FOREX - YOUR FIRST LIVE TRADE

You have read and read about trading in the foreign exchange (FOREX) market. Ideally, you have even taken a course or two on the subject. As you look at your bank account balance, you are more motivated than ever as you contemplate its present condition versus the potential. Really, though, the only missing piece now is the reality of trading live. You want to jump right in, but instead you pause with cautious optimism as you wonder what to expect at the big moment. Here are some tips to help you cope.

Calm Your Emotions

Fear, indecisiveness, nervousness, uncertainty and loneliness-these are the emotions you want to avoid or, at least, put in the proper perspective. Are they normal? Absolutely! In fact, one or more of these can be viewed in a positive light as types of behavioral moderators. To be sure, a certain type of fear is healthy. For example, having a fear of getting out your account balance wiped out should remind you of the need to utilize proper risk management techniques and tools. Your indecisiveness may be a result of genuine confusion existing between the normal indicators you would rely on to show whether you should take a position or stay out of the market. If there is reasonable doubt, stay out. Overall, you should strive to be the balanced person you are designed to be as a means to being a well-balanced trader. This means that you need to get adequate rest, obtain proper nutrition, exercise and meditate to achieve and maintain the necessary balance and sanity successful trading will demand. A cold shower about 30 minutes prior to your trading activities should also help to soothe your nerves while catalyzing blood flow to your brain for better thought process.

Plan Your Trade

If you have not yet received proper training in trading, you should not be trading at all. It has been stressed over and over again that education is foundational to successful trading. Proper training should have taught you how to plan your trades. This would include demonstrations as to how to derive your entry and exit points; how to set your limits, profit targets and stops; how to identify trends; how to get confirmations from certain indicators; how to avoid over-trading, how to set leverage; how to monitor margin, and, how to determine when and when not to trade. Once you have a solid grasp of these concepts, you are ready for your final step.

Trade Your Plan

The problem with many new traders is that they panic when something unfavorable arises during their trade. This can be avoided by having a sound trading plan prior to opening a position. If this is done, then there is no need to panic, since you have a rehearsed roadmap to guide you. Do not try to change the plan in the middle of the stream. Sometimes, of course, the unexpected does arise forcing you to think on your feet and act quickly. Again, your improvisation should not be overshadowed nor dictated by panic and irrationality. Try to determine exactly what the problem is and apply sound principles to correct it. You should try to cure the loneliness of this turmoil by simply contacting your trainer, mentor or other more experienced trader to help you out of the bind, if time allows. Generally speaking, however, you should try to stick as closely as possible to your initial trading plan for optimal results in the long run. Happy trading!