People ask, “Can I earn money from forex trading?” We already know that anyone can earn money from the currency exchange industry as a lot of people have been doing since time immemorial. The disturbing thing is that it is not an easy place to earn money from, contrary to what forex robot marketers may tell you. Just like every other endeavor in life, one has to work really hard to be successful. With a standing record of about 10% success rate, one might not really feel the zeal to trade forex.
WHY MAJORITY FAIL IN THE FOREX MARKET
There are a number of factors that contribute to the failure of traders in the. Some of the, are
- WRONG INFORMATION:
A good example of this is what marketers tell traders about making huge amount of money on a daily basis if the trade with their robots. You really need to get your facts right if you want to make money from trading forex.
- THE FOREX MARKET IS DECENTRALISED WITH NO OVERSIGHT
Anyone from anywhere can trade the currencies at any time of day. This is because the business is decentralized without oversight. That is to say that there is no governing body over forex traders or the forex market. It is open for all to trade in. Since it is this open, a lot of traders invest in it without any idea of what the market is all about. You must know that investing in currency exchange without a grounded knowledge of how things work is the most effective way of not making money.
- PSYCHOLGICAL EFFECTS:
While we are human beings and cannot deny that we are subject to emotions, it is important that we try our utmost best to combat out emotions while trading forex. This is why it is important to have the right information and from it, develop a good forex plan to help in trading. A trader with a well structured plan on how to trade the forex market stands the chance of not falling prey to emotions if the trader will stick to the plan.
There is a lot about forex trading that may people (even traders) do not know. To actually make a living from trading currencies, the best thing to do is to start right away to study the business, and demo trade before going live. Also bear in mind that there will be some losses somewhere along the way, but that is to teach one on what to do and what not to do while trading currencies.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.