The first thought that comes to a layman when he thinks about the word “Forex market”, is gambling. People think Forex is some kind of a get-quick-rich scheme. However, this is entirely incorrect.
The Forex market can be considered as the biggest whale in the world of business because this market deals with all countries’ currency. So, basically, it is a business which cannot be taken for granted.
Now that you’ve gotten started with trading in the demo account, here are some the facts you must know before you put in real money into the market.
There is no single trader who has NOT lost money in trading.
This very first fact, satisfactorily answers the question in the title.
Note that, about ninety-five per cent of the traders in the Forex market lose money consistently. In other words, only five per cent of the traders has found success in trading. The primary reason for this percentage is due to lack of planning, practice, discipline and even poor money management for that matter.
So, if you are a stubborn person who hates to lose, you might want to change your mindset before you enter into this industry. Because even if you have the best strategy, you will undoubtedly lose money at some point of time in your trading career.
This market is not for the unemployed or the ones who are in debt
Many unemployed individuals end up entering the forex market as an alternative career option, with no knowledge in this field. They think trading in the forex can effortlessly generate money for bread and butter. However, this is a big misconception in people.
If you are planning to enter the forex market by opening a mini account, you must possess at least $10,000 in your account that you can afford to lose.
As a matter of fact, do not expect to start with a few hundred dollars and become a billionaire overnight.
Unfortunately, there are many web portals which misguide the people about the forex industry. They do not open up these harsh realities of this industry.
Forex is not one’s cup of tea
Unlike real business, Forex trading is a skill that takes time to learn.
From the above facts, you must be under the impression that this industry isn’t your thing. Well, the irony is that this industry is made for everyone. All it takes is proper education, training, disciple and skill.
It takes a lot of efforts and experience to master the skill of trading. So, if you show persistence in this industry, then even sky is not the limit for your success.
To sum it all up, there is no substitute for hard work, practice, and diligence.