Millions of newcomers are taking their first steps in the Forex industry every year. If they can all be reached somehow and be asked the question, “Why have they joined the Forex market?” the possibility is, every one of them will tell the same story. They have chosen Forex trading for earning god fortune, to become rich. The same kind of hope will be reflected in their eyes as they are living the same dream: becoming a successful trader and becoming rich.
However, like all the sources of money, Forex is not a dreamland that one would just dig the earth and get a jar of gold. Among all the fantasies and dreams projected by the industry, there are some hard realities to face lurking in the corners of the Forex world.
Hard but True Facets of Forex
We will plead to everyone just not to get disheartened by all the inspiring aspects of currency trading. They have not been narrated here to discourage or dent anyone’s enthusiasm or hope. The only objective of this article is to expose all the hidden obstacles you may encounter in the currency exchange industry. So that no one falls victim to them and loses their capital.
1. Losing is the Second Name of Trading
Those who are already questioning this point, referring to all the successful traders who have made millions of dollars already, must know even successful traders lose money. Where the profit comes from is the subtraction value of the lost amount from the earned amount. If the lost amount is bigger than the earned amount, it makes a loss, and the vice versa condition results in a profit. Mastering the art of trading is more like learning to trade bonds. You need to find the perfect tone and trade in an independent way.
The ratio of the market participants and winners and losers may astound you. About 90% of people lose all their capital while trading currencies. Several factors like lack of discipline, training, planning, not having an additional edge, and broken money management are marked as the primary reasons behind such a massive loss.
If longing for perfection and fearing losing money is someone’s intrinsic weakness, they should reconsider their decision to join this platform.
2. Trading Requires Support
No matter how heartless it sounds, but trading is not for people who are drowned to their shoulders in debt or lack jobs and money. An ideal market joiner should have at least $10,000 in their opening account. Not only that, but he should also not expect anything to actually at the very beginning of his journey as a trader. Conversely, he should establish a mindset to lose all of his money to get rid of additional fear thrown into the marketplace.
All kinds of share markets are about risking money on the movements of different market trends. Opportunities come with the same package of risk. The bigger the opportunity, the more devastating the risk it projects. By implementing a proper money-management system, one can lower the overall risk amount. However, there is no definitive way to avert the risks completely. Any trend can take a reverse at any time and subject a trader to a massive loss.
3. Not a Quick-Rich Menu
From learning to trade to getting good at it takes tremendous time. Without being diligent and putting in a sufficient amount of time, none can earn a notable amount of money. So, all those who are reading this article and ideate the forex industry as a quick money-making instrument, just get rid of the idea.
Trading will surely test everyone’s guts and tenacity before allowing them to think of making a profit. Hard work and practice have no equal in terms of making yourself into a successful in any profession. Forex is not an exception to this rule.
So, earning money will take as much time as it needs to in the currency exchange industry. Taking any kind of shortcut will just prolong the procedure.