Forex seems like an easy way of making unlimited amounts of money once you master the trading strategies. But is it really that easy?
The promise of riches
Every person who wants to try Forex as a money making opportunity can quickly find numerous brokers on the internet that are willing to provide access to trading the world’s biggest market with a daily money flow of 4 trillion US dollars. They even allow new users to trade on a demo account, without paying a dime to get the feel of what it is to trade this gigantic market.
There are also many websites that provide free or paid trading tools, such as indicators, trading robots (EAs) and even signal services. It seems pretty easy, especially considering that you can re-invest your profits into more trading and become a millionaire pretty quickly.
All that looks great for a beginner, but once you start trading regularly, you start to realize that it’s not that simple.
The reality of Forex trading
There is a phenomenon called “beginner’s luck” and it applies to Forex no less than to any other market, game or gamble. When people start trading Forex on demo accounts, they usually get into profits at first. They get so excited by their advancement that they quickly open real accounts, add some real money and then… lose it all.
These people keep investing, changing strategies, thinking that the ultimate strategy is at the tips of their fingertips, but they keep losing in long term, eventually giving up and never coming back to Forex. You might think that based on this information, it is impossible to make money with Forex, and yet there are some successful traders out there.
So, what is their secret?
How to succeed in Forex trading
The answer is – there is no secret. The main quality of successful traders is that they never give up and understand that there is no “holy grail” in Forex market and there is no ultimate strategy or ultimate indicator. Every trader will lose some trades, but it’s the ones who’s profits exceed the losses that make a living as traders.
It takes a lot of time, patience and experience to learn how to properly trade Forex. In order to make consistent profits you need to forget about “get rich quick” strategies.
In addition, there is one important factor that many amateur traders overlook – the risk. Every trade in Forex has a risk, and the more money you’re trying to make with your balance, and the higher leverage you use – the higher the risk. Once the risk is too high, any big spike on the market can take you out by reducing your balance to zero. Therefore, maintaining a low risk is crucial in Forex trading.
The bottom line
Don’t get too excited about Forex. I know that it is easy to get sucked into the whirlpool of fun and promise of riches, but if you want to trade on the Forex market, you have to be serious about it. You should be disciplined and never risk more than you are willing to lose.
Please share this article on social media sites, such as Facebook and Twitter. The more of your friends will read this article, the more of them will avoid losing a lot of money while trying to learn how to trade the Forex market.
Also, if you want to learn how to trade, you can visit one of the well-know free educational resources about the Forex market and other similar trading markets: http://www.babypips.com
Image Credit: Pixabay
helpful? … then please share it
- John Jagerson, S. Wade Hansen
- Publisher: McGraw-Hill Education
- Wayne A. Corbitt
- Publisher: McGraw-Hill Education
- Edition no. 1 (10/11/2011)
- Josh Bright
- Audible Audiobook
- Neil Grey, Charles Duhigg, Benjamin Graham Graham
- Neil Grey
- Kindle Edition
- Ephraim A Archibong
- Publisher: CreateSpace Independent Publishing Platform
- Edition no. 1 (09/25/2013)
Last update on 2019-03-19 / Affiliate links / Images from Amazon Product Advertising API