Awareness # 2- Let’s See What Happens Trading There is NO penalty for just putting on any trade at any given time in a demo account. Because there is no penalty when demo trading a trader can fall into the habit of not putting on a stop loss, not managing the trade, and just letting it go, thinking lets see what happens. They also might think it will come back having the lets wait and see attitude. Every once in a while a trade does go in the favor of the let’s wait and see what happens trader. When this happens we will hear about how much they made on that trade. When you are around this type of trader you can tell when they were lucky because they tell you how much they have made but they get quiet when they are stuck in a losing trade or are losing on most of their trades. Traders should never fall into this type of trading because it will set them back in their learning curve. There is a chance that they will never recover and stop trading altogether. They are developing bad habits and they don’t even realize it. They are short changing them selves on their trading education. When a trader does this type of trading they are just playing games and will probably not take trading seriously enough to become a good trader. A Trader has to have discipline to make a go of becoming a successful trader. The let’s see what happens trader does not have a trading plan they probably have not purchased a trading system to give them the foundation to understand the basics of the currency market. They probably have not put in the time studying babypips.com so they know what the market is all about. In most cases they can’t even work the basics of their trading platform. Now there is the trader that can talk the language and name all the popular indicators not knowing how to use any two of them together. They lack the discipline to learn good money management techniques. If they have opened a live account they blew it up and are back playing with a demo account implementing their bad habits saying “I am demo trading and will see what happens”. That brings us to the person that thinks that trading with an Expert Advisor (EA) is the ultimate answer to trading. (Automated trading program that automatically does the trading for you) This type of trader spends a lot of time back testing as many EA’s as they can find. They do not take time to learn anything about trading because they are looking for the Holy Grail. They say I am going to see what happens with this EA, when it does not work out they move onto the next EA to see what happens. EA’s have their place. If a trader has the trading background they would soon learn that they still need discipline and market knowledge to implement the EA when it was programmed to work and know when to turn it off when the market is moving differently than how the EA was programmed. If a trader is going to have a chance at becoming successful at trading they have to take charge of there trading live. They cannot wait and see what happens. They need to demo trade to learn how all parts of trading works. They must be careful when demo trading to not fall into the habit of thinking lets see what happens.
