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| Mistakes of beginning futures and forex traders |
There are many so called opportunities on the internet promising vast riches for little work in the area of forex trading and futures trading. Statistically 95% of beginning forex traders fail and quit. In this article I hope to provide a little sane advice, to increase this percentage for the good of all.
If you are like me you were attracted to futures or forex trading because both financial arenas offer highly leveraged results, which means that your profit "potential" in the short term seems to be very high.
Human emotion such as hope and greed trigger at this stage as you see an opportunity to escape your daily grind, and get a better life for you and your family. There is nothing wrong with this, but it is at this point that I need to inject a dose of reality.
Remember - 95% of all beginning forex traders fail! I'm going to try your patience and repeat this.
95% of all beginning forex traders fail! This also applies to futures trading and just about any form of speculation.
The exact reason for this is that they have been sold an idea - a potential for profit and they just look at the goal. Now this is fine, but all goals to be achieved involve doing something.
There are no free lunches in this world.
This is the point that is not confronted. You absolutely MUST confront this point if you want to have any chance of success.
We have a couple of things working against us and it's not just the skill of trading that needs to be developed.
1. We are not used to getting something for nothing. Even if we win in trading we will believe that we just got free money and will unconsciously give it back.
2. We do not have the experience, even though we may have the education.
Knowledge without experience is shaky!
Therefore, to counteract these negative factors, we must have at least 2 things in place.
1. Trade a demo account for at least a few months until you can profit consistently from that.
2. Discipline to follow a trading system
3. A Money Management plan and policy.
Without taking at least these steps you are on very shaky ground and could be heading for the 95% class very fast.
I want you to be in the 5%
Author Info:
Graeme Sprigge is the webmaster of Emini Courses a web site reviewing Emini Day Trading Courses and Forex Trading Courses. |
posted @ 3:50 PM  |
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| Investing in Forex |
Investing in foreign currencies is a relatively new avenue of investing. There are considerably fewer people are aware of this market than there are people aware of several other avenues of investing. Trading foreign currency, also known as forex, is the most lucrative investment market that exists. There are several factors that make this true among which, successful forex traders earn realistic profits of one hundred plus percent each month. Compared to some of the better known investment markets such as corporate stocks, this is an unheard of return on investment. It's very necessary to mention here that a person who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and information surrounding the market. This very fact is what makes the difference between successful forex traders and other traders.
A few additional points, which create such powerful leverage for investors within the forex market are: The amount of capital required to begin investing in the market is only three hundred dollars. For the most part, any other investment market is going to demand thousands of dollars of the investor in the beginning. Also, the market offers opportunities to profit regardless what the direction of the market may be; In most commonly known markets investors sit and wait for the market to begin an up trend before entering a trade. Even then, investors, as a rule must sit and wait some more to be able to exit the trade with a nice profit. Given that the forex market produces several up, down, and sideways trends in a single day, it can easily be seen that forex stands head and shoulders above other markets. Additionally there are trading strategies, which are taught that provide for compounded profits; these are profits on top of profits. In addition, free demo accounts are available within the industry of forex trading, which facilitate the sharpening of skills without the risk losing any capital. And the advantage regarding the time factor in trading foreign currency is a very attractive point for any investor. Compared to one of the most sought after avenues of investing, which often requires forty or more hours each week, namely in the real-estate market, the forex market requires a much smaller demand on the investor's time. Forex trading requires approximately ten to fifteen hours each week to earn a full time income. It's easy to see that the advantages and great leverage that exist in the forex market, make it among the most lucrative, time liberating, and easy to enter by far.
I hope this information gives you a clear understanding of how you can turn your investing into a true method of making your money work harder for you.
Sincerely,
Joe Clinton.
About The Author
Hi. I'm Joe Clinton. I enjoy helping others learn valuable information that I've learned over the years. To learn more about this incredible market and how you can position yourself among the most successful investors in the world visit www.joeforex.com. Don't forget to sign up for the free report "Forex Freedom" and get a foundation in forex lessons. |
| posted @ 12:23 PM |
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| Why do Forex Trading? |
So.. you want to make lots of money in forex trading..? Well, before you get your feet wet....let me refresh your mind why forex trading is such a hot money maker...
Here's a few reasons why....
The cash/spot FOREX markets have certain unique attributes that offer an unmatched potential for profitable trading in any market condition or any stage of the business cycle. It leaves one to wonder why bother in the first place? The answer to that is very simple. Forex trading offers people who trade:
A 24-hour market: A trader has the chance to take advantage of all of the profitable market conditions at any time; which means that there is no waiting for the start like the New York Stock exchange.
Highest liquidity Possible: The FOREX market is the most liquid market in the world. That means that a trader can enter or exit the market whenever they want during almost any market condition minimal execution barriers or risk and no daily trading limit.
High leverage: It has a leverage ratio of up to 400 is normal when compared to a leverage ratio of 2 in the equity markets. Of course, this makes trading in the cash/spot forex market awkward a swell because it makes the risk of the down side loss much higher in the same way that it makes the profit potential on the upside much prettier.
Low cost per transaction: The retail transaction cost is actually less than 0.1% under the normal market conditions. At larger dealers, the spread could be less than 5 pips, and may expand a great deal in fast moving markets.
Always a good market: A trade in the FOREX market means selling or buying one currency against another. In essence, a bull market or a bear market for a currency is defined in terms of the outlook for value against other currencies. If the outlook is positive, you get a bull market where a trader profits by buying the currency against other currencies.
Inter-bank market: The foundation of the FOREX market consists of a global network of dealers that communicate and trade with their clients through electronic networks and telephones. There are no organized exchanges like in futures that are there to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets.
No one can corner the market: The FOREX market is so large and has so many participants that no single trader, even a central bank, can control the market price for an extended period of time.
It is not completely Unregulated: The FOREX market is seen as an unregulated market although the operations of major dealers like
commercial banks in money centers are regulated under the banking laws.
For the average person who is willing to get into forex trading, this market is just a better bet. With it being so wide open like it is, you have a higher gross potential than with any other trade type.
Wishing you success
KC Yap info@nicheinfosite.com
Copyright 2005 by KC Yap forex-trading-tricks.blogspot.com
About the Author
Want more tips, tricks and techniques in make a killing in the forex market? If so.. please check out my blog on forex trading and grab more FREE tricks to supercharge your forex trading profits NOW! |
| posted @ 5:06 PM |
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