There is no shortage of brokerage companies or trading education providers that run promotions to draw people into the financial markets. The Forex market, in particular, has been made very popular lately with a huge amount of new beginners gaining their first hand experience there. They are equipped with recently purchased ebooks, customised indicators, trading robots or “winning” Forex trading strategies without knowing anything about this industry or other markets.
Do you know the basics about trading strategies or just keep buying them?
Money making trading strategies (I don`t like the word “winning”) are embedded in trading systems or methods developed by good, solid companies or successful traders and they are mostly based on Technical Analysis. To find reliable strategies to trade any market at all you need to understand the system behind them. The trading systems professionals create and use have proper trade management incorporated in them which is the single most important element of success in trading! If you learn from professionals you will also be advised about market fundamentals and the risks involved in as well.
How can you make your trading profitable without the long initial “losing streak”?
First and foremost… it is not a “losing streak, it is incompetence! Trading is not gambling, there are lots of people who make money by trading securities and some are immensely profitably. Absolutely, it is possible to become a profitable trader and the process can be fun, exciting and rewarding and it can also be painful and sad, it depends on the way you go about it.What is the problem then?
Unless beginner traders get proper trading education the odds are not in their favour. Although ample warning is given about leveraged trading products a very large number of new traders still fail and often lose all their money simply by ignorance or careless trading. The promotions all suggest that it is quite possible to make a full time living or at least an additional income stream from active trading or day trading. Well, of course, these companies do not lie because it is possible, the more important question is what it takes to get to a proficient enough level of trading to achieve that.
How long does it take to train as a … plumber for example?
“Well… you should not really think about such silly questions. You do not need to look any further, our company is here to help. If you start plumbing with a very small amount of equipment, you do not need much initially at all, you will manage all right!”
Would you seriously believe this?
Or …”If you buy my plumbing robot it will make you a fortune, just program it once and every now and then keep an eye on it… OK, not working? How about buying my winning plumbing strategies ebook then?”A last warning…
Statistics show that percentage wise a lot more traders fail in the Forex market that in other markets.