Is Forex Trading Profitable to the common Man?
This is one of the questions you will ask when considering Forex trading as an investment option. The answer to the question of whether or not Forex trading is profitable would be a Yes and No.
If you are an amateur, guess what, it will be a No. It won’t be profitable. In fact, you can lose a lot of money because most amateurs lose their trading capital, then replenish their trading account only to lose the entire amount a second and third time. The cycle might continue for as long as you feel the urge to revenge in order to get back what you have lost.
So is Forex trading profitable? Is Forex trading worth it? How much money can you make trading Forex? Or does anyone make money trading Forex? All those questions basically mean the same thing.
Now, the truth is that if an amateur works hard and gains enough experience in the Forex market, then the answer will change to a Yes.
First off, every successful trader started somewhere. They had to lose money at some point.
Therefore it’s not a surprise that those who are asking this question have perhaps lost money or are considering to venture into Forex trading.
Whatever the case, asking the question of ”Is Forex Trading Profitable?” is a sign that you are genuinely interested in knowing whether you can really make money trading Forex.
Is Forex trading Profitable?
A big number of those who attempt to make money off the markets will lose money. This percentage is currently estimated at 95%. So we are assuming that the 5% consists of financial institutions (a majority) and a small minority being retail traders like me and you.
When you lose money in the beginning of trading, you should never quit if you truly desire to live the life of a trader. It’s the kind of life that everyone would enjoy.
Once you have a trading plan and a routine to follow and decide that you want to become a full time trader, the rest will be easy for you. You set your trades any time of the day and leave them alone. You can go play golf or hang out with friends. That’s pretty much how a full time trader lives.
You don’t have to worry about your losing trades if you are trading like a risk manager.
Because all of us fail at some point when we are starting this journey, the most important thing to consider is to ensure that your winning trades are always covering your losers as highlighted in the link to an article which I gave you above.
If you follow my advice on risk reward ratios, your losers won’t hurt your emotions and well being. You will not be bothered with your trades once you set them. You won’t feel the need to keep checking what is happening to your trades in the chart. All you will worry about is how to utilize your free time at home.
As a Forex trader who wants profits, you must go through lots of obstacles to make it. Unless you are lucky to get proper training which shortens the learning curve, you will make a lot of costly mistakes.
You will have to master the following areas
(b)Learning how to identify potentially profitable opportunities and how to execute trades successfully. This is the hardest part.
(c)Learning how to separate your emotions from trading. If you can learn this, you have passed the test and the rest becomes a walk in the park.
Of choosing good Forex brokers
Even if you have mastered and gained meaningful experience as a trader, if you use a rogue broker, you will burn.
Search for a broker that does not trade against you. Also, there is no broker who is 100% good. So look for the sweet spot. I trade with this broker because at least he doesn’t trade against me and also processes withdrawal requests in 5 minutes. However, I have also encountered a few complaints here and there about this broker. But generally, their ratings are good. They have tight/reliable spreads which makes execution fun.
Choose whether you want to use a signal service/software or trade on your own
I rarely come across good trading software. I bet you can search for a good and reliable software all your life. So I recommend that you should at least invest in your training so you can learn how to fish.
You can also identify a reliable Forex signal service to use. I offer them here, just in case you are looking for one. We can trade together because what I send you is what I trade.
How to deal with emotional trading in Forex
Human emotions are the biggest impediment to successful trading. Even a very experienced trader with a track record will sometime find themselves trading with emotions.
That means there is no realistic way to completely eliminate emotions from your trading. So, what is the secret?
Well, the secret is in the risk reward strategy where you don’t risk too much and at the same time let your winners make you the most money. If you stick to this lesson, your emotions won’t get the better part of you just because you lost one or two trades.
Is Forex trading profitable? You now have the answer. You can choose what to do if you want to be successful. Or you can lose money and give up. Even then, you should always invest in proper training first to avoid the losses.