Why Most people will Fail Trading the Forex Market

Why Most people will Fail Trading the Forex Market

by Marvin Evans

The lure to be a currency trader is the 3 Trillion dollars traded daily in foreign currency. You hear about the possibility of making money from home in excess of a 6 figure income. What you may or not have heard is that it is also very very risky. But it does not have to be if you do it slowly and correctly. So how do you do it slowly and correctly? First thing you must understand is that those who are successful treat Forex trading like a business but a special kind of business. Just like a business your first year or two will result in a loss. The most successful traders are not successful until their 5th year. This is why you need to take it slow and only, I repeat only, use money you can afford to lose. Remember your first year will be a loss. You can start with a demo account but let me tell you from experience a demo account is not the same as a real account. Your emotions are not the same and it is your emotions that are your biggest hurdle in your pursuit to being successful. You may think that the Pro's can predict where the market is going. They cannot predict or control the market. If you cannot control the market or even predict where the market is going so how do you make money? Answer, by following a few basics in forex trading. As I mentioned earlier you must start with a small account. Some brokers will let you start with as little as $300. This is a mini account. You can trade as little as a nickel per trade. You will not make a lot of money but it will give you emotional experience. This is very important in your quest for success. Next you will need to learn the basics. Learn candle formations, how to draw trend lines, and how to read announcements, if you want to trade non-technical information. Even if you are going to trade using technical analysis it is still a must to be familiar with announcements. Next you will need a system to trade. This is where you can lose a lot of your time and money if you are looking for the "holy grail" of systems. I have spent thousands of dollars looking for the greatest forex system that would make me mega money in a short period of time. Guess what I found? IT DOES NOT EXIST. Let me repeat that. IT DOES NOT EXIST. Some systems are better than others but you will not find "the holy grail". There are some good systems out there to get started with. I have reviewed several and have had success with them, but only after I was able to think about trading with a specific mind set. I want to keep this short so I will go into that in another article. Here are some of the systems that I have found to be good systems. In the end it is not the system that will cause you to lose money. It is that thing between your ears that will cause your profits to disappear and frustration to kick in unless you look at trading differently than the reason you were attracted to it.