Making the transition from Paper Trading to Real forex trading

Posted on November 28, 2009
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Making the change from Paper Trading to Real currency trading

Assuming that you are feeling you’re ready to dig into the forex market, take a step back right now and think this through totally : do you have all the realization that you need? Do you have all the tools that you need? Have you at least gathered some experience with paper trading?

If you answered ‘yes’ to all 3 of the questions that we just posed, then you almost certainly are ready to start trading for real.

However even though you’ve taken each preparatory step possible the truth is that there’s more to come and the real training process starts from the minute you make your first trade onwards.

For one thing, you are now actually dealing with real money. Your money. And that is going to prove to feel different from back when you were just making paper trades with virtual money. Now you are truly going to be risking something of price to you, and you’re sure to doubtless feel slightly apprehensive.

candidly talking, feeling nervous isn’t bad, so long as you be sure not to let it hamper your decision making process. If your apprehensiveness just makes you extra-careful, that is’s fine. But if you find that you’re ‘chickening out’ of making trades that you knew were good but didn’t wish to take a chance on, then you’re going to finish up having a lot of regrets.

Also, now that you’re actually trading cash of your own, when you do make a loss the disappointment factor is also going to be amplified tenfold. Once more, frustration in itself is not a bad thing, and can even help you to ensure that you don’t make the same mistake twice.

However if you let every loss that you make get to you, you may quickly find that you are at your wits end and everything that seemed to be so easy while you were paper trading all of a sudden winds up feeling that much more advanced.

All said and done, the core point that we’re driving at is this : Paper trading and real foreign exchange trading are 2 different ball games. Sure, paper trading is a very important preparation in terms of the abilities that you need to play the currency market, but it is still just like a simulation, and doesn’t compare to the real thing.

But because you’ve gone through that simulation, you must have the skills you need right there with you, and the only thing that is standing in your way is getting used to the emotions and pitfalls that come as part and parcel of trading in reality.

Trust yourself and the experience that you’ve built up while you were paper trading. Imagine as though you were still doing that, and remember how successful you were at it. Then, try your best to emulate exactly what you were doing formerly.

Sure, you might still fail here and there, but in the longer term the actual mechanisms of the trades are no different, and so, at some point, you’ll find yourself starting to profit just like you probably did in the paper trading run.

Once you have accomplished that, you would have successfully made the transition!

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