Before you read any further, I just want to get this out of the way: Forex School
Forex trading is not a get a rich overnight scheme.
Like most things in life, it takes time, it takes patience, and most of all it takes work.
If you came in here hoping for some crazy plan to become a millionaire as quickly as you can, then you’re just wasting your time.
If you came here to wanting to learn, if you want to know why most people will not ever make money out of Forex, if you want to avoid the trap that snares people who come into this with unrealistic expectations, then by all means, read on.
What is Forex Again?
Some of you may be scratching your heads and asking what am I talking about here. Here’s a short explanation.
Forex, or FX, is the foreign exchange market. It’s the buying and selling of currencies as they fluctuate in value. Essentially, you buy currency and sell it back when the value increases, and vice versa.
“Oh, awesome!” I hear you say. You probably think you just discovered a new way to earn money easily. Before you do something stupid, listen to what I’m about to tell you next.
Why People LOSE Money with Forex
Let’s say there’s an aspiring trader, let’s call him Tim.
Tim follows some trading gurus on twitter, he subscribes to a proven strategy that a professional trader gave him, and he did a trading course on the internet, and he thinks he’s good to go.
So, Tim takes this valuable strategy he has, puts it into play, then he watches his profits increase. Which it does in fact… for a while.
Then Tim starts to see losses, which is inevitable, so he thinks: “Wait, something’s wrong with my strategy… let’s make some adjustments.”
“Okay, that fixes it”, Tim thinks, and again he loses money, so he adjusts his strategy again, then loses money again, and then again and again and again until he’s tired and throws his strategy away.
Then Tim picks a new strategy and the same exact thing happens.
The problem with Tim is that he came into Forex unrealistically, he just wants to see his profits grow without losing anything.
For more information: https://www.youtube.com/watch?v=Jn8v3AfyrX0
How can you avoid this happening?
How to Be Make Money with ForexForex School
You Need a Plan
You do not go to the gym the first time, pick up a barbell, and start lifting and expect to be The Rock after a month. Most likely you’ll just get yourself hurt. You need a realistic plan and some patience before you start to see results. It’s the same with Forex trading.
What you need is a strategy, fully understand it, know how it performs in good and bad times, test it properly, and stick with it.
If you’d like to come up with your strategy, the best advise is to keep it very simple. Don’t complicate everything when you’re still starting out. Keep it simple. Once you’re happy with it, you should go and backtest it. You’ll need a backtesting software to do this.
If you’re having trouble formulating your own plan, there are a lot of reliable professionals out there that give out proven strategies and explain how it works. Just make sure you pick one from someone respected and reliable in the trading community, not just someone who wants to sell you something.
Whatever you do though, keep in mind that no strategy is perfect. You will lose some money, that can’t be helped. What you need to do is know how to deal with it. Just remember to follow to your strategy.
Psychology is a big element in Forex trading. If you invest a lot of money on your first time, that will surely stress you out and make you screw up.
You need to get the hang of it first. The valuable thing to cultivate when you first start is skill, not money. You need to know how to trade first before you actually earn a lot.
Keep this in my mind. Don’t let greed get to your head. Be patient and allow yourself to develop into the trader you need to be before you deal in large amounts. Remember, you’re in this for the long term, give it some time, grow your skills first.
Avoid Getting Scammed by Brokers
If your broker is offering you a ridiculous amount of leverage, you can be sure they’re out to scam your money out of you.Forex School