The reason why I chose this kind of a headline and decided to write this article is NOT putting people off Forex trading. The major point is to keep the awareness of those aspiring traders who are willing to enter the Forex industry. Think of any job for which two people apply, for instance. Then one of them might be more suitable for it, than the other. Alternatively, even both are not. My point is that you CAN build up a great financial career with Forex and make the profits you want from home.
Well, this article is my receipt and if you want so, my-own-experience-born warning for you as well. Last years I managed to sufficiently increase my income, but I want to show you – the way to consistent profits is thorny. Ok, so here are my truths and my “story.”
1. Forex Trading is not a Lottery
Do not be mistaken to think that the riches will shortly fall on your head with Forex, like those with multimillion national lotteries. Furthermore, trading is far from a casino gambling. Las Vegas scheme of “50%-win chance vs. 50%-lose” should not suit a person who is willing to earn stable profits and do that for living. Of course, you may have heard of a high leverage and its use (you can trade hundreds of thousands of dollars with small capital). However, be more realistic do not hasten to get fortune in a day, but build it point by point.
2. Forex Robots are not 100% Way to Riches
Just Google “Forex robots.” Saw the offers..? “Star Wars” robotic world does not already seem to be so broad, does it? The fact is that Forex robots are everywhere nowadays. They offer you the non-worries trading strategy with constant profits whatever the market conditions are. The truth is that these virtual “cannikins” are mostly not reliable. They may boast with impressive back-testing results, but give you cardinally different ones when you actually start trading them.
3. Most Online Forex Products are Useless
That is more than right for those people who often see any Forex web-stuff, which is offered on a costly basis. Don’t get too disappointed – it’s generally useless. This is why now I am very careful with promoting different products because of the doubtful decency. Here, I want to paraphrase the famous proverb – verify and only then trust (and promote). Having “Business” with unworthy stuff steals your time and your money.
4. 95% of Currency Traders Fail in the Long Run.
Yes, successful Forex traders are rare species, and you must do everything in your powers to get into those 5% who actually make money. No matter, the exact success-failure figures brokers present, most Forex traders fail in the long run. However,… don’t be discouraged! The total number of traders across the globe is huge, and you may be the one to become a part of the “profitable .”
5. Lack of Discipline to Succeed
As not every football-player is sure to become next Pele, not every Forex trader will be profitable. Here success comes as a reward for great deal of discipline. And some claimants for financial happiness just don’t have the level of discipline needed.
6. Working Hard Does Not Mean Success
Yeah, succeeding in Forex and, for instance, getting your body trained with power lifting are two different things. Working hard in trading (“lifting” the charts) gives no guarantee of success. Oh, it may be frustrating. Imagine: your friend reaches profitability in a week or so, and your monthly chart-digging turns useless. That happens.
7. The Intelligence is Not an Advantage
You should not be Marylin Vos Savant with unbeatable IQ of 228 (world Guinness record) to succeed in Forex. Trading currency requires normal person abilities and not immense brain power. Of course, little math knowledge will be of use when you place a trade. However, a “standard” human mind has all the chances to be successful in trading currencies.
8. Forex Trader is a Loner
Not like Sting’s “Englishman in New-York” (he sang “an alien,” I think), but you will be alone when trading. Sitting at home and staring into your computer all day is not a super-agents life. Sometimes loneliness becomes your faithful friend. If your social life is poor, then you are on the right way to closing madness. Although it is fair to admit – working home will never make you late at work because of traffic-jams or snowstorm.
9. There is no Forever Profitable System
Forex is a constantly fluctuating market. And if you think that you finally developed the best system to make profits you should remember: there are no 100% ideal and beneficial systems in Forex. As market conditions have a stubborn ability to drastically change, your system may not be profiting in the following weeks or months. Be adaptable and prepare to adjust your systems according to changes.
10. Hard Times Even For Good Traders
Even a successful trader’s life reminds of a zebra. Its coat-pattern white and black stripes are very symbolic for trading in the currency. The main difference between a pro and newbie is that a successful trader is be able to limit the quantity of black stripes (losses) to minimum, but still he can’t postpone them at all. Therefore, you don’t have to worry if your system is still making money for you.
Article has been created by Alexander Collins, who likes auto Forex trading and makes it profitable for many Forex traders. Also please visit new Alexander Collins’ Forex trading blog, there you definitely find really great articles about Forex trading.
Find PipBurber on Google+: https://plus.google.com/114299061993276296858/
Source: http://alansforexblog.com/2011/12/09/10-home-truths-about-forex-trading/