Forex is not a quick rich project By cioreviewindia Team

Forex is not a quick rich project

cioreviewindia Team | Wednesday, 10 November 2021, 11:48 IST

  •  No Image

Forex is not a quick rich projectEveryone thinks that the trading profession will make them a millionaire but Forex is not a quick-rich project. Gaining success in Forex is very hard and it is very difficult for all traders to make money in Forex. Only a small percentage of the traders get money in Forex. Here, we are going to break your idea of Forex if you think it will make you quickly rich. If it cannot make you rich quickly, it certainly can make you poor quickly.

In this article, we are going to give you some honest advicebefore you think you are ready to get rocking and rollingin Forex. Without a proper understanding of the risk of your money and backup plan and support, your plan could fail; and you get the stuffing knocked out of you by failure. 

If you are poor/unemployed, don't trade in Forex

Remember the article when we said about pip movement? How can pip movement contribute to your money-making? Well, pip size can contribute to your money-making if you have a lot size which is quite large, for 10,000 dollars.

If you are poor and cannot  not pay your bills, Forex is not for you. Every dollar in Forex is liable to be lost  if you make one wrong decision. You should be able to afford to lose $10,000. Also, if you are living on your credit or debit card and do not have a source of income, do not trade in Forex. Invest the money elsewhere. It is very easy to lose money in Forex.

Be ready to lose money

Every trader in the Forex market, whether they are super big or very small like us, they have suffered loss at one trade or another. It is very hard and only 1% of the traders are successful in getting money from their trading. You might think where all the money is going since you can't make any profit. The answer is, money is always flying around and it is very hard to catch flying money. When you are in the Forex market, get ready to accept some losses. In your first trades, you will lose, and maybe 4 out of your 10 trades willyield a profit. If your profit from your 4 trade does not exceed the losses, leave Forex.

If you intend to trade, use the best ETF broker Singapore. Take your trades after analyzing the important variables of the market. Never think you can find the profitable trade signals without doing the data analysis. You need to develop a professional trading strategy and trade the market with strict discipline. Once you do that, you will be able to make living out of trading.

No risk, no gain

Without taking a risk, you cannot gain anything. It applies to Forex also. If you are not ready or cannot afford to take a risk, do not enter the Forex market. If you are experienced for many years, you will also lose money. If you want to make one thousanddollars in profit, you have to take a thousand-dollar risk.

Being new to this industry, you should be extremely careful about your risk management policy. No matter how good you are at trading, you should not be risking more than 2% of the account balance in any given trade. Once you start to trade the market with managed risk and follow a safe approach, you should see the change in your performance. Over the period, you will learn to make consistent profit and eventually consider trading as your business.

Summary

Do not become disheartened by trading Forex or by reading this article. It is for your good. If you are not ready, you cannot make money. You have to invest to make money. Do not make Forex trading your full-time job. Consider trading as your career only once you learn to take the trades with managed risk and when you have educated yourself properly to make this career viable.

CIO Viewpoint

Enabling Financial Inclusion on a Digital Platform

By Manoj Kumar Nambiar, Managing Director and Arvind Murarka, Head IT at Arohan Financial Services (P) Limited

Key Tech Trends for Capital Markets

By Dipak Rout, Head-IT, ArihantCapital Markets Ltd

CXO Insights

Staying Relevant with Digital

By Supriyo Dasgupta, IT Applications Head, Compass Group India

The T Minus 10 Of AI - Getting Started with the...

By Sushil Kumar Tripathi, AVP - Technology, Kellton Tech

Digitization in Insurance Industry

By Easwara Narayanan, COO, Future Generali India Insurance Company Limited

Facebook