You probably know the answer to the question, does anyone make money Forex trading? Just in case, the answer is YES. Lots of people make lots of money trading Forex. The problem is that a lot more lose money. In fact only about 5% of Forex traders make money trading.
Forex, for the average person, can be very profitable and has been growing rapidly for years. Forex currency trading is not very complicated although there appears to be an image that it is difficult. Actually, depending on your objectives, Forex trading offers a great alternative income option that provides an opportunity to make a little or a lot of money.
Okay, you’re probably thinking, why then do so many people not succeed at Forex trading? There are a number of reasons including the unreasonable expectation that you can get rich in a week or two. This is not going to happen, so forget it.
Research has shown another reason is, strangely enough, that traders are scared to 'pull the trigger' on placing a trade. Why? Usually lack of confidence in their trading decisions. Additionally, emotional trading and poor trade or money management add to the failure.
Another significant reason that can lead to making or losing money is the choice and use of Forex automated systems. Forex systems, whether manual or fully automated essentially monitor market conditions and determine if certain market characteristics occur. When these characteristics are met a 'signal' is produced. This may be a manually determined signal, an automated signal requiring a manual order, or a fully automated signal whereby the Forex system places and monitors the trade.
Successful traders recognize that a good Forex system combined with adequate training is critical to Forex trading success.
The Forex trading market has evolved from the difficult and extremely manual systems of many years ago until now with the growth of fully automated Forex trading systems that place and monitor orders. However, the greatest number of automated systems are still mainly manual signal systems. These signal systems tend to use similar mathematical formulas as the fully automated systems but only produce a signal for the trader to act on by manually placing the trade.
A Forex signal system can be very successful but is also where the fear of placing the trade can come in. Lack of confidence by the trader in their knowledge and the system they are using tends to result in placing orders when they should not and not placing orders when they should.
A rapidly growing area is the fully automated Forex trading systems or robots. These systems can trade independently of the trader. This 'hands off' trading is one reason why even experienced, successful traders are using these systems more often.
New and less experienced traders should consider using the fully automated system, at least initially, to help build confidence and their bank account. However, some new traders seem to think that to be a real trader they have to do everything themselves. Remember the 95% failure level? You may want to think again.
The fully automated Forex system uses very strict parameters to make trades. For a new trader it is difficult to keep all of these parameters in mind during the trading day. With the correct system and training, Forex traders should be financially successful.
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