Tools and Practice decide your Forex Trading Success

I think the most crucial decision a trader makes regarding trading methodology is that of selecting the tools for entering and exiting the trades. Technical analysis can be done with help of trend lines, support and resistance levels, technical indicators, Fibonacci etc. a trading plan is based on the tools the trader chooses. Trading plan outlines the signals a trader is looking for in order to enter and exit a trade. For a trader relying on fundamental analysis a trading plan is equally important which would consist of economic indicators to track along the conditions to enter and exit a market.

I find it advisable to trade on demo/virtual accounts on the trading or broker sites for gaining first hand experience before going live. Most pros will tell that trading on the two-demo and live are two different things still. It is planning a trade that counts in both the cases. And demo accounts help a trader do just that-train the trader technically as well as psychologically on practicing discipline on the trading strategy. It can not be decide as to when a trader should move from the demo to the live. Some novice traders shift from demo to live within two months, other may take more than 6 months. Its really a very personal decision .The thumb rule is –go live only after thorough practice. With live trading emotions come into play, because it’s our own money involved. This gives the learning through demo accounts a slight curve.