Demo Micro Account, the spreads on the pairs I usually trade are virtually the same. 2.2~ pips give or take on the majors. I'm not sure what you meant on how'd I factor in slippage. If I'm trading when the market is extremely volatile, I'd expect price to continue in my favor. If not, I accept the loss. Is that what you meant?
OK so you are not using direct market access. When referring to slippage I am saying that if the price is showing say Bid = 1.6180 and Ask is showing 1.6182 then you decide to buy how do you know that the price you would get is 1.6182 as you could easily be filled at 1.6184
The same also applies when you sell in that you could end up being filled at a different price to that seen on the screen.
This is important otherwise you may think you are making profit on paper when in reality you wouldn't.
The same also applies when you sell in that you could end up being filled at a different price to that seen on the screen.
This is important otherwise you may think you are making profit on paper when in reality you wouldn't.
I use FXCM, I'm not sure if I should request direct market access or change brokers.
But would a slippage ever be great enough on any ONE trade to make me unprofitable? I could see an accumulation of slippages being significant, but only enough to offset my gains if my losses outweigh my wins. By win/losses I mean profit/loses, not a win loss ratio.
But would a slippage ever be great enough on any ONE trade to make me unprofitable? I could see an accumulation of slippages being significant, but only enough to offset my gains if my losses outweigh my wins. By win/losses I mean profit/loses, not a win loss ratio.
Here is the only problem with paper trading... It is not real... I know people say to paper trade for awhile to prefect a system, track everything and all that, but when push comes to shove, there is nothing at stake.
If it works out and you are confident in your system that doubled paper trading, then use the same discipline you used paper trading as you do with real money and you will be fine. Otherwise you start second guessing yourself and deviate from the plan that worked... Make sense?
Any reason why you believe the guy on the other side of your real trade is dumb like a piece of paper ?
As far as the mechanical piece I think it is exactly the same. The point I was trying to make is when real money is involved, the more psychology, emotions, and the "real risk" you are willing to accept change.
It is easy to accept risk on paper, and when those numbers change in a real account vs. a paper account, that is when you really start to learn how to trade, which is why for me I have strict entry and exit points on every trade I make. I don't second guess myself.
When I went from paper trading to real trading, I started to see some losses got nervous exited positions I shouldn't have, that turned out to be winners, so I took a winning trade and turned into a losing trade, and wouldn't have done that on the paper account.
I know better know, but that is just something I went through and had to learn on my own, that I overlooked when paper trading. I am just trying to help the guy out, from what I learned.
What i would recommend is journaling an not paper trading.. if you journal your trades, your emotions and trading decisions.. you are likely to perfect your trading sooner than just saying i want to double my account.
65% of your success is how you handle yourself.. just like driving.. you become a better driver by driving more mileage on different roa settings (in traffic, on free way, on rough terrain e.t.c)..
get into trading and record how well or bad you are trading and eventually you'll have an unbeatable system that suits your personality
65% of your success is how you handle yourself.. just like driving.. you become a better driver by driving more mileage on different roa settings (in traffic, on free way, on rough terrain e.t.c)..
get into trading and record how well or bad you are trading and eventually you'll have an unbeatable system that suits your personality
