Whilst checking out the Newbie Discussion forum over at Forex Factory I stumbled on a short thread about aggressive brokers.

I found it interesting because the original post talks about a new trader who, after one trade (a profit-making one), was prepared to move from a demo to a real account.

Luckily his friend was there to stop him and he subsequently wiped out his demo account.

The lesson to be learned is that until you are supremely confident in your own trading abilities you shouldn’t trade real money. I asked LiveConnect’s Jarratt Davis what you should look to achieve before you can be confident enough to trade real money. He said, “traders should stay on a demo account until they have acheived  a steady gain on their account over a minimum of 2 months using the same system consistently.”

Of similar significance is Jarratt’s suggestion of using one system consistently. Many new traders are guilty of system chasing which is ultimately the product of impatience and results in long-term losses in Forex trading.

Are you a confident trader?