Since the invention of money, there have been schemes going around by which you can supposedly acquire more of it with minimal effort. Foolproof strategies that will turn your $100 into $10,000 in next to no time. Perhaps the strangest thing is that since the internet age arrived, the number of such schemes might have multiplied, but we have also become a little less naïve and a touch more cynical.
So what does that have to do with forex trading? Well, look at it this way: Go onto one website, and you will be told that trading Forex can genuinely lead to gains of that magnitude. Then look on another, and that will say that if you are a novice trader, there’s a 95 percent likelihood that your $100 will transform into $10.
Which site is right? When it comes down to it, the answer is both of them and neither of them, which, like so many things in this world, is not entirely satisfying. The point is that the forex market is and always has been a place where anyone who knows what he or she is doing and follows a sound trading strategy can make some good money. $10 into $10,000 in next to no time is definitely on the over-optimistic side, but still, good money.
But the cynical site is also right in that forex trading is one place where there seems to be an abundance of fools rushing in where angels fear to tread. Throw money at any investment without understanding what you are doing, and you might as well take it to Vegas and feed it to the slots.
Take your time
Until recently, amateur investors gave forex a wide berth because it seemed more complex than conventional trading in stocks and share. And guess what – it is. It takes more to becoming a trader than reading the financial pages and watching Bloomberg for half an hour, so the first thing to do is find a broker via an independent site like http://trustedforexbroker.com/, set up your practice account and start learning.
The internet has a habit of making everything seem so simple that any of us could now perform a heart transplant or pilot the space shuttle. While the forex market might not be quite the massively complex beast it looked like 20 years ago, it still takes time and effort to really understand it, as well as a basic grounding in mathematics and statistics.
Where most people go wrong is in failing to invest the time and effort. If you seriously want to make a success of trading, devote the necessary hours to learning about the different forex tools and indicators.
Stick to your plan
Knowing that you need a strategy and creating a plan is one thing. But for many who are new to forex trading, the bigger challenge is resisting the temptation to throw it all out of the window the moment something doesn’t go right. Sure, you will want to make some refinements as you become more experienced, and that’s fine. The danger is when you start trading differently in reaction to something that has not gone your way. Start chasing the losses, and disaster will follow, so roll with the punches and keep to your strategy.
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