As a beginner in forex trading, there are times when you feel hopeless and ready to quit You are giving all of the efforts and time but the losses are still greater then profits. You start wondering if forex is really a matter of gambling and you are simply not the lucky one. Should you continue trying or losses are the signs to call it a day? Is forex trading for everyone?
Is Forex Trading Really Just Gambling?
Forex trading cannot be conquered in a day. It takes a lot of effort, discipline and time to truly become a guru. As a beginner in forex trading you must be ready for:
1. Trial and error, which at times results in losses. The trick is to consider these losses as a down payment, or educational fee. Forex is not theoretical profession based on text books. You have to get your feet wet at some point to really understand the market.
2. Getting lucky. Yes, it is possible that you have several rounds of wins based on luck, however do not expect it to go on forever. I cannot emphasize enough how important it is to actually understand the real reason of the win. Why did the price move the way it did? Why was the position a winner? One of the critical part of building the right forex trading strategy is to keep a journal of the trades and analyze the market via your notes. What happened in the past will surely repeat itself again in the future and you better be prepared for it. Forex is risky and, while many beginners consider forex market a casino, it is far away from gambling. Unless you come up with a good strategy, back test it for several month and patiently correct the flows, you will lose.
3. Feeling lost and ready to quit. At times, you might feel that you are ready to fluke out. Don’t let the losses discourage you from understanding forex. The more time you spend practicing, reading news, evaluating technical and fundamental analysis, getting involved in forex community via forums and blogs etc. – the better chance you have in succeeding.
When you meet a professional forex trader, you see a person without debts, a person who knows he deserves much more than 9-5 job, an unbearable boss, ugly office desk and absolutely no time for himself and the family. Forex trading is sure attractive in many ways. With enough effort you can change your life for better and say goodbye to your old self.
The first thing you should do is to stop looking for a get-rich-fast scheme. Forex trading is not gamble at all. A good proven system and a set of rules will make you money. If you still consider forex a gambling game and you rather relay on luck, then figuring out how market really ticks, you might be better off playing bingo.
Forex trading is risky; however with the right money management, risk management and discipline you can reduce the risk to the minimum. If forex is done wisely, you can spot tones of profitable opportunities.
Most importantly, don’t let bad days put you down. Get used to the fact that you cannot measure results in a short term in forex. After sequence of losses, you can get a big win and end up having a great profit at the end of the month.
Beginners in forex trading sometimes freak out after couple of bad days. Keep in mind that it is part of the business and there is nothing wrong with it. Stick to the plan, manage your money well, don’t hunt the market for good positions, stay away from revenge trading and over trading, be overall persistent and it surely will pay off. There will always be some losses when trading forex, it’s just a part of the game.