Listed below is a list that could be called the “Top Ten Reasons for Not Becoming a Forex Trader”, however, this list is not designed to discourage people from currency trading, as trading currencies can be an extremely profitable livelihood and you could earn an excellent income participating in Forex trading, working at home. Do keep in mind though, that you need to know how challenging it really is to start generating consistent earnings.
These are ten things you should consider, before embarking on a currency trading career:
1) Currency trading is not a get-rich-quick scheme.
A lot of people become excited about currency trading because they believe they will get rich within a brief period of time. However, though it may be attainable theoretically, a far more reasonable objective would be to develop a consistent income gradually, since this is an infinitely more feasible objective.
2) Automated trading programs will never make you wealthy.
Currency trading software abounds today, however, most of these pieces of software turn out to be unreliable. Although, it might have extremely remarkable results based on back-testing data, rarely are they able to deliver similar gains whenever you begin to use them.
3) The majority of foreign currency trading products and services offered on the internet are wholly ineffective.
Rarely are there over-hyped products that are sold on the internet, that are capable of producing the same kind of consistent profits that they claim. Changing market conditions make rigid trading bots ineffective.
4) Only a tiny fraction of Forex traders are consistently profitable.
It is thought that only 5% of traders make money, despite the fact that statistics coming from brokers show this particular number as higher than that in order to attract additional investors. Really, this number could just be a myth and many believe it is, however you should remember that Forex trading is just like any other business; the majority of start-up businesses fail and many beginners in the currency market fail too. At any rate the thing is that a majority of currency traders ultimately end up taking a loss in the long term.
5) You might not possess the self-discipline required to be successful.
The simple truth is that not everyone can become a successful currency trader. To become consistently profitable demands massive self-discipline and few people have this unique degree of self-discipline.
6) Working hard will not assure great results.
In a great many fields you may have a very long and productive career if you work hard. In currency trading this is no guarantee of achievement. You could research charts 24 hours a day every day for many years, yet still not develop a consistently profitable trading plan, while others may well create a profitable technique after a few months or even in less time. Working smartly is important; staying productive is what you need to do – don’t just work hard but work smartly and know what you are doing.
7) Extreme intelligence will not provide you with success.
Currency trading does not require extreme intelligence, but it does not hurt. Working long hours, learning specific techniques and having the discipline to follow your trading rules is a much better measure of success than natural intelligence.
8) Currency trading is actually a lonesome line of work.
Working from home gazing at your computer for hours on end is not fun, and the fact is that you are unable to escape from this lonely task. For this reason it is essential you lead a lively social existence simply otherwise you could very well become stir crazy.
9) Successful techniques may not continue being profitable forever.
Lots of people get energized once they finally build a successful trading plan. However, current market conditions may change and there is absolutely no assurance your technique will still be producing consistent earnings in the future. This means you should be flexible and able to modify your method appropriately.
10) Even the most successful Forex traders undergo periods of poor trading results.
There are many extremely accomplished traders in the market. However, everyone experiences negative results occasionally. You merely need to acknowledge these losing stretches as a part of the profession. Provided that your technique remains profitable, you have nothing to be concerned about.
In conclusion, trading currency, while it can be extremely profitable, rarely delivers the glamorous life that most people portray. Successful traders spend long hours alone and put up with hours of frustration that may never bear fruit. Learn to trade Forex in a way that fits with your personality and you will be both much more happier and profitable.