FOREX TRADING 101

FOREX TRADING 101

INTRODUCTION

Trading internet foreign exchange (forex) is a very high risk business. It is important to have a sound Knowledge of the operation of the forex market and the risks involved to be successful. Forex market could be likened to a mighty ocean and retail traders are small fish swimming with sharks. It is very easy for such traders to be devoured within an instant resulting in financial ruins. Most traders often fall into this dangerous trap. The fact of the matter is that the odds are simply against the retail traders. The question at this point is how do you survive in very dangerous environment that has ruined the life of many? The statement that 95% of forex traders will end up being as failure is well-known to all forex traders. What are the things that a forex trader need to do to avoid being part of the statistics of failed trader and be counted among the 5% elites of successful traders?

WHY MOST NEW TRADERS FAILED
I considered it necessary to address why most traders failed because majority of them come to the market with the mindset that forex trading is the easiest way of making money. Having studied forex critically for the past six months by learning from leading forex websites, books, experienced traders in various forums, attending seminars and trading over 10 systems both in demo and life accounts, I have come to realize that what is required to be successful traders are quite simple rules. In the process, I have blown over five accounts both life and demo. I even reached a point where I was making constant profits on my demo accounts, but ended up still blowing my live accounts. Why am I a successful with demo accounts and end up failing with life accounts?


I will make efforts to provide answers to some of these questions in my next post.