Asked on 20 Apr 2018
Hey. Was trading professionally for a while. Here are some advice.
Being profitable on a demo account has little correlation with trading live. Simply because your trading emotions and decision making process changes drastically when you switch over to real cash. This is human nature, and also the reason why only a small amount of traders are profitable.
Next, trading live hurts you more than you know it. Trading with leverage on a live account can give you the "shiok feeling" when you make money. But take note. If it goes the opposite way, because of the leverage, it is going to hurt you a lot.
If there are some best practise, it will be, to always remember your stop loss and take profit. Make sure you are very aware of how much you can afford to lose. Do not over expose that amount.
Jia you ya!
Guess you could open an account and start with let say 1000 with a leverage of 50:1 ratio, which is the highest available ratio for brokers in Singapore.
Test with your strategy at say 0.01 lot or 1000 units. Then see how it turns out in live trading.
Demo account is always good to learn but the emotional and psychological aspect of a demo vs Live account is very very different. When you are trading with your own money, the losses feel more painful and the profits make you more greedy.
It takes very much discipline and mental ability to really trade well and within the rules. You can start trading a live account with small amounts of money to get the feel of it, any losses is a learning opportunity and any gains are a bonus.
The only real way to learn is through experience. Books and courses can only give you the technical skills but actual trading with real money will help build your discipline over time.
Only trade with money you can lose. Never over leverage.
Some advice on choosing a reliable broker
AAAFx Postponed Investor’s Withdrawal for over 6 Months
Regulatory status: not regulated
Complainant: Ms. Ding
Cause of complaint: heavy loss and withdrawal failure
On the appealing forex market, both high rated and low rated brokers compete for a share of the pie. To increase their market share, the low rated brokers try their best to attract more investors with misleading advertisements such as offering so-called “bonus” or “low deposit threshold at US$ 5”. Therefore, it is crucial for investors to choose a reliable broker. Recently, Ms. Ding told WikiFX about how she was defrauded by AAAFx, an unreliable and illegal forex broker.
In mid-September of 2018, Ms. Ding, drawn by the so-called “high bonus”, opened an account at forex platform FORMAX and began trading. As she seldom made any profits at first, Ms. Ding only applied for one withdrawal in late October. Later, things started to go wrong at FORMAX, as the broker first took back the bonuses it had given out and then transferred all clients’ assets to the platform AAAFx without their permissions. After that, Ms. Ding asked the customer service about her withdrawal issue via social media messages and emails, but she either got auto-replies that the broker “will respond in a few minutes”, or prevarications and excuses of the customer service. Over 6 months after her first inquiry about the withdrawal, she still didn’t get her money.
Investors can draw the following two lessons from Ms. Ding’s case:
In recent years, the booming forex market more brokers attracted various forex brokers. The compliant brokers can easily carve out a niche on the market, while the illegal brokers seem to rely mainly on false advertisements to increase their market share, and “bonus” is a typical slogan of such misleading campaigns. Therefore please be especially careful when you see “risk-free high profits” or “great bonuses” in broker’s advertisement. Always check its compliance and other information, in order to avoid potential risks.
The case involved two brokers, FORMAX and AAAFx.
According to the WikiFX App, illegal forex broker FORMAX has escaped with expired regulation, and the broker has also been exposed in WikiFX’s previous article.
AAAFx currently has no valid regulatory status, with a poor WikiFX rating of 1.93. The broker has received heavy complaints recently and shows low credibility, while its relation with FORMAX is still unclear.
WikiFX reminds investors to stay away from the two brokers and keep in mind to verify broker’s compliance before making investment.