It's true that most people lose money in Forex but have you asked yourself why? One of the problems is that most people have the wrong expectations in many senses. People see it as a lottery where you can get rich with no sweat but, it the truth is that it is a lot of hard work. We made a series of questions that you evaluate them and make sure you are ready to succeed at Forex.
How do you treat the Forex trading market?
If you think that Forex is a get rich fast opportunity then think again. Most of the beginners think they can start with small amount and become Donald Trump on the next day. Beginners need to realize that profit potential and risk walk together. Success on Forex is made with money protection and use of small leverage or even no leverage at all.
Do you want to have a result in a small amount of time?
This mistake is direct connected with the one you just read. Day traders need to be very experienced on the market to be successful. Trading every day you pay more commissions than on swing trading and it's worthy to remember that commission's fees are free but the spread need to be paid.
If you want to make money on day trading think that you basically need two things:
Make much more pips that you would need on a swing trading.
Without volatility you won't make any money, the only one profiting in this case will be your broker.
Do you think that make money in Forex is an easy task?
Forex is a complex and difficult market to work with. One thing it's for sure: you are just able to make money if you are good at it. Read everything you can about the Forex market it the key to open the doors of your success on this trading system. The best way for newcomers to get a handle on what currency trading is all about is to open a practice account and use it until you consistently make money.
Do you think you a smarter than the other traders?
Most of the failure we see in Forex happens with very smart, well educated people. Thinking that you are smarter than other trades wouldn't help here but will just make you more brave and give you the dangerous feeling that you don't need any of the exertion other people have to be successful and by doing that you can and will destroy your trader career.
How much work do you think it takes to make money in Forex?
Let me answer you with simple words: A LOT! Forex is a market where most traders lose money. If you want to have a personal different report from this huge amount of people that lose money you need to work very hard at it. Invest as much time you can reading, searching about the best products and tools to help you to increase your possibility of success.
Do you think your Forex broker can increase and also decrease your chances of making money?
First thing you need to consider is if your broker doesn't offer you a good platform or charts you already started behind. Learn as much as possible about it. Make sure they are regulated entity (preferentially in USA or in Europe) and also that they never ever trade against their own clients. Please visit our Forex brokers section to see reviews on Forex brokers.
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