tradersdna Academy – Forex Trading Education by Wayne Walker Part 6 – Making the Transition to Live Trading

In the sixth part of our Forex Trading Education video series, I’ll be talking about making the transition from virtual trading, using the free demo mode, to live trading with a funded account.

In the video clip, which can be seen above or on the IntelligentHQ video channel, I focus on three steps that you need to take with your demo account before you consider making the switch to live trading. These are:

  • Realistic funding levels: Most demo modes give you a huge amount of virtual money to trade with, but you don’t have to use it all. In fact, it’s much better if you use the same amount of virtual money that you would actually be able to fund your live account with. That way, you’ll get a much better idea of how it will feel to lose or gain those amounts, both mentally and physically. If you go from trading with hundreds of thousands of dollars in demo mode to trading with five or ten thousand in live mode, it will feel a lot different, and you won’t have developed a money management strategy that works with those amounts. So, if you have $5k to trade with, practice with $5k in your demo account first.
  • Real expected trading sizes: As with the funding levels, you need to make trades of the same size in demo mode as you might reasonably expect to in live mode. This ensures parity with the strategy that you will be using in live mode, making for a much smoother transition. So, if you are mainly going to be trading micro lots with your funded account, trade micro lots in demo mode so that you know just what you are getting into in terms of leverage etc.
  • Profitable trading: If you’re making a loss every week in demo mode, then it’s not a very good idea to make the switch to live trading, as it’s your own real money that you’ll be losing. While you can’t expect to make a profit every day, you should be coming out ahead at the end of every week before you even consider a switch to a funded account.

The Traders DNA Academy

This series of educational videos is part of the Traders DNA Academy, which is an online trading academy that is designed to help both novice and experienced traders learn more about trading currencies using a range of resources including:

  • Video Tutorials – Video can be a highly effective learning tool, especially for reinforcing concepts by explaining them in a verbal and/or visual way. Our video tutorials are intended as a complement to our written educational resources, but they can be dipped into in isolation just to give you a different perspective on trading or reinforce a concept that you have been wrestling with.
  • Resources for Traders – Information is the key to success in trading any market, and the Traders DNA Academy provides its students with access to lots of useful information such as lists of the top forex influencers on social media, guides to the best online trading communities, profiles of top traders and industry professionals, and interviews with forex industry thought leaders.
  • Platform Guides – Knowing the ins and outs of the particular platform that you use is just as important as knowing how to analyse the market, as you need to know how to use all the relevant functions without constant reference to the help menu. We provide tutorials in some of the most widely-used trading platforms, including MetaTrader 4.
  • Forex MBA – A modular online course covering all aspects of forex trading, from the first baby steps up to advanced strategies and techniques. Certificates are awarded for completing a module and passing the requisite assessments. Teaching materials include detailed tutorial articles with explanatory diagrams and screenshots, videos, webinars, and workshops.

Previous articles in this series

Traders DNA Academy – Forex Trading Education by Wayne Walker Part 1
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 2
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 3
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 4
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 5
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 7
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 8
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 9
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 10
Traders DNA Academy – Forex Trading Education by Wayne Walker Part 11