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Is Forex trading worthwhile?


      In Forex trading, just like in any other market with high uncertainty of the future result, the most important factor of trader's success is his psychological behaviour.
      It is a misconception to hope for automated trading systems, some kind of super Forex strategies. In fact, if trading is not accompanied by strict self-discipline and self-control of emotions, neither a scrupulous trading plan nor the results of fundamental and technical analysis will help a trader.
      What happens to a beginner when he comes to a dealing centre offering to work on the international financial market? Forex trading for the beginners is first of all psychology. Experienced trainers from brokerage companies have long ago studied the behavior of people who succumbed to the influence of publicity and were flattered by the high profits in a short period of time.
      When a person is driven by greed and desire for freebies, in fact at this point he is already caught in the net of managers. Then the treatment in the style of network companies follows, when you are told how much money you can get, how high profitability is possible, if you just start working with a little bit of your own capital. It means that the attention of newcomers is directed not on technologies and difficulties, but on perfect results in case of successful prediction of future exchange rates.
      Each company is ready to provide a working place where the trader may get training on a demo account, i.e. work on a trading simulator free of charge without having to invest the trader's own capital. However, the results of fake trading (because you do not pay real money for it, but virtual) may give good results and a beginner may mistakenly believe that his real-time forex trading can be just as successful.
      All these points are psychological traps, misconceptions and wrong conclusions. Therefore, psychology, as a human reaction to external environmental factors, is present here from the very beginning. A person who decided to embark on the difficult path of a Forex trader needs from the very beginning to have a critical eye on everything that is offered to him for free and for money.
      The hard way of making money in the Forex market
      Disregarding tempting promises you must learn to understand the market behavior which is shaped by the actions of politicians, big companies and central banks of the states. All of this is part of fundamental analysis, which allows you to predict the major trends (steady direction) of currencies in the foreseeable future.
      When after the training in the dealing centre a new trader starts real trading he is highly motivated, usually positively charged for hard and cautious trading. He has got good skills of graphical analysis, defines Fibonacci levels, sets stop-losses and draws correct trend lines. Also a beginner regularly analyzes news feeds, waiting for important news that experts recommend to take into account for making correct decisions when trading on currency and securities markets. The question "should I start trading?" is not even in his mind. He is raring to go and ready to tirelessly put his profits in the pantry.
      But what happens after one or three months of real trading when the deposit is running low, losses are piling up and the trader feels that Forex is a fraud? Someone begins to study additional literature, someone trawls the Internet, various forums, and sooner or later comes the understanding that not everything is as simple and easy as was promised by shillers of exchange trade. After all, all experience and knowledge of what has happened to currencies is based on the past, which has already happened and cannot affect the future in any way. But the future is uncertain and unpredictable.
      It seems like a lot easier than that. Choose a result from just two options: buy or sell. There's a 50% chance of winning. Not bad, in principle. But this game is called a negative-sum game, because for every transaction, i.e. entering the game, you have to pay a commission to the broker who brings you into the market, you have to pay a swap fee for moving your position overnight. Even with equal probability, your account will gradually decrease. And here again let us remember about the psychology of Forex trading, the two eternal companions of a trader - Fear and Greed. As a rule, a trader who has tasted failure begins to fix his profit quickly, not allowing it to grow, but may sit in a losing position for a long time, hoping that the market will soon turn in his direction.
      Why sober-minded people would never gamble in a casino for profit? Because they know they are playing against professionals who specialize in beating you. To do this, they use special techniques, methods and mechanisms. Why do we think it will be any different in a game as common as Forex? Here the same skillful managers develop strategies to attract clients, they take specialists (often from defeated gamblers) to train beginners, to teach them the basics of trading and market behavior. It is clear what such "gurus" can teach who want to recover their losses with the help of commissions for attracting newcomers.
      The most important thing to understand when you decide to trade with your own money is that you will never know exactly how the currency is going to behave at any given moment, you are always at risk of making a mistake. You will always be under tremendous psychological pressure from the fear of losing, making a mistake, losing your money. No rational arguments can stop you when you fall under the power of your own emotions. In addition, you run the risk of falling under a psychological addiction called gambling addiction.
      So is Forex trading worthwhile?
      If you treat trading as a game in the hope of getting a million-dollar jackpot overnight, then no, you shouldn't. Miracles are only in fairy tales or in the stories of managers of brokerage companies about the mythical people who earned millions by studying with this particular coach and now are living happily ever after somewhere out there in a very far abroad.
      Forex is work, and in order to achieve success here, you will need more than one year of hard work with very painful mistakes, which really hurt your pocket. So, in order not to feel agony for wasted money (and the money is usually not small), you should master your skills on a demo account, then switch to cent account, and only then, having made sure of the efficiency of your trading system, gradually move to real money trading, starting with small amounts. And good luck will come. After all, successful traders do exist, but there are much fewer of them than those who took everything from the market.

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