Most of the people do not believe in the fact that with Forex trading one can earn a living. A disbelief in this particular idea is encouraged by several tales of trauma gained by an unfortunate dealer. All of us have heard about horror stories, tragic accounts newbies and have the temptation to dismiss a basic trading idea to earn a living.
On the contrary, we offer some success stories
Most of the dealers say, yes, it is definitely possible. See me; I earn my living through trading. There are some individuals who after hearing or reading such things say, I believe he is a liar!” Most of the people believe that if he has enough money, it’s just because of the reason he was rich earlier. A person cannot become rich through trading or we do not know how much money did he loss before earning a profit.”
An important thing to keep in mind is all the responses are not negative. Among people who have such negative thoughts, you will also find genuine people with open mind who say “ how can one earn his or her living through trading,” How long should one trade to gain maximum benefits?” or what is the strategy used by them?”
From the point of view of a trader, allow us to make certain observations
All of us are aware of the fact that the trading market is quite unpredictable. No one among us knows where the cost will move. We can seek assistance from the fundamental and technical analysis for analyzing the trading market. The features of a trading market gave rise to three kinds of dealers known as casino traders, educated dealers and lastly the bookworm traders. We will have a close look at the dissimilarity between these three kinds of dealers.
Casino traders are the dealers who make decisions depending on the instinct. This type of trader generally has two scenarios. Firstly, the cost might move down and secondly, the cost might increase. This kind of approach to the trading market is as same as gambling, but the dealer might adapt and also win for a specific cost. Depending on his or her experience, one can select to make an entry or watch the trading market for a clue of movement before one takes an action-unluckily, the direction of a trading market is unpredictable and can also mislead an individual. This trader will achieve their best for following a specific trend, but without properly understanding the working of the trend. They will generally have past cost history to judge; therefore they will learn every characteristic of the pair by noticing historical movement.
This type of trader might employ certain kind of oscillating indication for indicating when the device is oversold or over purchased, to assist them in deciding whether they should purchase or sell deprived of any idea of exit, entry and the level of stop loss. They will make an entry if they believe the cost will not shift in a proper direction. As you might think, most of the “casino traders” are not able to last for a long time period.
Another type of trader known as Bookworm trader has earned Forex knowledge from resourcing the free resources found across web, taking part on the forex forums, going through the e-books available at free of cost and other important materials. They spend most of the time in developing, testing and revising the trading system and schemes and going through the ideas of the trader at the end like traders typically go through by error and trial and it might be long before one get ready to do the trade in a confident manner. Some of them utilize live accounts for testing whether the system works in a proper manner or not and there are many who attain the account. The better “bookworm traders” will find an increase and could grow to a successful dealer, but price of reaching the point is high.
As all of us know, nearly 90% of the traders do not achieve success and about 10% survive successfully in the trading market. Let us discuss how the educated trader- a dealer who has education about forex will make the deal. Before you invest money in the live account, they make investments in themselves by starting tuition for giving Forex education. For few weeks they will learn from wide experiences of their mentors and educators, trade on the demo accounts and also absorbs several significant lessons that the bookworm traders and casino traders learn after undergoing huge painful and expensive losses.
When the educated dealers begin trading the live accounts, many people continue being handled by the educators, allowing the ability of trading enhance regularly and moves down the way for becoming a successful dealer. They find a return on the early investment in a short time period, when they start collecting a huge gain from trading. By making investments, they prepare for several market situations that several other dealers do not make preparations for.
So, can Forex trading help one earn their living?
The reply is definitely yes. With proper education, mentoring and consultation with a knowledgeable educator one can earn huge profits in trading.