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Becoming rich in forexHow to Get Rich from Forex Trading

Trading forex is a relatively new asset class for the general public and has only really become possible for most of us since the late 90's when many of us started getting the internet connected at home. Before that, forex was the domain of the institution and if you were a forex trader it pretty much meant you traded stocks over the phone with your broker. The bad news for many newbie traders is that just because they can, doesn't mean they should and unfortunately many find that out the hard way. They start trading with no education or experience and lose their cash - quick! These failed traders spread the word that "all traders lose money" and that "trading doesn't work". Just because it didn't work for them, obviously it doesn't work for anyone else right?

Read more: How to Get Rich from Forex Trading

forex_success_smallForex winners

The percentage of winners  in Forex is a mystery.  Nobody knows it for sure. There is a theory that 50% of traders win since Forex is a zero sum game. In other words,  for every dollar earned on FX someone else losses a dollar. So on average, there's no profit. This is different from say, the stock market, where the average person can hold a package of stocks that appreciates over time.

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Forex Scams: Signals, Phony Investment Funds, Robots

Signal Sellers It seems like a new company springs up every day that has the signal service to beat all signal services.

They profess to be able to sell you information on which trades you should make. These signal sellers usually charge a daily/weekly/monthly fee for their service and usually do not offer anything that will help improve your trading. There is no such thing as having a magic key to the market and if there was, why would you sell it?

Read more: Forex Scams: Signals, Phony Investment Funds, Robots

Fear and Greed of Forex Trading

Fear and Greed are two emotions that must be controlled. The forex beginners will have a lot to do with these  emotions. When we read about the money a trader can theoretically make by trading forex he/she thinks about nothing but making a lot of money. However, forex trading is not gambling but it is not science either. Think about forex as a intelligent card game like bridge. There is a random factor in this game, but still the winners are those who have experience and follow some strategy. The thin like between gambling and executing your strategy should never be crossed. Many beginners succeed to have some good trades in their demo accounts at the beginning. So, they open a live account and invsest real money. As soon as they start trading they see the other side of forex trading and forex market. On the very basic level, when they win, they are greedy and want more, when they lose the greed will be replaced by fear. And so they swing between fear and greed like a pendulum.

Read more: Fear and Greed. The Pendulum Stage

Commitment, Knowledge and Ego

Many programs tell you that anyone can make money trading the currencies. But in the real world many of the beginners fail. Why do so those people fail ? 90% of trading is psychological; the other 10% is technical knowledge. So your success is based on how you approach becoming a trader. Here are the three main reasons why many beginners :

  • Lack of commitment.
  • Lack of knowledge.
  • Your ego needs to win.

Read more: Commitment, Knowledge and Ego

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  1. Risk and Leverage