Forex Trading Business - Can You Win Advantages and Pitfalls You Need to Be Aware Of
Most people who attempt Forex trading lose and it's a whopping 95% so should you try trading? Here are the advantages and pitfalls you need to be aware of to enter the elite 5% who make big profits...
First let's look at the advantages that can be turned into big gains
- You can learn a Forex trading system in a few weeks and operate it in 30 minutes a day
- No college education is needed and sex and gage is not a barrier
- You never face a recession there are always profit opportunities
- You only need a few hundred dollars to start
- You can leverage your investment by 200:1! Invest $200 and trade $100,000!
Now that's a lot of advantages - but These advantages have to be turned into profit and while anyone can learn Forex trading, most traders fail due to falling for Forex myths or having the wrong mindset. Let's look at the myths first.
The biggest myth is someone else can give you success, with an automated Forex trading system or predictive method. There heavily sold online but they don't work.
Check the track record and you will see, there all simulated track records knowing the closing prices and back tests and they all fail in real time, as of course you don't have the advantage of knowing the closing price in advance!
You don't get an income for life for $100 or so with no effort, that's fantasy not reality.
Other traders view Forex as easy and they can win because they work hard or are intelligent and neither of these traits help in Forex.
There are numerous myths of which the two above are the most common - but generally they all stem from not seeing Forex trading for what it is - a high risk high reward venture, where you have to trade the odds and employ strict money management and have the correct mindset.
Most traders who have a good method still manage to lose because they lack discipline. They believe that losing periods don't occur or won't last long but they do and you need to be prepared to take losing periods and keep losses small. If you can execute your trading system with discipline - you don't have one.
Discipline doesn't just come to you - you earn it, by your Forex education gaining confidence and knowledge which gives you the belief in your system and the discipline to follow it.
A Simple Way to Make Gains
Forex trading is essentially the combination of a simple method and the mindset to execute it - it sounds easy but is not that's why the rewards are so big.
Of course you can succeed, just don't expect Forex trading to be a walk in the park and make an effort to get a good education, then your Forex trading business can make you a great second or even life changing income.