Almost everywhere you look online you will find bold banner Ads talking about how much money people have made ‘almost’ overnight by trading in the Forex markets.
Certain Forex trading websites claim that you can make hundreds to thousands of dollars within a few weeks of trading, and they show daring testimonials of real people who have done just that.
However, when you take a closer look at their disclaimer page and especially their earnings disclaimers then you will see that it is not as easy to make money online via currency trading as they make it out to be.
Yes, it is true. You could probably lose all your savings if you blindly follow these Forex trading ads online. And, you could lose almost every single Rupee you have earned your entire life if you spend time trading like a fool online on any of these Forex trading websites.
What makes this market so dangerous and highly risky is the fact that currency trading is mostly about speculation and predictions backed by absolutely no regulations. This causes market conditions that are quite unstable, unsettled and purely for the big risk takers.
But, can you make money by trading in Forex? – Of course you can! It does involve a great deal of risk for the person with little or no knowledge of the markets but it can make you loads of money if you are a seasoned trader with a lot of knowledge in Forex trading put into practice at the right time.
Bottom line, invest or enter the currency trading market only when you have enough knowledge on the existing market conditions and when you have some money to play around with.
5 Things You Must Not To Do In Forex
There have been a lot of people who have been earning a decent amount of money in Forex. For people who generally claim that they are interested to earn a lot of money, they should be shown the path of Forex. The main reason that Forex have not yet been deemed with the volatility of shares is due to the fact that shares reflect the nature and mode of operation of the company, and the Forex represents the currency of that Country. The two features are extremely different and cannot be even connected in the slightest. There are a lot of cardinal rules that you should abide by so that you can do very well for yourself in the Forex market.
1 tip- The first thing that you should get rid of is emotion. The main reason as to why people suffer a loss in business is that emotion becomes involved in that business. If you go and get emotionally involved with the Forex, then irrational decisions would be taken on your behalf, and you could end up losing a lot of money in this process.Do not put all the eggs in one basket. When you do want to invest a lot of money in a currency that you know would be doing very well in the market, make sure to have a backup plan ready just so in case your decision turns out to be bad. When people do realize that they have made a mistake, it has already been a while and they cannot revert back the decision that they have taken. Hence, it would be a very wise decision for you to not over trade and spend all the money in a single investment that you find lucrative.
2 tip- Try and separate the fiction from the fact. The primary fact that you have had a lot of training in any virtual platform with virtual currency is not sign of your ability to do very well in the Forex market. There have been a lot of knowledgeable people who have gone home empty handed as they failed to make the difference with the virtual money and the real one. When you do come to your senses about the amount of money spent on Forex, you would be able to gauge if they are worth the risk or not.Always ensure that you trade yourself. The use of a broker can be a useful thing to do, but in hindsight, you would be paying your broker a lot of money to make investments on your behalf, something which you could have done yourself.
3 tip- Always ensure that you do not trade money and currency when you do not have any specific information. If the news that you have heard and upon which you may have taken a decision to go for this currency turns out to be false, then you would be in a huge mess and the amountof money which you had earned may have just gone away.