Can You Get Rich By Trading Forex?

Before we go any further, we are going to be 100% 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.

90% of traders lose money, largely due to the lack of planning, training, discipline, not having a trading edge and having 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, low-income earners, credit card debtors or those who can’t even afford to pay their electricity bill or food.

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

Don’t expect to start an account with a few hundred dollars and trade to become a gazillionaire.

The forex market is one of the most popular markets for speculation, due to its enormous size, liquidity, and the tendency for currencies to move in strong trends.

You would think traders all over the world would make a killing, but success has been limited to a very small percentage of traders.

The problem is that many traders come with the misguided hope of making a gazillion bucks, but in reality, they lack the discipline required for really learning the art of trading.

Most people usually lack the discipline to stick to a diet or to go to the gym three times a week.

If you can’t even do that, how do you think you’re going to succeed one of the most difficult, but financially rewarding, endeavours are known to man (and woman)?

Short term trading is NOT for amateurs, and it is rarely the path to “get rich quick”. You can’t make gigantic profits without taking gigantic risks.

A trading strategy that involves taking a massive degree of risk means suffering 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!

3. Forex Trading is NOT a Get-Rich-Quick Scheme

It takes TIME to learn to trade in forex. Skilled traders can and do make money in this field. However, like any other occupation or career, success doesn’t just happen overnight.

Forex trading isn’t a piece of cake (as some people would like you to believe). Think about it, if it was, everyone trading would already be millionaires.

The truth is that even expert traders with years of experience still encounter periodic losses.

Drill this in your head: there are NO shortcuts to forex trading.

It takes lots and lots of PRACTICE and EXPERIENCE to master.

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

Practice trading on a DEMO ACCOUNT until you find a method that you know inside and out, and can comfortably execute objectively. Basically, find the way that works for you!!!

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Reprinted from babypips, the copyright all reserved by the original author.