So you've heard there's money to be made trading forex and you want your piece of the pie? Fair enough – we all do, but here's the harsh truth about trading Forex.
90% of People Who Trade Foreign Currency Lose Money
Has that put a little bit of a dampner on your forex trading aspirations? There's a whole industry of people out there telling you that trading forex is an instant solution to your money problems and that you can be rolling in cash tomorrow. That's not reality – that is what's called 'selling a dream'. Let me re-iterate that statistic for you – 9 out of 10 people fail trading foreign currency.
Of course, that does not mean you are not going to be the 1 in ten who does not fail. In fact the fact that you are reading this article is a fantastic sign – it means you have not just handed your cash over to some hotshot with a good salespitch with the instruction to turn it into more money. You are doing research, and that's important.
There's not many jobs or business opportunities where you can realistically just jump in and start making money – you need to know how things work and why things work. In forex that means not just knowing the basics, but actually taking a little time to watch the market and get a feel for how things run. The very best way of doing this is with some forex software that simplifies and analyzes the market for you, combined with a test account which means you are trading – but not actual money.
Test accounts are a two edged sword. They can save you from a big loss while you are learning, but if your trades go the right way you will be kicking yourself for not making them with actual money and seeing actual profits. To me, the safety of not making big stupid losses is worth the potential lost gains should you get lucky and get it right.
Test accounts are also a great way of testing automated solutions such as the very popular Forex AutoPilot and Forex Killer Products. If you are going to trust a machine with your money – it's nice to see some positive results for a few days first to know that everything runs as it should.
