Hidden truth about Forex trading, make smarter choices:
No I am not about to expose some Forex scammer, sorry if that is what you expected to read about, keep reading though, I promise you won’t regret it, the hidden truth is what most traders don’t tell you out there, so I have decided to tell it as it is. Not so long ago I wrote a post titled Forex trading lies and also the FAQ’s.
What we know for sure:
- We know that currencies appreciate and depreciate in value.
- We know that there is no recession in Forex trading because when one currency pair fall the other one rise.
- We know that we buy the currencies which are going up and we sell those currencies which are going down.
- We know that economy of a country play an important role in falling and rising of its currency.
That is what we know for sure and it is what it is, it won’t change.
What we don’t know for sure:
- We don’t know the exact amount or percentage of returns that we can make daily/ weekly or monthly.
- We don’t know if what we made the previous day/week or month, will be the same as current month or next.
When you are new to trading, please note that it won’t just happen, being consistently profitable is something that takes time, skill and mostly experience, the more experienced you are, the more you are likely to have a sustainable trading account. The most successful and profitable traders know this and they have seen the ups and downs in their business, yes I agree that Forex trading is good money but also terrible loss to most, it is exciting and also challenging and it can also yield higher returns than most investments. Be warned though, what you see all over social media is not reality, reality is, you need to be financially matured to be able to handle this exciting world of currencies, being modest and level-headed also helps a lot, since you will not be misled or even be enticed by material things.
Can I take a loan in order to start with my Forex business?
A big NO, that will add unnecessary pressure in your trading as I am revealing the truth that we don’t know for sure if the amount or percentage made per month will be the same always, all investments do not offer guaranteed returns, it could be more than previous month or less than previous month, so NO, it is not good for a beginner to start trading with borrowed money since you are not even sure of your own emotions yet and if you can be consistent, that alone is bad for you, having to think about the debt hanging over your head is absolutely not a good idea, you do not want to think about repayments every time you place a trade, you will end up forcing trades even when there are no real opportunities to trade profitably, you will become a desperate trade. So let’s agree, NO loans for a beginner.
Treat your trading account as you would treat any other business, business people know that when starting out a business they have to give it time to grow before they can even think about making a living out of it, they strive to develop, grow and multiply , the same thing applies to your trading account/investment, allow it to grow, nurture it, strive for consistency, trade profits on profits (compound), give it time to grow before you can think of making an income out of it, a trading account that is cashed out after few weeks of existence cannot really be expected to perform well and grow, people who are making a living out of this business are those who use the power of compounding and who can exercise patience, this is just an advice, trade at least for few months before you can think about cashing out (unless you cannot wait), failing to do so might leave you a little disappointed when you do not reach the percentage you expected to reach especially when you have a loan to repay, it is not impossible to make a living out of trading, but it does not just happen, experience is key and there are some proper procedures (compound) to be followed in order to see it happening to you as well.
What should be your priority as beginner live trader?
To get it right should be your priority, making huge returns should be secondary, it will come as you grow, you could be trading 3 times a week and still make more money than someone who trades 5 days a week making 10 trades each day, success in trading is not in quantity but in quality, trading less does not mean making fewer profits and trading more does not guarantee any success. I know for sure that I feel more relaxed trading the reason (economic news) and staying tuned to what the market does, whatever trading strategy that you choose to use has to be in line with your personality traits, we all have different trading personalities and needs, you do not need to use all the strategies that are presented to you out there, stick to one strategy before you can jump to another, switching (jumping from one strategy to another without giving it enough time to see if it works) is what many traders do mostly and it only leads to frustrations and losses after losses, remember that everyone has a “better” strategy than someone else, give yours a chance before switching, otherwise you might just spend your entire life testing strategies and mastering none.
I want to trade Forex as a hobby:
Please do not, I suggest you find another hobby since this might be a very expensive one, people who think Forex trading can be done as a hobby are easily turned into gamblers and they become Forex addicts. Forex market is not a place to “hang out” when you are bored. Thank you for stopping by and reading my post, please do come around again I promise to be better next time, kindly share the post with your friends and social media groups.