The trouble with fx online trading is that it's been taken over by
"information" sellers and, to a lesser extent, by brokers, in order to
make money for themselves, not by trading in the fx market, but by
selling their own particular services to people coming into the market
for the first time.
When you read the sales pages of these people it's easy to form the opinion that making profits in this market is easy, as long as you follow the method being sold, or use the brokerage service being offered. A recent development is the "trading robot" that can, so they say, make all your trading decisions for you 24 hours a day and give you guaranteed profits. (Incidentally, I have experimented with one of these on a demo account, and though it gave regular profits of around 20 points a trade, it also led to one or two losing trades of around 600 points, which more than wiped out all the profits).
Something you'll no doubt have read from the sites selling these services is that over 95 per cent of people who come into the fx market lose all their money within a few months. This unfortunately is true - only 5 per cent or less of new traders survive, and no doubt those that do quickly learn that there are no massive fortunes just waiting to be made from fx, and that they have to satisfy themselves with more modest gains, often at great risk.
If you can differentiate the fx market itself from the way that most brokers and sellers of hyped-up "information" about it encourage you to trade it, then you will be incredibly better equipped to actually make some money from it.
Nearly all these people steer newcomers into day trading fx with a spread betting account using tight stop loss levels. In a market as volatile and unpredictable as the fx market this is little short of lunacy. The very few traders who do make regular profits from fx, or forex, hardly ever close a trade on the same day as it has been opened. Not only that, but they also tend to avoid spread betting altogether, or if they do then they use large stop loss levels so they can ride out any volatility until they reach their profit target.
Most successful traders in the fx market use alternative ways, such as covered warrants or ETFs (Exchange Traded Funds). This allows you to avoid the volatility of forex and also limits your risk in a way that spread betting does not allow.
What you, as someone determined to make profits from the fx market, has to do now is to learn more about how to trade in this way, and to do it from a successful trader who is willing to teach you. Not just someone who makes money selling phoney fx "information".
When you read the sales pages of these people it's easy to form the opinion that making profits in this market is easy, as long as you follow the method being sold, or use the brokerage service being offered. A recent development is the "trading robot" that can, so they say, make all your trading decisions for you 24 hours a day and give you guaranteed profits. (Incidentally, I have experimented with one of these on a demo account, and though it gave regular profits of around 20 points a trade, it also led to one or two losing trades of around 600 points, which more than wiped out all the profits).
Something you'll no doubt have read from the sites selling these services is that over 95 per cent of people who come into the fx market lose all their money within a few months. This unfortunately is true - only 5 per cent or less of new traders survive, and no doubt those that do quickly learn that there are no massive fortunes just waiting to be made from fx, and that they have to satisfy themselves with more modest gains, often at great risk.
If you can differentiate the fx market itself from the way that most brokers and sellers of hyped-up "information" about it encourage you to trade it, then you will be incredibly better equipped to actually make some money from it.
Nearly all these people steer newcomers into day trading fx with a spread betting account using tight stop loss levels. In a market as volatile and unpredictable as the fx market this is little short of lunacy. The very few traders who do make regular profits from fx, or forex, hardly ever close a trade on the same day as it has been opened. Not only that, but they also tend to avoid spread betting altogether, or if they do then they use large stop loss levels so they can ride out any volatility until they reach their profit target.
Most successful traders in the fx market use alternative ways, such as covered warrants or ETFs (Exchange Traded Funds). This allows you to avoid the volatility of forex and also limits your risk in a way that spread betting does not allow.
What you, as someone determined to make profits from the fx market, has to do now is to learn more about how to trade in this way, and to do it from a successful trader who is willing to teach you. Not just someone who makes money selling phoney fx "information".
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