Can you get rich by trading forex? Well, this is the question that all forex traders ask while trading forex or willing to do. Forex trading can make you rich if you are a next-to-perfect skilled forex trader. But for the average forex traders, it is next to impossible to get wealthy by trading. The road of forex trading can be very tricky and rocky for them.
Reasons of Not Getting Rich by Forex Trading?
For average and retail forex traders, forex market is not a place to get rich. There are several reasons which we should look into while thinking about that-
Forex Trading Is Not a Get-Rich-Quick Scheme
Traders who think that forex market is a place where he will be investing in forex and within a month, he will be wealthy, they need to quit this thought. Forex trading is a skill that forex traders need time to learn.
In this field, veteran traders can make good money, however, a full time job holder cannot get success overnight. Forex trading is not a piece of cake. You need time, energy, patience and knowledge to grab it.
Volatility refers to the price fluctuations of assets in the forex market. It measures the difference between the opening and closing prices over a certain period.
Investing in forex can be rocky for the traders as forex market can be quite volatile from time to time. The market gets affected by the news and events around the world. During news, market gets sloppy and unpredictable. So, it is quite possible that an average trader will lose his trading balance while trading forex.
Market manipulation refers to false inflation or deflation of the price of a security. The aim of market manipulation is to capitalize on favorable false market movements for personal interest. Big players like banks, corporations do the market manipulation for their own personal benefits.
As an average and retail trader in the forex market, you will face market manipulation while trading forex. So, it is quite natural that you face losses in trading.
While most traders think to be rich in forex trading, some traders think about its profitability.
Is Trading Forex Profitable?
Yes, trading forex is profitable if you follow proper trading strategies and risk management. There is no limit regarding how profitable forex trading is. There are some basic but crucial steps that a forex trader needs to follow to be profitable in forex trading.
Increase Your Forex Knowledge
Many traders blindly follow different strategies to be profitable in trading forex. Besides, some of them don’t read the market properly and just enter the market. The point to be noted that without having the proper knowledge about forex trading, you can never win the market.
Learning about forex is the fundamental aspect of the trader’s success. A trader needs to be curious and patience with his learning. Most traders start learning trades but lose patience or interest in the middle of the learning journey. Many of them don’t up-to-date themselves about the news around the world. So, if you are looking for success in forex trading, you need to be curious.
Control Your Emotion
Controlling your emotion while trading in forex is the one of the basic needs that a trader needs to have. It is quite natural that you will face the losses. Getting angry or depressed while losing money in forex trading is not acceptable. You have to keep your mind cool and look for the opportunity to recover the losses.
Many traders follow revenge trading when they lose money. They just want to get back what they have lost. The let their emotion take over and start trading without considering the market. In doing so, they lose more money. So, keeping emotion in check is important to be profitable.
Choose Your Solid Strategy
In forex trading, choosing your own solid strategy to be profitable is a crucial step to take. While most traders try to follow different strategies to follow, learned traders first find out their own strategy to follow. You need to find out what kind of trading strategy is appropriate for your trading balance.
To find out your own strategy, you can practice the strategies on a demo account. In this way, you will be able to find a solid strategy that works with your trading. Besides, you will be able to learn more about the forex.
Find a Good Broker
In forex trading, choosing a good broker is important because through them, you will be trading in forex. A good broker is crucial to choose because of the safety concerns about the deposit and withdrawal.
Besides, it is important to research broker’s offerings, including leverage, commissions, spreads etc. A trader needs to check if the broker is regulated or not. Besides a friendly customer service with proper information is needed.
Limited Technical Analysis Tools
Well, while reading the market through charts, it is important to use technical analysis tools. Although there are many technical tools in the market, but it is needed to keep its using to limited.
Using multiples of the same types of indicators are not mandatory to use. If you use two indicators of the same type, it will provide you confusing reading about the market and at the end, you will be the one losing money.
Reasonable Risk Management
Following proper risk management in forex trading has been the fundamental step from the beginning. A trader should take risks that he can afford to lose. Many traders take unreasonable risk against his trading balance out of his greed and at of the end, he blows his account with one or two trades.
So, when start trading in forex, a trader needs to go small with money and risk. He should be investing in forex the amount he can afford to lose. In this way, a trader can evaluate his trading plan, emotion.
Ending is here!
Well, it is quite proved that getting rich by trading forex is not possible. But a trader can definitely be profitable in trading if he maintains basic steps in trading. Many veteran traders have accepted forex for a living source. But those are average traders can take help from professional traders to take trades. SureShotFX provides free forex signals and free gold signals from their professional traders. You can try them on your demo account and learn trades from their analysis.