Should I be Forex Trading?Author: Martin Bottomley
I start with a warning that is issued by the National Futures Association, and is actually very sound advice. Never trade with money that if lost would adversely affect your life One of the great dangers of this business is that over the years some rather unscrupulous people have portrayed foreign currency trading as a very lucrative way to turn a modest sum of money into a fortune with ease....If only you had their training or their system. "It's like having your own personal ATM machine", and other such outlandish claims of riches with ease In fact I originally entered the Forex arena with just such beliefs. The reality is that trading foreign currencies is far from easy and is not best suited to everyone. Whilst it is possible to make a lot of money relatively quickly, it is also possible to lose part or all of your investment with the same speed.
Most people who are highly successful in any endeavour start off with a desire to do the work. As their knowledge of the subject grows, and their passion for the subject intensifies, they find that their level of success also increases.
It is rare indeed for anyone to achieve success in any field if all they entered that enterprise for was easy money. The only way to attempt to turn a modest sum of money into a large amount very quickly is to take some very big risks - not at all what forex trading is really about. If you want to take some hefty risks, then it might be far better to go to the roulette wheel and place all of your money on Red or Black and then cross your fingers. I am not trying to persuade anyone to not trade the forex market, but I do want you to be aware that there is considerable risk regardless of what trading system you may decide to use. On the upside, you can practice forex trading with a demo account which is funded with "virtual money" and practice the craft in simulated real conditions. The charts will be live and real time and you can win or lose your "virtual money" in exactly the same way as if you were forex trading for real, except that at the end of each forex trading session you have actual not put any of your real money at risk. By practicing in this way, every "would be" forex trader has the opportunity to see first-hand whether forex trading would be suitable for them, and bear in mind that one's own personality, emotional control and level of self discipline will have a major impact on the way that one trades. The secret to success in this business is to have a solid and reliable system that you have learned to trust. Then you must follow it to the letter through both wins and losses, using strict money management principles, knowing that the system, over time, generally produces more and bigger wins than losses.
Forget much of the nonsense that you may hear in the forums about setting goals of "just10 pips a day" etc. Trading does not necessarily work in that way. The market moves with no respect whatsoever for your goal.
You have to learn to take what is on the table, and at exactly what point in the move. Some days there will be lots of profit to be made. Some days there will not be much profit. Some days the market will take YOUR money. Some days will be NO TRADE days and you will need to have the discipline and emotional control to sit and wait and smile through them all. For all of these types of days are what go to make up a traders working life.
Forex trading can be one of the most rewarding business activities on the planet. It has all the elements of high success and high failure. It is demanding and has an above average level of risk which all adds to the appeal. But it is not a business to jump into with your life savings clutched in your hand and a burning desire to be rich.
If you have a couple of thousand dollars in cash and a family to feed and the car needs fixing and the rent or mortgage is due - Then it is highly likely that the forex markets will just part you from your money. In fact one of the biggest reasons for failure in this business is an under-funded trading account coupled with an urgent need to make some fast cash If you have a few thousand dollars or more put aside that if lost would not adversely affect you or your family, and if you have the time and inclination to learn how to trade first, then you may be able to turn that money into a worthwhile sum........OVER TIME. In that case, forex trading might be the line of investment business for you. Remember though!!! There are no guarantees of success in this business.About the Author:
Martin Bottomley is a full time professional forex trader, forex tutor, acknowledged author and co-developer of forex trading software including The Amazing Stealth Forex Trading system. Martin is also featured in the book "Converations with Forex Market Masters" by Dr Dariusz Swierk Phd. You will find more information at: http://www.stealthforex.com
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