Many people want to learn how to earn on the Internet trading. Lots of them are curious if Forex is scam, because it is a common fact that 95% of traders lose their money. The problem is that almost all new traders have a wrong attitude towards the Forex market and trading. This improper mindset prevents them to earn profit.
The main idea, perhaps, that Forex trading involves many risks. Lots of people become interested in trading and start to trade with real money. Usually they don’t have any idea about money management and risk the amount of money that they can not afford to lose. Don’t say to yourself, “I’m in luck and everything will be all right.” It definitely won’t and you are going to lose your money during some trades. There are two solutions of this problem: a demo account and “the rule of 2%.”
To start your trading career with a demo account is the best thing that you can do for your success. Using demo lets you improve your trading skills and helps you to avoid big and stupid losses when you start trading with real money. Next obvious rule is that you shouldn’t use more than 2% of your funds when trading Forex. Never do that and you will be comfortable with possible losses, because you can afford them. You will be OK financially and emotionally even if you lose 2% of your capital.
Another important factor that you should take into account is your emotions. Never make trades when you are upset, worried or excited. The solution here is to have a trading plan and apply this strategy. It helps you to think logically and calmly and deal with the unpredictable Forex market. By the way, the market is your problem number three.
Newcomers try to understand every market movement and indicators at one time and get confused with plenty of information. The right trading strategy should be simple, not expensive and includes the minimum of indicators. It should work properly and this is the most important about it. Choose the simplest free forex trading software and trade on it first.
Your Forex earnings depends on your attitude to trading, first of all. Be careful and attentive to money management, practice and control your emotions, learn the market and follow the plan.