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Forex Trading is NOT a Get-Rich-Quick Scheme. Forex trading is a skill that takes time to learn. Skilled traders can and do make money in this field.

Before we move ahead, we will be completely honest with you and tell you the following before you consider trading currencies:

1. All forex traders, and we do mean ALL traders, LOSE money on some trades.

Ninety percent of traders lose money, largely due to a lack of planning, training, and discipline. They also lack a trading edge and have poor money management rules.

 If you hate to lose or are a super perfectionist, you’ll also probably have a hard time adjusting to trading because all traders lose a trade at some point or another.   

2. Trading forex is not for the unemployed, those on low incomes, are knee-deep in credit card debt or who can’t afford to pay their electricity bill or afford to eat.

You should have a trading capital of at least $10,000 (in a mini account) that you can afford to lose.

Don’t expect to become a billionaire by opening an account with a few hundred dollars.

Because of its enormous size, liquidity, and currency’s tendency to move in strong trends, the forex market is one of the most popular markets for speculation.

You’d think that traders all over the world would be making a fortune, but success has been limited to a very small percentage of traders.

The issue is that many traders come with the misguided expectation of making a fortune, but they lack the discipline required to truly learn the art of trading.

Most people lack the discipline to follow a diet or go to the gym three times per week.

If you can’t do that, how do you expect to succeed in one of the most difficult, but financially rewarding, endeavours known to man (and woman)?

Short-term trading is NOT for inexperienced traders, and it is rarely a way to “get rich quick.” You can’t make huge profits without taking huge risks.

A trading strategy that involves a high level of risk results in inconsistent trading performance and large losses.

A trader who does this probably doesn’t even have a trading strategy – unless you call gambling a trading strategy!

Forex Trading is NOT a Get-Rich-Quick Scheme

Forex trading is an SKILL that requires TIME to master.

Skilled traders can and do profit in this market. Success, like any other occupation or career, does not happen overnight.

Forex trading is not for the weak of heart (as some people would like you to believe).
Consider this: if it were true, everyone trading would already be millionaires.

Even expert traders with years of experience can suffer from periodic losses.

Keep this in mind: there are NO shortcuts in forex trading.

To master, a great deal of PRACTICE and EXPERIENCE are required.

There is no substitute for diligence, hard work, and deliberate practise.

Practice trading on a DEMO ACCOUNT until you find a method that you understand completely and can execute objectively. Simply put, find a method that works for you!!!

Is Trading Forex Profitable?

Forex trading can be profitable, but timeframes must be considered. It is simple to be profitable in the short term, such as days or weeks.

However, being profitable over multiple years is usually much easier when you have a large amount of cash to leverage and a risk management system in place. Many retail traders do not last more than a few months or years in forex trading.

Is Forex High Risk?

Although forex trades are limited to percentages of a single point, they are very high risk. The amount needed to turn a significant profit in forex is substantial, and so many traders are highly leveraged.

The hope is that their leverage will result in a profit, but more often than not, leveraged positions increase losses exponentially.

Is Forex Riskier Than Stocks?

Forex trading is a different style of trading than most people use to trade stocks. The majority of stock traders buy and hold stocks for months or years, whereas forex traders trade by the minute, hour, and day.

Because of leverage, the timeframes are much shorter, and price movements have a much more pronounced effect. A 1% move in a stock is small, but a 1% move in a currency pair is significant.

Is FOREX a good way to make money?

Yes, if you put the work into it. Just like in any other area of life, it takes time to learn to trade and to become consistently profitable.

If you’re not willing to learn or think there are some shortcuts in trading, you’ll probably blow your account.I follow the markets every day and update my sheets regularly to reflect the new market conditions.

There’s no way around reading all the monetary report statements, central bankers’ commentaries, and other market reports if you want to stay in the game in the long run.

Trading is a unique experience: it takes discipline, patience, and a passion for the markets. If you don’t have those qualities and are just chasing the quick money, I bet you won’t make a dime on the market.

The Bottom Line

If you still want to try your hand at forex trading, you must limit your leverage, use tight stop-losses, and use a reputable forex brokerage. Although the odds are still stacked against you, these measures may help you to some extent level the playing field.

FAQS

How much do forex traders really make?

Even though, thanks to leverage, a dedicated forex day trader with a good strategy and a good win rate and risk/reward ratio can make between 5% and 15% per month. Remember that you don’t need much money to get started; $500 to $1,000 is usually sufficient.

Can forex make you a millionaire?

Can I make a million dollars trading forex? It is possible, but not simple. There are numerous factors that contribute to becoming a millionaire forex trader, and it takes a significant amount of hard work, dedication, and discipline. However, if you’re willing to put in the effort, you can make a lot of money trading forex.

How much can a beginner make on forex?

In 2022, a successful beginner can earn around $100 per day at Forex if he deposits at least $200, trades the EUR/USD currency pair with leverage of 1:100, and utilises a successful aggressive strategy. The bigger your deposit, the bigger your profit.

Who is the most profitable forex trader?

Here is the list of some of the best Forex traders in the world:
George Soros.
Stanley Druckenmiller.
Bill Lipschutz.
Andrew Kreiger.
Paul Tudor Jones.
Michael Marcus.
Richard Dennis.
Bruce Kovner.

Which trading can make you rich?

You can become rich and powerful through stock trading or day trading, and there are many examples of successful day traders, but it will require a thorough understanding of the market, in-depth knowledge of concepts, and your psychology and controlled emotions.