I support mikead_61 - 110 % on his statement above. I'm in the same boat as him. I've spent 1 1/2 years trying to learn how to trade. I honestly can't even break even. I'm hoping I can learn enough in the next 6 months to break even.
Nowdays, I only get 15 hours per week to study and research Forex, and
demo trade. Forex will be only a hobby for me until the day comes when I have proven to myself that I can trade with consistent profits. I could have easily spent 40 , or 50 or who knows how many hours per week doing the same and still be in the same boat I'm in now - after another 1 1/2 years !
Over a year ago, I jumped into a real live Forex USD mini account after only 3 months of demo trading and trading experience. I thought I knew what I was doing. I lost $2,500.00 in a matter of 4-5 weeks trading 1 or two mini lots per trade with 30-40 point stops - all with 1:1 leverage. Got a margin call. Then, I dumped $1,000.00 into the account. Gone in 2 weeks. Then, $500.00. Gone in 3 days... And so on ...You get the idea ?
I tried 3 or 4 different systems/strategies during my real account days. None worked very well. With the exception of one losing system, I have since realized that it wasn't the system; it was my inexperience and lack of knowlegde of the markets. Also, it was my lack of discipline and lack of control of my emotions.
However, as a newbie, I have gotten real trading experience under my belt. I know things about emotions and trading with self-discipline that I never would have learned on only demo trading. This is part of the learning curve of successful trading. Every succesful trader has to learn how to LOSE money before they can MAKE money.
I quit trading altogether for 2 weeks to clear my head. I could have quit permenanantly, but, I realized I liked trading too much despite losing a considerable amount of my hard-earned cash. Then, I decided to return to demo trading until I can be consistently profitable however long this takes. (Even if it takes another 5 or more years).
I won't risk any more real money until I feel very comfortable and have proven to myself I can trade successfully for atleast 6 months (possibly a full year)without large drawdowns and a gradually increasing account equity.
Eventually, I beleive I can trade with a consistently increasing equity curve. It's just a matter of time. I'm optimistic about the next 6 months
The two books mentioned above are very good. I have read both of them several times. Van Tharp mentions though that the book is not for somebody who doesn't have basic knowledge of fundamental and technical analysis. Also, he mentions actual (at least demo) trading experience is recommended for better understanding of his book.
One needs to focus on the the "long-term" and be in it for the "long-haul" to be successful. But, learn as much as you can - as fast as you can. It comes down to the question : "How badly do you want to become a successful trader ?" Just don't be too over-anxious and over-agressive with your real money until you have proven yourself as a trader - and only you can be the judge of that.
I remind myself all the time :"I want to be trading the markets 5, 10, 20 or even 30 years from now !"
Anyways, good luck trading, and learning.
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