Currency trading online has opened forex markets to more traders than ever before and I read a lot about how it has made trading easier - Rubbish! It's no easier to make money and probably harder than ever before.
If you don't know why read on and find out.
First, let's start with a simple observation:
The ratio of winners to losers remains the same as it did 50 years ago and the percentage of novice traders losing is higher than ever before.
The fact is that currency trading is easier to do - minimums are lower and on the face of it looks easier so more people who are unprepared try it and get hammered.
Let's look at a trading currency online myth.
Myth - The Amount of Information Makes It Easier
There is certainly a vast amount of free information that can help you learn to trade but this was always available for a minor cost by going to your local bookstore.
There are numerous courses and currency trading systems sold by vendors with ridiculous claims of easy profits, temping novice traders to open trading accounts and the vast majority are junk.
There is a lot more news available to, but since when did currency traders make money trading news stories?
The fact that news is available online means that everyone has it in seconds and it's discounted instantly. Furthermore, it has increased volatility and dealing with volatility, is the really hard part of forex trading.
On the face of it, it would seem the internet has made trading easier (and it has in terms of trading and opening an account) but in terms of making money it has not.
More novice traders are lured into trading than ever before by the promise of easy riches and promptly lose all their money.
Accept this fact - trading is hard
The internet has made no difference in terms of increasing your chances of success; it has only made opening an account easier.
If you want to engage in currency online trading then ask yourself this simple question:
Why should I be a winner when 95% of novice traders lose?
If you are like most novice traders who have bought a $100 e-book or currency trading system from a vendor and think that will help you - the bad news is you are going to lose.
If you intend to trade using the vast amount of online news (you've guessed it already) you're going to lose.
The odds are against you!
The odds of novice traders making money in forex trading are slim and most are deluded in terms of what it takes to win.
If you want to win you need a forex trading strategy that gives you an edge - if you don't know what your edge is in terms of how you can beat the odds you don't have one!
What you have to content with is huge volatility in all currencies. Spotting trends is not that hard holding them or entering them with wild price swings is the hard part and to a degree the internet has helped increase it.
Unlike many article writers who have never traded and write about how easy trading is, I have been a trader for 27 years and if you asked me:
Would I rather trade before the internet or after? - The answer would from profit point of view be a resounding yes.
If you want to become a successful forex trader, then be aware of the challenges that you face in terms of achieving success in currency trading online, or get ready to lose your money.
If you don't know why read on and find out.
First, let's start with a simple observation:
The ratio of winners to losers remains the same as it did 50 years ago and the percentage of novice traders losing is higher than ever before.
The fact is that currency trading is easier to do - minimums are lower and on the face of it looks easier so more people who are unprepared try it and get hammered.
Let's look at a trading currency online myth.
Myth - The Amount of Information Makes It Easier
There is certainly a vast amount of free information that can help you learn to trade but this was always available for a minor cost by going to your local bookstore.
There are numerous courses and currency trading systems sold by vendors with ridiculous claims of easy profits, temping novice traders to open trading accounts and the vast majority are junk.
There is a lot more news available to, but since when did currency traders make money trading news stories?
The fact that news is available online means that everyone has it in seconds and it's discounted instantly. Furthermore, it has increased volatility and dealing with volatility, is the really hard part of forex trading.
On the face of it, it would seem the internet has made trading easier (and it has in terms of trading and opening an account) but in terms of making money it has not.
More novice traders are lured into trading than ever before by the promise of easy riches and promptly lose all their money.
Accept this fact - trading is hard
The internet has made no difference in terms of increasing your chances of success; it has only made opening an account easier.
If you want to engage in currency online trading then ask yourself this simple question:
Why should I be a winner when 95% of novice traders lose?
If you are like most novice traders who have bought a $100 e-book or currency trading system from a vendor and think that will help you - the bad news is you are going to lose.
If you intend to trade using the vast amount of online news (you've guessed it already) you're going to lose.
The odds are against you!
The odds of novice traders making money in forex trading are slim and most are deluded in terms of what it takes to win.
If you want to win you need a forex trading strategy that gives you an edge - if you don't know what your edge is in terms of how you can beat the odds you don't have one!
What you have to content with is huge volatility in all currencies. Spotting trends is not that hard holding them or entering them with wild price swings is the hard part and to a degree the internet has helped increase it.
Unlike many article writers who have never traded and write about how easy trading is, I have been a trader for 27 years and if you asked me:
Would I rather trade before the internet or after? - The answer would from profit point of view be a resounding yes.
If you want to become a successful forex trader, then be aware of the challenges that you face in terms of achieving success in currency trading online, or get ready to lose your money.
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