When beginners study information about the foreign exchange market, they come across a huge number of flashy slogans and posters. They promise them that it is quite easy to make money in the Forex market.
It's not that clear-cut.
There are also articles online about how some traders have developed their trading skills to the point where trading currencies has become their main income. They left the office and work only for themselves. If you look closely, such revelations are rare. And if they are replicated, it's a repetition of the same stories.
But on the Forex forums there are a lot of questions about if there is a chance to make profit trading currencies. While a minority of traders write opuses about how they became millionaires, most of them bombard communities in the networks with questions about whether it is possible to make money there and scour the Internet in the hope for a sensible forex.com review of the brokers.
And finally, there are groups of people who sincerely believe that there is absolutely no chance of making a profit in the Forex market.
Who is right? Everyone is right. Because to be profitable at trading you need diligence, good knowledge of mathematics, patience, ability to control your emotions. Most people who come to Forex do not possess all these qualities, that's why they go broke.
Forex is profitable, but not for everyone. Traders are happy to record online courses about how they became successful. If you check the information, everything matches up. They really have millions of dollars in their accounts. They are silent about one thing: how much time it took them. And at the cost of what financial losses they have learned to work in the black, for people who are used to search and analyze information from reliable sources https://forex-up.com/ about forex.
Many articles and textbooks contain data on how many traders are not successful in the Forex market. Usually figures of 90-95% are mentioned.
If you start breaking traders down into subgroups, the numbers will change. Finance magnates published data from a survey of 30 brokers in the Forex market. They provided researchers with the data on how many traders are working in the plus or loss. It turned out that 76% of the traders lose rather than earn money.
Who are they, the lucky 24%? Professionals, representatives of investment funds. They have an economic education and work experience in banking or finance, and sometimes they have additional education, too.
But not only super-professionals are successful traders. Among them there are retail traders who have spent a lot of time and effort to become successful traders in the Forex market. Almost all of them sell their trading strategies and trading signals online. Almost inevitably, they collaborate with websites that broadcast their decisions to open and close positions in real time.
Such retailers have something in common in their description.
- They have been working in the Forex market for many years.
- Use risk and profit management systems.
- Have special trading and working skills and characteristics.
The study of a group of successful retail traders allows scholars to formulate what the success factors are in the foreign exchange industry.
How to become a successful retailer
Numerous studies of the trading elite indicate that anyone can become successful in the Forex market. The ability to trade on the plus side does not depend on age, psychological characteristics or the amount of working capital.
But some people have the prerequisites and skills to run successful sessions, while others need to work hard on themselves. One has to study the psychology of traders, to master risk management systems, to study the principles and mechanisms of the foreign exchange market.
Is it possible to learn all the skills in a couple of days or months? More likely no than yes. The exceptions may be people who have worked in related industries and know the specifics of the stock market well. There are simply talented beginners who quickly grasp the basic ideas and manage to apply them almost error-free. But these are exceptions to the rules.
It takes the average trader a long time to become a professional in order to trade without losses and make regular profits.
What to study
Learning time alone means nothing if the wrong topics are chosen. To be successful, you need a perfect understanding of the subject matter of various trading strategies. It is necessary to get a general idea of all possible strategies, at least the most popular ones. And then you need to choose several different techniques that you need to thoroughly master.
There are lucky people who find one working strategy and use it for many years. Such an option is also possible. But it usually doesn't hurt to realize that there are options that are better suited for other trading situations than those on which the main profit is made.
Connoisseurs of short-term day trading would do well to be aware of trend trading and options based on fundamental indicators. The opposite is also true: sometimes the market is conducive to making some profits on short trades. It is necessary to know at least the basics of scalper trading in order not to miss such moments.
How to choose a broker - important points
The basic rules of choosing a broker will vary depending on what indicators are most important for a particular trader, but, in general, the following should be considered:
Reliability of the company This
criterion includes an assessment of the following parameters: licensing, term of operation, regulation of conflicts, as well as risk insurance.
Initial deposit amount and types of accounts Traders
can choose the account that suits them best (Demo account, cent account, micro/mini account, PRO), for example, a demo account to practice and get the basic Forex trading skills, then they can switch to a real account with a small deposit amount or choose Pro account for professional trading.
Leverage provided to the trader
Margin trading allows a trader to make transactions with currency in the Forex market, the amount of which is more than the size of his account and allows him to earn more.
Variety of tools for Forex trading Today
you have a lot of unique and trading tools for Forex trading and account options as https://forex-up.com/broker-reviews/exness-review/exness-raw-spread-account-review/. The wider the choice of instruments, the more diverse the earning possibilities for the trader.
Choose a broker with a low spread The spread
is the difference between the selling price and the buying price. There are fixed and floating spreads. The lower the spread, the more profit the trader gets.
The possibility of withdrawing money from the trading account It is necessary
to pay attention to the methods of deposit and withdrawal. Some brokerage companies may limit the possibility of withdrawal to the card. It will be worthwhile to find out from your manager in what way it is easier to withdraw funds and how many hours it will take.
Wide range of trading platforms for financial trading in forex There you
should pay attention to the convenience for users, the speed of processing requests, the availability of analytics and the ability to use indicators for technical analysis.
It is desirable that the broker has a multilingual support service. The ability to
quickly contact a specialist who can help resolve difficulties.
The right decision of the question - "What broker to choose for forex trading?" depends on how successful the work of the trader will be and how much money he will be able to earn.