This is a question we must decide right from the word go, why Trade Forex? Do we start trading to make quick money, a desired lifestyle, investment or just something to do like a hobby?
Like a lot of us I wanted the money but quickly learnt there was more to trading than just placing a trade. Once a new trader understands this their dreams are crushed and is where the saying 90% of Forex traders fail comes in.
Some of these traders become gamblers constantly funding accounts in hope to win the big one. There are those that have made it rich by doing this is a very short time. My advice to those if you have made it quit while you are ahead because it was only pure luck to where you got. From zero to hero and back again. I can say being a millionaire for a month is worse than never being a millionaire at all.
Unfortunately, a lot just won’t get it but hey for one to make a profit in this business we need those right?
Is it a zero-sum game??? There is a lot more to this answer than just plain black and white.
What is the reason why we would trade?
I put it down to making a profit, you are in it to make a profit. Whether you love trading or not it’s only for profit.
The only way to trade is the way that makes a profit. No text book or right way claimed by has been guru’s will either make it for you or not.
I was planning on becoming a certified technical analyst but have discovered you cannot think or even not permitted to think outside the box, and I didn’t want to be confined to the cookie cutter press. I have always wondered why every analyst whether that be fundamental or technical, I listen to on Blomberg has a different opinion on the market direction. Why is it that only a small percentage of analyst get it right?
I wanted to know how do banks and institutions trade Forex? What is market manipulation? What are market makers? Why is the system of exchange set up?
However thinking outside the box opens the doors to criticism.
These are all questions a trader needs to ask and endeavor to find out.