Good Morning Friends, I am starting this thread in a hope to bring some Honest and Experienced Forex Traders to shed some light on Forex Trading. So, basically its about Forex Trading and not Forex Teaching or Selling Forex products. It's just an honest effort to bring some awareness about Forex and to save a lot of people from wasting thousands of dollars, time and energy on something unrealistic. I also know that these kind of threads are mostly ignored because of the fact that this kind of discussion is not appreciated by many (day dreamers, gamblers, Forex teachers and Marketers). Please participate, Thanks.
Is Forex Real, Is it Profitable?.................YES, IT'S REAL and it's profitable.
But then Why do 90% traders fail?
BECAUSE, Forex is not EASY and to be SUCCESSFUL, you have to go through few stages successfully.
You can evaluate your readiness by doing a checklist below and then ask yourself if you are really ready to go Live?
Stage1: Learn Forex, Practice Forex, Find a strategy & Follow it with discipline
Just to understand it better, let's assume we have 100 new traders who wants to try Forex for various reasons. Now the first three parts; Learning, Practicing and Finding a profitable (& suitable) strategy for you can be easy as lots of forex resources available (online, forums, books & mentors) BUT is still very time consuming tasks. And among those 100 traders, there are people from different backgrounds, some work full time, some study full time, some have a running business, etc and it's really hard to spare the time needed for these tasks. If they pass these tasks, then the hardest part is very difficult to pass; that is, to Follow your strategy with Discipline. How many of the 100 traders, do you think, will finally pass the First stage successfully? For educational purpose only, let's assume (50% success rate, So 50 out of 100 are out)
Stage2: Enough Funds to support your Equity.
Lack of funds is what fails most of the traders in this game. And by Enough Funds I don’t mean $1,000 or $10,000 but it’s in $100,000 plus digits. Because it’s not realistic to have a small account size and expect making a living out of it. That’s the mistake most traders make. And this is what makes them trade big lots that end up in margin calls. If a trader simply follows this rule of not risking more than 1 or 2% on any single trade, there is no way to blow the account anytime soon. What’s the average account size of a new trader? $500-$2000? And what do you think would be a realistic expectation per month from this account? Only $10-50 (that’s still a lot). Is it worth it trading that hard for a month for just $50? Instead one can easily make much more than that in a single day by working even with minimum wage and no investment to risk. Let's assume 20% success rate here, so now we have only 10 traders left who successfully completed the first 2 stages.
Stage3: Finding an Honest Broker (10
This is a stage, which is totally out of a trader's control and here I totally agree with evertontrade’s point of view that NEVER STOP BEING SCEPTICAL(http://www.forexfactory.com/showthre...15#post6181915). Let’s say all those remaining 10 traders are ready to go Live by investing their hard earned money with a broker. Some of those 10 trader’s will fall pray into some bucket shops (brokers) and will face all the difficulties like (platform problems, spread widening, re quotes, SL hunting, withdrawal problems, etc etc.) and What are the chances of the remaining traders?
Never Stop Being Sceptical...
Let’s say they are very good at implementing their strategy and are profitable, the question is For How Long? By going Live and by trading with a broker, they are actually revealing their strategy to a broker. Who is a broker? An entity that has 1000 times more Funds/Money that the trader. Why don’t they (broker) just follow these profitable trader’s trades, instead of earning only 2 pips spread from them? Why don’t they (broker) just hire those few profitable trader’s and let them trade for them in big digits? Is there any affect on a strategy when it reaches the masses? What if all or most of the traders use the same strategy?
Never Stop Being Sceptical...
Is Forex Real, Is it Profitable?.................YES, IT'S REAL and it's profitable.
But then Why do 90% traders fail?
BECAUSE, Forex is not EASY and to be SUCCESSFUL, you have to go through few stages successfully.
You can evaluate your readiness by doing a checklist below and then ask yourself if you are really ready to go Live?
Stage1: Learn Forex, Practice Forex, Find a strategy & Follow it with discipline
Just to understand it better, let's assume we have 100 new traders who wants to try Forex for various reasons. Now the first three parts; Learning, Practicing and Finding a profitable (& suitable) strategy for you can be easy as lots of forex resources available (online, forums, books & mentors) BUT is still very time consuming tasks. And among those 100 traders, there are people from different backgrounds, some work full time, some study full time, some have a running business, etc and it's really hard to spare the time needed for these tasks. If they pass these tasks, then the hardest part is very difficult to pass; that is, to Follow your strategy with Discipline. How many of the 100 traders, do you think, will finally pass the First stage successfully? For educational purpose only, let's assume (50% success rate, So 50 out of 100 are out)
Stage2: Enough Funds to support your Equity.
Lack of funds is what fails most of the traders in this game. And by Enough Funds I don’t mean $1,000 or $10,000 but it’s in $100,000 plus digits. Because it’s not realistic to have a small account size and expect making a living out of it. That’s the mistake most traders make. And this is what makes them trade big lots that end up in margin calls. If a trader simply follows this rule of not risking more than 1 or 2% on any single trade, there is no way to blow the account anytime soon. What’s the average account size of a new trader? $500-$2000? And what do you think would be a realistic expectation per month from this account? Only $10-50 (that’s still a lot). Is it worth it trading that hard for a month for just $50? Instead one can easily make much more than that in a single day by working even with minimum wage and no investment to risk. Let's assume 20% success rate here, so now we have only 10 traders left who successfully completed the first 2 stages.
Stage3: Finding an Honest Broker (10
This is a stage, which is totally out of a trader's control and here I totally agree with evertontrade’s point of view that NEVER STOP BEING SCEPTICAL(http://www.forexfactory.com/showthre...15#post6181915). Let’s say all those remaining 10 traders are ready to go Live by investing their hard earned money with a broker. Some of those 10 trader’s will fall pray into some bucket shops (brokers) and will face all the difficulties like (platform problems, spread widening, re quotes, SL hunting, withdrawal problems, etc etc.) and What are the chances of the remaining traders?
Never Stop Being Sceptical...
Let’s say they are very good at implementing their strategy and are profitable, the question is For How Long? By going Live and by trading with a broker, they are actually revealing their strategy to a broker. Who is a broker? An entity that has 1000 times more Funds/Money that the trader. Why don’t they (broker) just follow these profitable trader’s trades, instead of earning only 2 pips spread from them? Why don’t they (broker) just hire those few profitable trader’s and let them trade for them in big digits? Is there any affect on a strategy when it reaches the masses? What if all or most of the traders use the same strategy?
Never Stop Being Sceptical...
