Let’s go through some facts about online Forex trading:
- Forex trading involves high risk and by high risk, I mean very high risk.
- The failure rate in the industry is very high. So high that over 90% of traders from the entire trading community face loss at some point.
- More than 95% of the new traders are expected to drop out of the game within the first few years.
Going through the above facts, you might have got an impression that becoming a successful trader is impossible. Why then are there many successful faces in the field? The above-stated facts are true, but they do not mean trading is impossible. What they mean is that success in online Forex trading is for those with passion, patience, perseverance, and prudence. If you fear failure, you have to leave that fear at the door before stepping into the world of Forex.
Still wondering why the statistics of failure are so high in Forex? This should help clear them:
Most traders trade with their emotions
One loss; traders are outraged and many quits. Like in any industry, success in trading spot Forex too comes with risk and a few losses are unavoidable. Similarly, there might be times when you get extremely lucky at the beginning and then face loss a bit later. All these ups and downs are part of your trading journey, and these are times when you have to control your emotions.
Trade to live your dream, but don’t live in your dream
You might have seen advertisements that portray Forex as some “get rich quick” method. Forget all of them. Foreign currency trading is not a short-cut to getting rich instantly. To note down, the opposite might be true! Success in this industry follows two proverbs: “practice makes a man perfect” and “slow and steady wins the race”.
Trading without a plan
To successfully close a trade, you must be well versed with the market trends. Have a proven successful strategy that can get you profit. Further, your plan should also contain risk management to help you cope with times of unexpected loss.
Most traders fail to adapt to the market
Even before the market opens, as a trader, you should have a plan all set for the day’s trade along with a backup plan to manage failures, should you encounter one. The foreign currency exchange market is not a static one. A trader should have updated information on the latest trends along with a new and improved strategy to reap success.
Many have a notion that Forex means easy money
In order to achieve success in trading, you need to work hard and smart. The top traders around the world have worked very hard and failed several times before they built their strategy and made a consistent profit.
Consequently, avoidance of some of these trading pitfalls is the reason why women make better traders. They thoroughly learn first, have better control over their emotions, stick to the rules and play it safe. This behavior shown by women is very often time-consuming, but they build success over time.
Education is the very first step one has to take before moving on to real trading. Learn about the different currency pairs, the foreign exchange market, its trends, how to trade, and strategies by those who found success with trading, etc. Learn anything and everything possible before trading live on the trading platform.
We’ll now look at what are the different sources Trust Capital offers to help learn about online Forex trading.
Trust Capital’s knowledge depository consists of the following:
Forex mentors: Experts, who dedicate their time and knowledge to help you learn, assist and help to groom you into a successful trader.
Free seminars and webinars: Categorized into beginner, intermediate and advanced level sessions, they help in the learning cycle.
The E-book: Trust Capital’s E-book is the real deal. With detailed descriptions and illustrations, the E-book comes handy for every beginner.
Demo account: Practicing on a demo account is very important before you enter into trading on a live account. Trust Capital’s demo account comes with a free 100,000$ virtual money for you to trade and practice with.
So, why start late? Start today so that Forex becomes a source of income for you tomorrow. Start small one step at a time. Once you are familiar with the market and trading, slowly increase the amount you trade. Always remember to expect a loss but, discipline yourself and move on. Success will eventually find you.