Question by : At the beginning of my forex trading career give me some important tips or decisions?
Best answer:
Answer by Joe
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words “Forex” and “lose” to see this is the consensus.
Forex is similar to what we call a “zero sum” game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. The net winnings of everyone combined equals zero. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the “bets” in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: “Go to Forexcrap,com/q2347.” The “q2347″ is a signal to the Forexcrap site that you are being referred to them by “q2347.” If they sell something to you, “q2347″ gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
Read the warnings in the links below:
Add your own answer in the comments!
Make sure you are well educated about the market; too many traders come in thinking they will make a killing, then find out they are the corpse.
You are going to be playing against experienced, professional people equipped with high speed computers, real time news feeds, and likely inside connections to developing events. As a lone individual without these resources, can you really hope to make it big?
Look at yourself as a speedboat versus an aircraft carrier; you make money by being quick & flexible, not by going head-to-head with them.
If you want to be successful in forex trading. You must treat it as a serious business.
The reason so many people lose money is because they treat forex trading is game that can get them rich in very short time.
Trading forex can be very rewarding if you become really good at it. Believe me, it takes a lot of hard work just like any other jobs.
Most of people focus on finding the perfect system or signal providers but totally ignored most important things such as mindset, money management and how to develop a system/trading plan that suits you.
Read as much as you can and only trade demo when you first started until you can make consistent profits.
Next you can start trading with real money. Here comes the hardest part. You might not be able to make consistent profits like when you were trading demo because it’s your real and hard earned money. Keep reading and learning. Follow your trading plan.
Your first goal is not making millions in one year but to try not to lose money. There are just so much to learn about forex trading that you will just need to keep learning but it gives you freedom when you become good at it.
Hope this helps. Good luck!
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1. Only trade with risk capital. Never trade with money you cannot afford to lose (i.e., money for food, rent, etc.).
2. Many traders make the mistake thinking that profits are their first priority with forex trading. Your first priority should always be to protect your capital. Making profits should be your second priority.
3. With regard to forex scam products out there, stick to the old adage, “If it sounds too good to be true, it probably is.”
Good luck!
Try to surround yourself with the best traders and most profitable traders that you can. You will eventually take a little bit from each trader and form your own unique personality and trading style that fits you. You will learn the money management and psychology of the top traders that way. You can also pick up a few things that you can use in a trading system.
Then you can start searching on your own for a good system at forexfactory.com or babypips.com or another forex forum.
The most important thing though is to surround yourself with profitable traders and not losers. You need to have access to the best information and strategies to work with. If you have access to bad traders and bad information then the process can be delayed for years. So set yourself up for success and fast profits by learning from the right people. Choose them carefully.
This may help you by getting a forex trading robot like FAP Turbo or Leo Trader Pro. this reason I say that is trading with a robot will do the work for you. You can set back and watch your demo account and learn without risking real money! Please understand trading the forex is risky. The forex market is huge before you jump in and start practice trading..
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