Why Forex Trading Is Bad
Why forex trading is bad, should not be the question here. The question should be, how can trading in the capital markets help you?
The reasons people forex trading is bad are many and varied. The following are some of the most popular:
– high trading fees;
– narrow spreads;
– lack of depth in market;
– fluctuating prices;
– multitude of brokers.
5 Ways to Get a Handle on Forex Trading – Before It Gets a Handle on You!
1. Learn about TA.
Technical analysis attempts to measure market sentiment and predict future market prices by looking at past price data. One of the hallmarks of a good technical analyst is an understanding of how investors actually think and react – while most people look for specific, measurable responses (like penny stock tips), most investors respond based on emotion, intuition or gut feeling (the same as you might when deciding whether or not to make that risky trade that could make you rich).
2. Find a way to practice with simulators.
While simulators are far from perfect, they provide a great way to practice your forex trading strategies. They allow you to test trading setups, analyze charts and learn about various technical indicators before actually putting them into actual live trades. You can even trade from your home office without having to deal with the carpal tunnel of one of those crowded markets.
3. Find a reliable trading system.
Many people buy trading systems without first learning how to evaluate the system. Before you base your entire trading career on some strange magic system or system that said it would be extraordinary and blow you away, you need to know exactly what that system does and how it does it. You also need to know why the system does what it does – a good investment system will have a reasonable explanation of how traders are affected by certain market conditions.
4. Select your indicators with care.
Indicators are one of the most important components of any successful forex trading strategy. There are many, many indicators available to the trader, but not all indicators work for everyone. You should pick the indicator or indicators that you think will most affect your trading style and stick with it.
5. Communicate with your broker.
You should do this whether you’re trading forex or penny stocks – but it is especially important when trading forex. Not only does your broker have valuable advice (and they’re not going to give it away for free), they can also help you keep track of any changes in the market that might affect your trading strategy.
Forex Is Filled With Scams
There has long been scams associated with this market as well as the stock market. The old adage is those that can not do, teach. Many people who are not traders try to make a mint by promoting the easy way to wealth.
While there are many legitimate trading systems out there, many of them have hidden costs that will cost you thousands or more in losses before you can see a profit (if ever). Nothing is for free. If they seem too good to be true, they are.
With forex, you do not need to purchase anything but an economical computer and the platform of your choice.
Highly Unpredictable Markets
I think it was around 2015 when the swiss franc crashed and took out many long standing banks. Many people who thought they were investing with a safe currency lost everything.
For the average investor, it is easier to invest in a proven company that has been around for many years. Those companies can be bought at reasonable prices and will not double or triple in price overnight.
It’s too difficult to predict what the market is going to do next, so it’s best to pick something you know best and stick with it. If you must dabble in trading, choose something stable like pound or euro.
Trying to stay Consistent
The hardest thing to do is staying consistent with trading wins and making money. Staying on the right side will be the hardest thing for most traders. If you win some trading, don’t take huge gains. When taking profits, do not cut your losses too much.
The market has a way of taking profits away from you very quickly. Don’t let yourself be one that is riding the highs and lows of the market and ends up losing everything.
Finding a good system with a 55% win rate and you will com out on top.
Forex trading for the most part is not bad, Just stay away from all the so called guru’s out there that promise riches. And trading system that say’s they have a 100% win rate. All these are lies. This market is very similar to the stock market, find a system that works for you on paper trading, then scale into live trading.
David Is A Sixteen Year Veteran In The Forex World. He Gives His Advice On What Works And What Does Not.