I start with a warning issued by the National Futures Association, and it is actually very strong advice. Never trade with money that, if lost, would negatively affect your life. One of the great dangers of this business is that, over the years, some unscrupulous people have presented currency trading as a very lucrative way to turn a modest sum of money into a fortune with ease… If so you only had his training or his system. “It’s like having your own personal ATM,” and other extravagant claims of riches with ease. In fact, I originally entered the Forex arena with such beliefs. The reality is that forex trading is not easy and it is not suitable for everyone. While it is possible to make a lot of money relatively quickly, it is also possible to lose some or all of your investment just as quickly.
Most people who are very successful in any endeavor start out with a desire to get the job done. As their knowledge of the subject grows and their passion for the subject intensifies, they find that their level of success also increases.
In fact, it’s rare for someone to achieve success in any field if all that went into that venture was easy money. The only way to try to turn a modest sum of money into a large amount very quickly is to take some very big risks, which is not at all what forex trading is really about. If you want to take considerable risks then it might be much better to go to the roulette wheel and place all your money on red or black and then cross your fingers. I am not trying to dissuade anyone from trading the forex market, but I do want you to know that there is considerable risk involved no matter what trading system you decide to use. On the plus side, you can practice forex trading with a demo account that is funded with “virtual money” and practice the trade under simulated real conditions. The charts will be live and in real time and you can win or lose your “virtual money” in exactly the same way as if you were trading real forex, except that at the end of each forex trading session you have not put any your real money at risk. By practicing in this way, every “wannabe” forex trader has the opportunity to see first-hand whether forex trading would be right for them, and to realize that one’s personality, emotional control, and level of self-discipline will play a role. high impact. impact on the way one trades. The secret to success in this business is having a solid and reliable system that you have learned to trust. You must then follow it to the letter on both profits and losses, using strict money management principles, knowing that the system, over time, generally produces more and larger profits than losses.
Forget much of the nonsense you may hear on forums about setting goals of “only 10 pips a day” etc. Trading doesn’t necessarily work that way. The market moves without any respect for your target.
You have to learn to take what is on the table, and exactly at what point in the play. Some days there will be a lot of gains to be made. Some days there will not be much benefit. Some days the market will take YOUR money. Some days will be NO EXCHANGE days and you will need to have the discipline and emotional control to sit back, wait and smile through them all. Because all these types of days are what make up the working life of a trader.
Forex trading can be one of the most rewarding business activities on the planet. It has all the elements of high success and high failure. It is demanding and has an above-average level of risk, which adds to the appeal. But it’s not a business to go into with life savings in hand and a burning desire to be rich.
If you have a couple of thousand dollars in cash and a family to feed and the car needs repair and the rent or mortgage is due, then there’s a good chance that the forex markets will just rip you out of your money. In fact, one of the main reasons for failure in this business is an underfunded trading account coupled with an urgent need to make some quick cash. family, and if you have the time and inclination to learn how to trade first, then you can turn that money into something worthwhile… OVER TIME. In that case, forex trading could be the investment line of business for you. Remember though!!! There are no guarantees of success in this business.