The reason I am telling you this is not because forex trading itself is a scam. In fact, I make a decent income from it everyday …

For the past few years, forex trading has become one of the hottest money making opportunities available all thanks to the advertisements that you see on the newspaper and online ads.

The promise of making money fast and eventually quit your day job is what makes people flooding into the forex market every single day. Interestingly not many people know that 90% of those entering the arena of forex trading lost all their invested money and left feeling scammed.

The reason I am telling you this is not because forex trading itself is a scam. In fact, I make a decent income from it everyday but what actually happens behind the scene is the constant hard work that I have put in to eventually achieve what I am today.

Here are the truths that you need to know before you consider entering the field of forex trading.

1. Forex Education

This is one of the important factor that you need to know. In order to become a successful trader, you constantly need to upgrade your skill to better refine your trading strategy. When you are selecting courses or mentors to learn from, you definitely need to stay away from those that promise you easy money or make million dollars within a short time. Most people thought that they can start trading immediately without learning any skill.

2. Practice

You need a minimum of six months practice in a DEMO account before you actually trade with your real money. Most new traders thought that they can get started within a week and they will be able to make money on the fly. The reason why you need to practice is to fine tune your trading plan until it is able to give you a high winning percentage of about 60 to 70%. Do note that there is no way you can trade with 100% wins as losses are part and parcel of trading you have to accept.

3. Start-up Capital

You may have come across some advertisement telling you that you can start trading with as little as $25. No doubt you will be able to open an account with $25 but you will not be able to trade for long with that amount of money. A decent start-up capital will be about $5,000. (Never use money that you can’t afford to lose in trading. This will make you emotional when trading and leads to losses)

4. No Robot!

You may have come across some advertisements that talk about how their robots can help you make thousands in trading every month. If you do a further search online for each and individual robots, you will come across people who lost money trading these robots.

If you step back and think more rationally, if these people can come up with such a reliable robot, do you think that they will sell you for just $100+? You are the only person who is responsible for your own money; therefore you have to know when to trade and when not to trade.

The above are some points that I want to share with you so that you will not become the 90% of new traders who left miserably. If you are serious about trading, you must treat it like a business that requires your hard work to succeed.

About the author

Kelvin Lee, a full time forex trader who creates a blog that provides forex tips and a guide on forex indicators to help new trader set up their own profitable trading strategy.

Popularity: 19% [?]