The Forex market attracts lots of people all over the world from beginners to professional traders. It is a huge market with more than $4 trillion daily volume and almost every trader is determined to earn money on it easily.
However, the fact is that most of newbies lose their money during the first weeks.
Today’s article is the first of two which looks at the Forex trading market and whether it’s possible to consistently profit from it.
Supporters will argue that the Forex market offers a plenty of opportunities to earn money and improve life, but only a minor few manage to do so. Why is that? And, what things may really help to make money on Forex?
Take A Chance
The Forex market is significantly competitive and every broker works hard in order to make a better offer for its traders. Use it to your advantage! You might be able to get a slight edge by choosing the most generous leverage, the lowest commission or spread, and by taking advantage of bonuses (including no deposit bonuses which are really popular now) and contests.
The traditional approach says “Be careful, don’t trust anything your broker offers. Avoid promotions, bonuses and high leverages“.
However, as long as you can maintain your discipline (more on this below), you can actually use each of these in your favour.
Forget About Overconfidence
The price movement is unpredictable. Everyone knows it, but when traders build their strategies and review their back test results, it seems like they completely forget this simple fact. They think that other people are just not smart enough to build a strategy or to analyze the market, and that’s why they lose their money.
The truth is no technical analysis neither fundamental analysis can predict the market direction correctly. It doesn’t mean that you shouldn’t use them in your trading. It just means that you should be able to change your strategy and admit your mistakes. If you lose, you lose and the basic task is to cut your losses and not to prove that your strategy is good or that you’re more intelligent that other traders.
Arm Yourself With Patience
To be patient isn’t easy. People say “patience is a virtue” for a reason! “Fast is slow but continuously without interruption”, says the Japanese proverb, and it describes Forex trading pretty well.
Accept it, learn slow and relaxed, practice on a demo account before jumping in and trying to earn money on Forex. Don’t think you can make 100% profit in a couple of days, don’t believe scammers that sell expert advice that «guarantee 100% profit».
To put it in a nutshell, forex trading as well as any other business requires flexibility, patience and determination. It is not easy. Believe in yourself, learn from your mistakes and you might be one of the few who succeed.