Forex Trading : Not Money Making Machine
Its the biggest misconception every newbie trader has in his mind.,Forex as money making machine. But its not.
Its just the exchange of money . When some trader looses his money , at the same time some another trader makes money . No one can have profit all the time . You will get many automated system claiming to get 200% profit but its not possible . If that were the case , the seller himself will double & triple his money, why he will sell ?
The reason why most of new traders quit trading is , initially they see money everywhere (in forex). As no one displays there losses as they showcase the profit. So he thinks everyone is making money,starts trading with excitation and suffer the loss,as he dont know much about trading ,just buy when signal is given and close. Slowly-Slowly cycle of profit loss starts. Its hard to get profit initially but small profit also makes him happy like he earned millions.And then one big loss takes him away from trading.So its much more important that you learn before actually starting trading .
Also some thinks that brokers are there to make sure that you loose everytime so that they can make money . But this is also not true . Brokers get commission on every trade you open which is called as spread.Its irrespective of your loss or profit.
In short forex is market where you can make billions or go bankrupt . It depend on how you trade and your skills .
Its just the exchange of money . When some trader looses his money , at the same time some another trader makes money . No one can have profit all the time . You will get many automated system claiming to get 200% profit but its not possible . If that were the case , the seller himself will double & triple his money, why he will sell ?
The reason why most of new traders quit trading is , initially they see money everywhere (in forex). As no one displays there losses as they showcase the profit. So he thinks everyone is making money,starts trading with excitation and suffer the loss,as he dont know much about trading ,just buy when signal is given and close. Slowly-Slowly cycle of profit loss starts. Its hard to get profit initially but small profit also makes him happy like he earned millions.And then one big loss takes him away from trading.So its much more important that you learn before actually starting trading .
Also some thinks that brokers are there to make sure that you loose everytime so that they can make money . But this is also not true . Brokers get commission on every trade you open which is called as spread.Its irrespective of your loss or profit.
In short forex is market where you can make billions or go bankrupt . It depend on how you trade and your skills .
