As a professional forex trader , I know how difficult it is to make money in the foreign exchange market. It's a well-known fact that most people who trade forex online lose their deposit - just ask any forex broker how many accounts disappear for a period of 3-6 months. The easiest way to earn money is by using forex advisers.
The Internet is flooded with information that 80% to 95% of newcomers merge their accounts into forex. So why is this so?
I believe that this is due to a number of key factors that I will describe below.
Unrealistic expectations of traders
I believe that many people, starting to trade forex for the first time, have completely unrealistic ideas about what it means to be a successful trader and how much time, money (capital) and effort you need to spend to achieve success. There are no doubt many reasons why people think that forex is an easy way to make money, but I think the expectations of beginning traders are mainly created by dealing centers, automated robots (forex advisors) and so-called forex gurus.
Lack of knowledge
Another fact is that many traders simply do not have the appropriate education or training in the forex market, and as a result, eventually lose their deposits after they have faced the realities of this inexorable market. Note that I'm not talking about general education here, I'm talking about forex formation. Currency trading is one of many professions and you simply can not trade on Forex successfully without any appropriate education without practice, but people think they can, and soon realize that this is not the case at all.
Too emotional traders
Another important reason for failure is that many people are too emotional when it comes to trading, and in this case they trade with the "heart" and not with the head. In this case, one must rely on facts, logic, common sense, and not on greed, fear, anger, and pride, for these categories contribute to the destruction of their trading account. Let's face it, we're dealing with money here and we need a certain type of character to stay cool, calm and collected when things start to go wrong.
Non-compliance of trading systems
Trading systems exist or are being developed to help a trader trade more objectively and systematically with the help of statistical indicators, to assess the risk of an ongoing operation in the market. Like many other things, some forex trading systems are better than others. But, it is necessary to remember that they must correspond to the given style of the trader's work. What works well for one trader does not necessarily work for another. If, for example, a trader prefers intraday trading, they should use the appropriate intraday system. The coordination of the trader and the trading system, therefore, is another key to success in the market.
So what's the solution?
So what do we do to correct mistakes? Well, we do not have a magic formula, at least I have not met. If a person firmly believes that he can stay on the market and successfully trade, my simple recipe looks like this:
To begin with, do not be gullible and critical about the products of forex advertising and various websites that promise to easily and easily receive thousands of percent of profits.
Get forex education. There are many good free forex educational resources and websites on the Internet, as well as official paid courses. Once you are educated, you need to practice in trade. First you can trade on the cent account and only if you get stable results you can increase the size of the deposit. Develop for yourself a proven trading system that fits your style.
Almost two years ago we developed a fairly profitable trading system and programmed it into a forex adviser, which to us and to this day brings a good income.