Friday, October 28, 2011

Is forex trading profitable?

Really the behavior of forex market is very hard to predict and very risky. Also forex can make you a millionaire or a beggar in a few minutes. So it is not that easy to be successful in forex trading. Only 5% of traders are successful and the majority is losers. We must try hard to enter to that 5%.  In forex trading someone is winning means someone is loosing in somewhere in the world. The banks and big investors are the big players in this game and we should try to do what they do and should not do against them as we are ants if they are big elephants. Following things are the most important rules in forex as I have seen and If you are a beginner, you should always remember these things.

1  Knowing that you cant always win

I have seen in lot of websites that traders providing their trading performance sheets without any loosing trades. Probably they are fake and anyone cant trade for a long time without loosing even a single trade except central banks. Very experienced professional traders also sometimes loose two, three trades in a row. So you must understand that loosing is a part of this game and only thing that we can do is reducing the number of loosing trades and also the amount of loosing.

2  Strong determination to be successful

Determination is very important not only in forex but also in any kind of work we do. At the loosing time you might end up with loosing all the positions you had at that time in different pairs. This is normal because there are correlations among most of the pairs. So after a series of loosing trades it is very hard to make our mind and for many beginners it is the end of their forex trading. If you are like that, don’t try to trade in forex anymore because you have to understand that this is the nature of forex and also you have to learn a lot of things from loosing trades. Biggest looser become the biggest winner. If you want to be a successful trader, reading books, articles, being alert for news and global economy is very important. Nothing can be achieved if you don’t spend some amount of time to learn that.

3  Trading discipline

This plays a major role in forex trading. After a loosing trade, lot of beginners try to recover it as soon as possible. This is the worst case and when you enter to trades at that  time probably you cant recover and you loose further more. So controlling our emotions is very important specially after loosing trades. Also trading very big lot sizes to become rich quickly is seen often among beginners. This is greed and should try to avoid as much as you can. Always don’t risk more than 5% of your trading capital and for beginners it is very safe to trade minimum lot size until a good experience is gained.


  1. I would say that Forex Trading is very profitable and best for them who want to earn expected profit in very short time. You can just start Forex Trade with good capital and some basic knowledge about it.

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  2. Your information is very nice. Its very helpful for me because daily I invest my money in trading and i get good tips and good knowledge about Currency updates from your blog. Thanks for creating this blog or post.

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