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Before we go any further, we are going to be 100% honest with you and tell you the following before you consider trading currencies:
1. All forex traders, and we do mean ALL traders, LOSE money on some trades.
Ninety percent of traders lose money, 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 gazillionaire.
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 one of the most difficult, but financially rewarding, endeavors known to man (and woman)?
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!
Forex Trading is NOT a Get-Rich-Quick Scheme
Forex trading is a SKILL that takes TIME to learn.
Skilled traders can and do make money in this field. However, like any other occupation or career, success doesn’t just happen overnight.
Forex trading isn’t a piece of cake (as some people would like you to believe).
Think about it, if it was, everyone trading would already be millionaires.
The truth is that even expert traders with years of experience still encounter periodic losses.
Drill this in your head: there are NO shortcuts to forex trading.
It takes lots and lots of PRACTICE and EXPERIENCE to master.
There is no substitute for hard work, deliberate practice, and diligence.
Practice trading on a DEMO ACCOUNT until you find a method that you know inside and out, and can comfortably execute objectively. Basically, find the way that works for you!!!
FAQs
Forex trading may make you rich if you are a hedge fund with deep pockets or an unusually skilled currency trader. But for the average retail trader, rather than being an easy road to riches, forex trading can be a rocky highway to enormous losses and potential penury.
Can you actually get rich from forex trading? ›
Can someone get rich from forex? The answer to this question is not a simple yes or no. While it is possible for individuals to achieve significant wealth through forex trading, it is not a guarantee. Many factors contribute to success in forex trading, including skills, knowledge, experience, and resources.
Can a forex trader make a living? ›
While there are risks involved, with the right approach, Forex trading can provide a fulfilling and potentially lucrative career path. In the end, the decision to make a living through Forex trading is a personal one that should be carefully considered.
How much can forex traders make a day? ›
On average, a forex trader can make anywhere between $500 to $2,000 per day. However, this figure can vary significantly depending on market conditions, trading strategy, and risk management techniques. Some traders may make more than $2,000 in a single day, while others may make less or even incur losses.
Can you realistically make money from forex? ›
Yes. It's possible to make a profit with even a small investment and, over time, this can grow. You should always remember to only invest the amount of money you can afford to lose. No matter how careful you are, there are always risks when you make trades and there is always the potential to lose money.
Can you turn 100 into 1000 in forex? ›
Many forex brokers provide flexible leverage that can reach 1:1000, which can really magnify your gains but also your losses. In that sense, if you know what you're doing or you just simply got lucky, you can easily turn $100 into $1,000.
Do billionaires trade forex? ›
Even billionaire forex traders like George Soros and their hedge fund companies achieve an average annual return on investment of 20%, and their investors are happy with it. However, it's crucial to remember that trading comes with inherent risks, so it's advisable to manage expectations.
Are there forex millionaires? ›
The answer is yes. In the year 1992, a person named 'George Soros' made one billion dollars by trading in currencies.
Is forex trading like gambling? ›
So is Forex really a gamble? Many traders who are into Forex trading approach this full-fledged business in a somewhat hazardous way. This, of course, does not bode well. While it may seem that Forex trading and gambling have a lot in common - after all, both are primarily games of chance - the opposite is often true.
Is trading forex really worth it? ›
Forex is the largest and most liquid market in the world. Trillions of dollars worth are exchanged every day. A career as a forex trader can be lucrative, flexible, and highly engaging. There is a steep learning curve and forex traders face high risks, leverage, and volatility.
The $25,000 minimum equity requirement refers to the minimum amount of capital that a day trader must have in their account in order to engage in day trading activities. This requirement applies to both pattern day traders (PDTs) and non-pattern day traders (non-PDTs).
How hard is forex trading? ›
Forex trading for beginners is extremely hard, it requires hours of hard work. Traders need to stay updated on the news daily. Developing and testing new strategies also takes a lot of time. All in all, it's not something people can do in a week.
How long does it take to learn forex? ›
Most traders say it takes at least six months to a year. Start by learning the fundamentals and comprehending currency pairs, market dynamics, and trading strategies from reliable sources. Before making the switch to live trading, practice on demo accounts for at least three months.
Can a beginner make money in forex? ›
You will nevertheless have to invest your time and energy, but it is true - you can start with $0 and make millions. Just like those billionaires. You can always start with demo-contest or an affiliate program. Read about the ways of earning money at Forex without the initial capital.
What is the success rate of forex trading? ›
Many people start trading Forex with the hope of getting rich quick, but the reality is that most Forex traders fail. So, how many people actually succeed in Forex? The exact number is difficult to say, but estimates range from 5% to 10%. This means that the vast majority of Forex traders lose money.
Is it possible to be a successful forex trader? ›
Anyone can make money in the forex market, but it requires patience and following a well-defined strategy. Therefore, it's important to first approach forex trading through a careful, medium-term strategy so that you can avoid larger players and becoming a casualty of this market.
Can you make money with $100 dollars in forex? ›
Trading forex with only $100 in your trading account can be a difficult task, but it is possible. If you follow these four simple steps, you can make your first forex trade with just $100 and increase your profits over time.
How much money do day traders with $10,000 accounts make per day on average? ›
On average, day traders with $10,000 accounts can make $200-$600 per day, with skilled traders aiming for 2%-5% returns daily. So, it is possible to achieve a daily profit of $200 to $600 with a $10,000 account.
Ninety percent of traders lose money, largely due to lack of planning, training, discipline, not having a trading edge and having poor money management rules.
