I don’t think many people have very realistic expectations when they get into forex trading. For one thing, I’m sure most newbies aren’t aware of the fact that 95% of forex traders will lose money. I really don’t think that statistic is going to change the anytime soon. So you’re probably thinking, based on that statistic that its real hard to make money trading forex. Actually it isn’t. You just have to stop doing what the other 95% of people are doing. Sounds simple, enough doesn’t it?
For starters, many people get into the forex market with a Vegas-like attitude. They feel like they are working the roulette table while yelling “come on daddy needs a new pair of shoes”. I don’t know how many people end up losing money when they go to Las Vegas, but I wouldn’t be surprised if the percentage is somewhere around 95%. Coincidence? I think not!
Forex trading is both an art and a science. Its not based on “feeling lucky” or having a strong intuition.
Trading the market is like learning another language, or learning how to play guitar. Chances are, you just can’t wing it, and expect to make money. If it was that simple, you’d be reading about how many first time forex traders have become rich. I, frankly haven’t heard of too many stories like that.
To understand the market and to be able to speak its language, you have to understand the concept of price action. Price action entails the concept of using patterns in the market that happen every single day, but most people don’t see, and using it to predict the future of currencies.
By: John Templeton
About the Author:
John Templeton has been a successful forex trader after learning how to trade price action. He was able to take this concept and create his own strategy called Trading In The Buff.
