Those who say otherwise are typically affiliates of Forex brokers who stand to gain a commission if you sign up and start trading right away. They are unscrupulous because they push newcomers to risk money before they have the necessary research to make informed decisions. People who push others to start trading Forex before they are ready are providing the entire industry with a disservice. By giving new traders a false sense of security and assurances of success, they are not just mentally unprepared for the fact that losing some money is inevitable.

Still, they are also financially unprepared as they blow their entire available capital by not expecting to lose some and win some. If you think that it is easy to make money on Forex, it depends on what your idea of difficulty is. For example, being a firefighter is a difficult job. So compared to other jobs, yes, Forex is easy in the sense that it requires minimal physical exertion. But it does require vast amounts of studying, continuous self-development as well as plenty of trial and error.

What makes trading Forex so difficult is the constant trial and error. You need an incredibly thick skin to stick with it. That sounds like a very discouraging success ratio. You need to be prepared to let go of a number of your positions. Many new traders approach Forex trading in a moment of their lives when they want to make money here and now.

Anyone can teach themselves to learn how to trade Forex, but not overnight. One of the best ways to make Forex easy to learn is to see what others are doing. For a new trader to want to know how much money they can make trading Forex is a valid question. However, the question is too vague to give a reliable answer. Compare this question to one like; how much money can I make by running my own business.

There is no clear answer until you can start learning and developing your trading strategy. In a lot of ways, Forex trading is easy. It does offer a gateway to that picturesque lifestyle that so many strive for. Theoretically, you can work from anywhere, be your own boss and make thousands of dollars a day.

As your own boss, you might find that you end up working harder than ever before. This is the main reason trading is a complex endeavor. Trading is naturally different from other careers for the main reason: human emotions. Firstly, you are betting with your own money, and when money gets in, emotions start to play a major role. Secondly, our natural fear of failure and personal ego. When emotions are involved, the personality traits of the person will be very key to their trading success or failure.

How the person reacts to a certain situation will be vital. For instance, the simplest example that can happen to all traders is when the market stops you out by a pip and then moves back in your expected direction. Are you angry? Another different example of emotions you can encounter is; the super confident super uncertain ping pong emotional stance.

This happens when you make a streak of good trades and you feel you are a king! Then start to lose and encounter multiple losses in a row, you start questioning yourself again and skeptical thoughts sneak into your mind. What we need to understand is that our human nervous system is created this way.

If you are a newbie and keen on learning, check out my comprehensive Forex tutorial for beginners , then move on to the practical Forex technical analysis tutorial. Get notified when a new post is published. We do not spam! Check your inbox or spam folder to confirm your subscription. Hi, my name is Luay Afouneh AKA Technician and I am here to share knowledge. My posts are my personal thoughts and journey.

Save my name, email, and website in this browser for the next time I comment. Yes, add me to your mailing list. If you searched google for the three Introduction Identifying a trend reversal in Forex is not an easy task, and will never be false proof. However, following a consistent process to I would like to invite you on a special journey in the chart and in-between candlesticks.

I will do my best to make the ride enjoyable.

FX , Tips , Trading Education , Trading Tools Tips. Anyone who is looking to trade forex as a casual hobby with minimal time commitment should reconsider. Concurrently, anyone who simply jumps into forex trading without the prerequisite research, technical tools, and emotional framework is effectively entering a casino and betting on black.

Flashy headlines and advertisements have severely distorted the perception of the real success rates amongst forex traders. Definitionally, the zero-sum nature of trading means that only half of all market participants can outperform the entire market. Additionally, brokerage fees and informational asymmetries will reduce the number of fair traders who outperform. That is, the cost of trading eats away at performance and produces a lower net return.

Additionally, assuming some number of market participants will always be using material non-public information to their advantage, traders who do not use such information will always be inherently disadvantaged. Anyone who claims to have the perfect secret to trading forex would be running a hedge fund and spending money to hide their proprietary trading method, not selling it on the internet.

Unlike other asset classes i. That is, when holding a currency, if the currency is being held as cash rather than a bond or other interest-bearing instrument, it can only produce a meaningful return via appreciation relative to other currencies. Stock traders who held stocks for some portion of the year will, on average, have captured that beta in proportion to how long they held the stocks. Of course, deriving the precise figure is much more complex because stock returns are not distributed evenly and the days, hours, etc.

during which the stocks were held would skew that result. Despite that skew, assuming that stock prices continue to appreciate over time, the underlying tailwind which causes stocks to naturally appreciate will be captured to some degree by stock traders. Notably, the absence of a general tailwind in forex makes no difference in potential for alpha generation, only in expected absolute returns. Alpha generation returns above the index will still follow the aforementioned restrictions of a zero-sum game with asymmetric information and fees.

The tailwind which is present in equities represents more of a cushion against bad performance than a reduced difficulty level in achieving abnormally good performance. Forex markets generally have substantially lower volatility than other financial markets and traders therefore have a correspondingly greater degree of difficulty in generating large returns. To compensate for this, leverage is often used to produce meaningful percentage gains in the forex markets.

The important point is that this lack of volatility makes it all the more difficult to trade forex. To read more about what moves forex markets and why they move less than other markets, check out this article. Now that the challenging nature of forex trading has been established, it is worth noting that making money trading forex is not impossible, it is simply very difficult.

For those who decide to undertake such a venture, consider your time availability, capital availability, and emotional capacity to undergo such a difficult process.

We believe that traders need an edge that can be gained by statistical analysis. The way we accomplish that is by running statistical models in real-time and helping you to make the right decisions in real-time. If you would like to: Understand recent or current economic or news events Know how the market reacted in similar situations Get control over your trading This product might be for you. CO APP!

Do not take the opinions expressed explicitly or implicitly in this communication as investment advice. The opinions expressed are our own and are based on statistical data analysis.

Past performance does not guarantee future success. In addition, the assumptions and the historical data based on which an opinion is made could be faulty. All results and analyses expressed are hypothetical and are NOT guaranteed. All Trading involves substantial risks. Leverage Trading has large potential rewards but also large potential risks. If you are not an investment professional please consult one before risking capital. Statistically back-tested trading ideas are generated by BetterTrader's own proprietary artificial intelligence algorithms.

FX , Tips , Trading Education , Trading Tools Tips Is forex trading easy or difficult? Posted by bettertrader on March 21, Risk Management Minimizing Trading Risk and Learning Through Experience. Tips Commonly asked Questions from Beginning Traders. Helpful tips for new traders. Forex does not naturally appreciate Unlike other asset classes i. How does volatility affect forex returns? forex Volatility. Learn more Get BetterTrader Free. RECENT POSTS. Are We in a Recession? June 30, Minimizing Trading Risk and Learning Through Experience.

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The Advantages of CFD Trading. The tailwind which is present in equities represents more of a cushion against bad performance than a reduced difficulty level in achieving abnormally good performance. Unlike other asset classes i. Forex Gap Trading Simple and Profitable. If a gap is going along with the higher trading volume, it may take a long time to make the breakaway gap. Including among others; very low margins, free trading platforms, high leverage and around-the-clock trading. Another reason to do Forex gap trading is to make the trade after the Forex gap is fill.

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