Why most people are wrong about Forex

In Forex there are 2 types of persons: those who think this market is the perfect way to get rich quick, and those who think it’s impossible to make money on Forex. I believe both groups are completely wrong. The people that take Forex as a get rich quick scheme usually end up by losing their money really fast. These people tend to use too much margin and they usually don’t look to educate themselves or learn much about this market before they start trading. When they finally lose their money, they tend to become part of the opposite group of people: those who believe it’s impossible to make money on Forex. This second type of people are usually ex Forex traders that lost money and instead of taking the responsibilitfory their actions, they decide to blame their broker, their system or simply the entire market. Guess what, these people are wrong too. On Forex or any other market, traders need to work hard and practice before they trade. This is a challenging game and unless you work hard on it, you probably won’t succeed. When something goes wrong, you need to find out why weren’t you successfully and what can you do to improve your trading. Forex: To Trade or not to Trade… Forex is definitely one of the most challenging financial markets in the world. This market brings unique opportunities and risks, so you need to take some time to think on the pros and cons before you decide to start trading Forex. Forex Trading Advantages: * Forex brokers offer you as much as 200x leverage (and some brokers even offer you 400x leverage). With a 200x leverage you can basically trade up to $100000 with just $500 on your account. With this, Forex allows anyone to start trading with a small account and make good money at it. * Forex market is open 24 hours a day from Monday to Friday so anyone can trade Forex no matter where they’re located or when do they have some time to trade. * Most brokers offer free demo accounts which allow anyone to lear how to trade and to practice without risking any money. * Liquidity is another Pro on Forex. Since trading volumes are huge you can execute your order instantly during regular market conditions. * Since you can trade Forex anywhere and when you want to, if you’re successful on Forex you can live anywhere and make thousands a month. Not many business offer you such a flexibility. Forex Disadvantages: * The leverage is also a negative point on Forex. With such a huge leverage people can definitely double their money on the short term, but they can also lose their money fast. * Forex is definitely a high risk market. Most people that start trading Forex lose money. So you need to be aware that this is a difficult market to make money consistently. * Forex Scams: While there are Scams in any market, the Forex market tends to be particularly mined with Scams. Some brokers aren’t regulated and simply disappear with customers money and you can see hyped systems and programs just everywhere. It pays to be particularly careful when you decide to buy anything on Forex.