Practice your Trading Psychology
Another area where manytraders suffer is the live trading psychology. Most beginner traders
find it difficult to abide by the strategy rules, and can’t let the
trade go by according the rule. They tend to close the trade due to fear
or greed factors, not due to the strategy rules. And because of that,
traders cut profits too fast, and do not cut losses on time.
That's
exactly the reason why forex trading simulator is important for
beginner trader. With the simulator, you can practice many trades as
their results unfold, the entries and the exits, until you feel that no
market condition negatively affects your psychology.
Also, when
you develop your own trading strategy, or if you try to add some rules
to an existing trading strategy, testing it on live market means you'll
need to risk money to test it. Instead, you can use the trading
simulator to test the strategy in without needing to risk your real
money or t wait long times to see the results of your modified strategy
rules.
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