Saturday, January 19, 2008
Does Forex Make Money?
Does Forex Make Money? With a daily turnover estimated at around $1.8 trillion the answer to the question Does the Forex make money? is pretty obvious. The bigger question is: For whom? With the opportunity for anybody and everybody with a computer and an internet connection to participate in the Forex to make money in recent years, thousands of individuals have had some exposure to the challenges of Forex trading. Is The Forex A Fool s Game? According to some estimates, the vast majority, perhaps as high as 95%, lose money. Is it a fool s game, just an elusive dream to trade the Forex to make money to try and achieve financial security? In view of the high failure rate, it is prudent for anyone who is contemplating entering Forex trading to do their homework first. While the majority fail to make consistent profits from the Forex, a minority do, and some of them make huge profits from the Forex. The Realistic Mindset What is the key? A realistic mindset when approaching the Forex, a commitment to learn and get a proper education, and then, application of the knowledge learned in a disciplined way backed up by perseverance! For an individual who has already had experience trading stocks, or futures, the learning curve may only involve a few months when switching to the foreign exchange market. For the complete novice the learning period will probably run into years, anywhere from 1 to 3 years according to some estimates. During this time the novice will have to first get acquainted with the workings of the Forex, learning the terminology, and working with a demo account on a trading platform supplied by an online broker. Months will need to be spent sitting in front of a computer screen studying candlestick charts, getting acquainted with specific patterns, learning to recognize high probability setups. There is no shortcut for this part of the educational process if you want the Forex to make money for you. The Most Critical Factor Then comes the most critical part of all: developing the mental discipline and emotional control necessary for safe trading. The Forex can be a minefield for anyone who is not in control of their emotions. For a person who has a gambling instinct, the Forex will suck their account dry in a very short time. The Forex is not a game of chance. Successful trades are the product of careful market analysis, an understanding of how the market moves acquired from months and years of experience, and a strict control of equity management. Even with all that input, the successful trader will still regularly lose trades. As long as there are a greater number of trades that are successful, the Forex will make money for you. Make An Informed Decision If all this sounds overwhelming and a little foreboding, you are getting the picture of what is involved once you start down the road as a Forex trader. On the other hand, this is a job that can be done from home, with as many hours committed to it as you wish to allow, and in the long term, once the skills have been acquired, the Forex can provide a substantial form of income. Will the Forex make money for you? That is an individual question and will depend on all the variables discussed above. Do your homework, check out educational materials, examine your current workload and circumstances, be honest about your personality style, and then make an informed decision. To learn how to preserve your mental and emotional resources in addition to your account equity click here: vitalstop.com/Forex/Advisor/forex-day-trading-mental-equity.htm For a free pivot point calculator, Fibonacci calculator and the best free economic calendars click here: vitalstop.com/Forex/tools.html If you are looking for a comprehensive Forex education with mentoring from professionals check this: vitalstop.com/Forex/forex-education.html