If you’re like most people in the foreign exchange market, you’ve invested countless hours, researching and crawling all depths of the internet. And for what? Are you currently a successful trader?
If so, then this post isn’t necessarily for you. Although, how do you know if you are a successful trader?
Ask yourself the following questions:
After answering these questions while being honest to yourself, I have found that many people get hit with the ‘cold hard truth’ and the fact remains; approximately 5% of forex traders are or will be successful.
That’s right, 95% of people who try their best in this brutal market are destined to fail. Losing money is never fun. The main reason many people claim this, among many other financial markets is just gambling is because they simply gave up. They didn’t invest enough time or effort. Aside from that, the biggest cause of people losing money in forex and other markets is due to lack of proper education.
Education doesn’t mean you need a degree from Harvard, Princeton or Yale. Like many things, education can be self-taught. It’s just that the majority of the information that is available to the general public is designed to lose you money. Another simple fact remains, when you’re losing money, someone else is making money.
When you go to the mall to shop, you buy a new pair of sunglasses, when you pay, you lose money, and the store gains it. It’s the same way with Forex. When you take a loss, other people are making money. Other traders, your brokerage and the banks that provide the latest pricing feed to your brokerage are all generating more income.
So what does this mean? It’s simple! It goes back to education. Large financial institutions (banks, brokerages, various firms) and even some governments staff quite a few fund managers.