Is Forex Trading the right choice for me?
Is Forex Trading the right choice for me? When people first hear about Forex Trading they fall in love with the idea of being a successful trader. However, they soon realize that they have not thought everything through properly and end up losing most or all of the money they invested. This article is aimed at helping those who have not yet made up their minds whether Forex Trading is right for them.
The hard truth
Please do not be fooled by the stories you hear of successful traders who make $20000 in a single trade. Do not be fooled by the Hollywood movies that show Wall Street traders making Billions of dollars overnight. Even though those type of traders do exist, their success in trading is the exception and not the rule.
Statistics say that approximately 90% to 95% of all new Forex traders never become profitable. However, there is a bright side to this statistic. If 90% to 95% of retail traders lose money, it also shows that there are 5% to 10% of traders who are successful and profitable. So why are the 5% to 10% successful? What makes them different from the other 90%?
One of the reasons why only certain people become successful traders is because of discipline. Successful traders have the right type of discipline to follow their trading plans and strategies. No matter what their emotions are telling them.
These traders have the discipline to follow proper money and risk management. They have the discipline to protect their accounts against excessive drawdowns. Disciplined traders never over-leverage their accounts. If you are a disciplined individual then Forex Trading will suit you well.
It is a blatant lie when scammers tell you that success in Forex trading is possible overnight. It will take lots of hard work and many months of studying and practicing. Forex Trading is one of the most difficult professions out there. If you are not committed then trader is not for you.
Forex Trading is a career. Just like other careers, you have to spend lots of time in order to become successful. If you want to trade Forex as a hobby you will most probably not be successful.
A hobby will always cost you money and is something you will most probably only do in your spare time. In contrast, if Forex Trading is seen as a business the aim is to make money and is something that you will make time for. Even when it is not convenient. You might be asking, “is Forex Trading the right choice for me?”, however, rather ask if you have what it takes to be successful in Forex Trading.
The thought of being able to work from home is very exciting for many people. However, not everybody has the right personality to work from home. Will you have the commitment and discipline to still get up early in the morning to “go to work”, even though your office is just a few steps away?
Will your personality be able to deal with the risk element in Forex Trading? As a retail trader you carry the full risk and responsibility for your account. Any wrong calculation on your part can cause you to lose large amounts of capital in a matter of seconds. Not many people can deal with that type of risk and responsibility.
Trading can be a very lonely business. You are all alone in your study in front of your laptop with only the charts to keep you company. Many people will not be able to sit in front of their desk and laptop for the entire day.
The motivation for beginner traders is the hope of making huge sums of cash in no time at all. However, Forex Trading is not a get rich quick scheme. If it was possible to make a million dollars with $250 in three months everybody would be doing it.
Your motivation for wanting to trade forex needs to be more than just making money. If the reason behind your desire to trade Forex is superficial then your will power to make it work will be superficial as well. Especially when the market is moving in ways that are out of the ordinary and you start facing serious risks to your capital..
Is Forex Trading the right choice for me? Only you can truly answer that question at the end of the day. Is Forex Trading really the career and the business for you? It is definitely not for everyone. The prospective trader needs to make sure they have what it takes to make it in the Forex industry.
We hope that this article has given some insight into some of the things that forthcoming traders need to consider before jumping into trading. If, after reading this article, you believe you have what it takes to be successful in trading make sure to invest in good Forex Training Courses before you start trading with real money. Always start trading with demo accounts first.