The ultimate goal of all potential traders is to trade on the forex Australia market live. When you trade live you have the opportunity of making money and actually earning from your trading. However, before you start trading on the forex Australia live market you have to ask yourself two questions. These questions ensure that you are ready for the market in regards to your knowledge and the systems you have in place.
How Much Do You Know About Forex Australia?
Before you can trade live you have to consider how much you actually know about the market. To determine this you have to consider what you have learnt about the market and how you have learnt this. If you have completed a training course you have to think about what the course covered. You also have to consider whether or not you have practiced your skills. If you have not then you should not even consider trading live.
There are some things that you have to know about the market before you trade live. This includes what drives the foreign exchange rates and the terminology that forex traders and brokers will use. If you do not know what a pip is or what spreads are then you should not be trading live. You should also consider what you know about your trading strategy and the analysis you will be doing.
Some of the points that you should consider with the strategy is whether or not you know how it works. Do you know all the potential weak points and the potential profits that you can make. You also need to know about the market conditions you have to trade in and which currency pair you should be trading with the strategy.
Are You Able to Trade Simply and Safely?
The second question you have to ask is whether the trading you are going to be doing is simple and safe. While it is impossible to say that trading can be completely safe you have to consider the safety of your trading in relation to your risk tolerance. If your trading does not suit your risk tolerance then you should not trade on the forex market. Risk tolerance dictates the amount of risk you can take when trading without becoming emotional.
The simplicity of your trading is very important. Expert traders state that you need to keep all your trading simply from the currency pairs that you use to the strategy and charts you employ. Your strategy should be simple enough to be explained on a single post-it note. If you cannot do this then the strategy is too complicated and should be simplified.
You need to ensure that your charts are also simple. A problem that many traders face is that they have too many indicators on their charts. When you have too many indicators you will not be able to easily determine what you should be trading. The only indicators you should have on your charts are the ones you are going to use and the ones that actually aid your trading.