Is Forex Trading Profitable? The Uncensored Truth!
Is Forex trading profitable? We're constantly being bombarded by advertising
messages claiming that the Forex is a perpetual bull market, with huge profits to be had for anyone who opens up a trading account. If you've traded Forex before though, you'll know that it's much harder to make money than you have been led to believe. The truth is, more people tend to lose money trading Forex than those who actually make a profit from it.Why is it so hard to make a profit when trading Forex? It's a combination of a lot of things really, from lack of market experience and knowledge to poor emotional control and discipline, but the most critical factor of all is that the whole system is actually set up to place you at a disadvantage. Due to the spread that every Forex broker charges, every trade you make is automatically more likely to make a loss than a profit. In other words, without a good trading strategy and execution, you'll suffer from a negative edge when trading Forex.
So Why Is Forex Trading Profitable For Some Traders, But Not Others?
So why is Forex trading profitable for a select group of traders? The reason why Forex trading is profitable for some traders, but not others, is because the winning traders have a strategy to overcome the negative edge and create a positive one. When I say strategy, I don't mean just the process of entering and exiting trades, but also how the risk is managed and how the trader manages his or her own emotions while trading. You can have a flawless trading strategy that has a positive expectation of gain, and still lose money if you don't execute the strategy well due to poor discipline or emotional trading.
I'm sure that most of this is nothing new to you, but it's very important for you to realize that you're starting out at a significant disadvantage due to the spread that you're paying. One characteristic of profitable traders is that they seek out the Forex brokers with the tightest spreads, because the lower the spread you are paying, the less of a disadvantage you are at when you trade. You'll find that you can instantly add hundreds if not thousands of dollars to your bottom line every year by just switching brokers, so make sure that you shop around for the tightest spreads.
The Bottom Line - Is Forex Trading Profitable For You?
While Forex trading may not be profitable for the masses, the most important question you've got to ask yourself is "Is Forex trading profitable for you?" If it isn't, then you have two choices: commit to learning what the profitable few do, or give up because you are starting out at a serious disadvantage. Once you've made a decision about whether you still want to continue with Forex, then you can begin to identify the areas in your own trading that needs work to build up a positive edge.
The first area where most people are lacking is that they don't have a winning trading system or strategy. Don't expect to just buy a trading manual from your local bookstore and make money by copying the strategies that you find in there, because it's not that easy. Developing a winning strategy or system takes time, but one of the things you can do to speed things up in this department is to buy a commercial automated Forex trading system which will do your trading for you. Just be careful to do your due diligence on any commercial system before you buy it, and monitor its performance stringently to make sure that it maintains its positive edge for you.
If you decide that you'd rather learn to trade on your own instead, be prepared to commit some serious time and money to learning the craft. You can't expect to master it and answer the question "Is Forex trading profitable for you" with a resounding "Yes!" anytime within the first six months to a year. Once you have the beginnings of a profitable trading strategy or system of your own, you should invest in coaching or mentoring from an experienced pro to help you develop consistency and eliminate the mistakes and bad habits from your trading.
So is Forex Trading profitable for everyone? As you can see, there's a significant amount of effort that goes in to developing a positive edge to Forex trading. Not everyone is willing to put in the work, but if you are one of the rare few that does, then I'm confident that you can ultimately answer "Yes!" when asked "Is Forex trading profitable for you".
by: DivisaFX Taylormade Burner 2.0 Irons For Sale At Wholesale Price Forex Trading Habits, Every Trader Should Exhibit A Newcomers Guide To Penny Stock Trading Concepts Is It Possible To Get The Low-priced Retailer Things Inside Diablo 3? The Special Japanese Green Tea Wholesaler E-mini Trading: The Dead Cat Bounce Stock Market Tips: A Great Technique For Boosting Your Trading Suggested Commodity Trading Platform Checkout What In Wholesale Wallet Wholesale Hats Have Swam The Present E-mini Trading: Can You Trade Retracements In A Trend? Forex Trading With Etoro Where To Find A Proven Forex Trading Course