1. All forex traders, and we do mean ALL traders, LOSE money on some trades.
Can you get rich by trading forex? A large percent of traders lose money.
This is largely due to lack of planning, training, discipline, not having a trading edge, and having poor money management rules.
If you hate to lose or are a super perfectionist, you’ll also probably have a hard time adjusting to trading because all traders lose a trade at some point or another.
2. Trading forex is not for the unemployed, those on low incomes, are knee-deep in credit card debt or who can’t afford to pay their electricity bill or afford to eat.
You should have at least $10,000 of trading capital (in a mini account) that you can afford to lose.
Don’t expect to start an account with a few hundred dollars and expect to become a millionaire.
The forex market is one of the most popular markets for speculation, due to its enormous size, liquidity, and the tendency for currencies to move in strong trends.
You would think traders all over the world would make a killing, but success has been limited to a very small percentage of traders.
The problem is that many traders come with the misguided hope of making a gazillion bucks, but in reality, they lack the discipline required for really learning the art of trading.
Most people usually lack the discipline to stick to a diet or to go to the gym three times a week.
If you can’t even do that, how do you think you’re going to succeed in one of the most difficult, but financially rewarding, endeavors known to man?
Short-term trading IS NOT for amateurs, and it is rarely the path to “get rich quick,” You can’t make gigantic profits without taking gigantic risks.
A trading strategy that involves taking a massive degree of risk means suffering inconsistent trading performance and large losses.
A trader who does this probably doesn’t even have a trading strategy – unless you call gambling a trading strategy!