Why trade Forex?

Question

Hello. I have been studying for about 6 months the market of currency trading. Trying to tackle the learning curve and different analysis in this specific market. But I start to wonder when I read most articles and forum posts stating that only a few people profit yearly from this trading. If you do not profit, then why do you trade? It does not really make sense to me why someone would play/work such a volatile market not to make profit? Please someone enlighten me with their view on this. Thanks.

Answer 1

Hi
Yes, forex market is not for everyone as well as stock, cfd or metal trading. Those markets are very volatile but in the same way are very profitable.

Main reasons that 95% traders fail are:
- they don’t keep money risk management rules,
- greedy,
- absence of patient while waiting good enter/exit point,
- poor knowledge of analysis,
- absence of trading system.

So traders who have trading system are patient, not greedy and keep strict money management rules always are successful. And of course there is no one trader in the world that had no loss. Actually the loss always exists but win/loss proportion should be not less than 7/3.

6 month it is very short term to make your own conclusions. 5 years ago I have lost my first deposit too as well as almost all traders in the world. But I don’t worry to say it while others conceal it.

I advice you to read and study those books:
Market Wizards by Jack D. Schwager;
Technical Analysis by Jack D. Schwager;
Comprehensive Course on The Wave Principle by A.J. Frost and Robert Prechter;
Candlestick Charting Explained- Timeless Techniques for Trading Stocks and Futures by Gregory L. Morris;
Trading Chaos – Applying Expert Techniques to Maximize Your Profit by Bill Williams;
New Trading Dimensions by Bill Williams

It helps you to create your own trading system and technique. Then start again practice on demo account. After your funds start gain on demo then you’ll be able to start with real account.

Everyone could slip and fall down and only the few ones could rise up and go ahead. Those ones are real Men.

Good luck!

Answer 2

Forex is not meant for individual investors. There is a new gimmick to trick people in thinking they could get rich though. I suppose you can if you know a major mover is about to dump alot of cash, but you need alot of money to profit from it. Something an individual investor can't do. Big fish can't do it either because heavy trades means you can't move your money that quick, which is why some can profit when banks or other huge entities dump their cash or buy up lots. Forex is used for international trade. Its how campanies can convert their foreign currence into something they can use. Banking institution needs it not only for trade but to help travelers.

Answer 3

Want to know how to trade the forex market successfully...go to http://www.4xmoneytrain.com
This system uses a hedging strategy and puts you in the 5% bracket of the people that make money in the forex market.
I am currently using this system with great success.

Answer 4

Most Forex trading is done by companies and banks to hedge their overseas investments and sales against fluctuations in the local currency- It is not in my opinion anything for an amateur to play with.

Answer 5

between the biggest issues to remember at the same time as it includes overseas funds on-line procuring and promoting is you want to stay emotionally calm and in an objective thoughts set. in case you provide in for your thoughts and grow to be an impulsive dealer, you'll with out delay lose funds interior the overseas funds market. the in common words treatment for emotional procuring and promoting is to predefine all elements of your on-line overseas funds procuring and promoting; you need to attempt this by coming up a concrete overseas funds procuring and promoting plan that describes each and every thing you'll do as you paintings at the same time with the market. the perfect on-line overseas funds procuring and promoting academic platforms grant you with a sturdy procuring and promoting approach so you might use to construct an powerful yet common overseas funds procuring and promoting plan round.