The Forex market is a hard activity, difficult and is not suitable for all. With the trade of you can’t get easy money. All Forex traders lose money in the time of the trade. Only a small number of them is able to offset the inevitable losses with operations in profit. In particular, the 95% of forex traders lose money and in a short period of time, it is expelled from the market. This is caused mainly by the lack of planning of the operations, insufficient market knowledge, poor money management and risk management. Also the personal character affects the results. If you hate to lose or are a super perfectionist, you probably are going to be very difficult for you to adapt to the trading of currencies. If you don’t learn to control their emotions and if you don’t have the discipline, you can not be successful.
Forex trading is not for the unemployed or those that have a little bit of income. You must have at least 10,000 USD of capital for trading (in a mini account) that can are to lose. There is No waiting to open an account with a couple hundred dollars and become billionaires.
Forex is one of the most popular markets for speculation in all the world, as it is a huge market, liquid, and currencies have the feature of movement in the trends. Most of the people investing in the Forex market with the false hope of making a lot of money, but in reality, they lack the most important asset for trading: discipline. Trading, especially short term, is not for amateurs, and it is rarely the way to get rich quickly. Forex trading is not a system to get rich in a short time. Trading in Forex is a skill that is learned with time, with effort and suffering. Also expert traders are subject to periods of losses. There are No shortcuts, it takes a lot of time to become familiar with the Forex market.
The path you take to success is hard work. It is advisable to practice working with a demo account. You have to operate with virtual money the same way as real money. It makes No sense to open a demo account with $ 50,000 if then, in reality, you can open a real account with only 5,000 $. It is correct to put in the demo account the same amount of money could put on a real account. Do not open a real account until you operate profitably on a demo account (this can require many months).
It is advisable to invest in a single pair of currencies. The major pairs are the most liquid and therefore the margin is less. When it begins to operate, it is too difficult two follow more than one currency pair. To be successful in the forex market, as in all other aspects of life, you need hard work, dedication, a little luck, a lot of common sense and judgment.
Before you start investing in Forex, you should carefully consider the purpose of your investment, level of experience and risk tolerance. The most important thing is not to invest money that does not can you lose. There is an overweight exposure to risk in any type of trade. The market is open 24 hours a day, 5 days a week. This means that unexpected events may affect your investment while you sleep.
The most attractive aspect to currency trading is the high degree of leverage used. The leverage seems to be very attractive for those that want convert a small amount of money in a large amount in a short period of time. A high leverage refers to the speed with which an account wins or loses money. You can’t expect to make extraordinary gains without taking extraordinary risks. The leverage should be increased gradually with the increase of the profit in your account.
There are also other additional risks that affect investment in Forex. For example, losing internet connection, computer or server malfunction, failure to upgrade software, inappropriate usage of trading tools. A prudent investor must be prepared for unforeseen contingencies. In addition, beginners should always improve the quality of their trading, starting with a trial period on the demo, followed by a period with a mini account, and then switch to a real account if all tests are concluded as planned.