I'm going to share with you how to trade foreign currency, the smart and productive way. This is a great business opportunity for most people, but the best thing you can do is take it slow. Don't jump right in because it'll feel like you're in quicksand.
How to deal with losses?
You're going to have losses. It's not because you're bad at this, it happens to everyone. What determines a good trader from a bad one is how they handle it. New traders really have a hard time letting go. “It will go back up", they tell themselves in a reassuring mantra. This isn't the way to think about it. If you have no logical basis to know it will go back up, there is no point in holding onto it. Cut your losses and get the remainder of your money back. Why? Because you're better off having the money because you can put it into another profitable trade, instead of leaving it in an old bad trade that will probably get worse before it gets better.
Don't spend what you haven't earned
A lot of us like to look at our accounts and go say to ourself “Oh I'm a head". You start to see your account have some profit. Sometimes this profit can get to a nice portion where you can buy something. Here's the deal, don't start spending that money until you have it in your hands. A lot of people start spending, while the money is still invested in a trade. You can guess what happens, the currency drops down, the profit disappears and they're left with this debt.
What is a demo platform?
A demo platform is something usually comes with your trading platform. It is away to trade without actually trading. It is the best simulator to learn. You'll often hear people say they're not good, but they're just reiterating the mantra of experts. Demos are no good for experts. Demos are great for people that are new or looking to grow. Take advantage of it, you will learn a lot.
I'm currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.