The internet today is flooded with so many sweet-mouthed marketers, ready to convince you into signing up for their forex brokerage services. In most situations, they go as far as telling you that trading the forex market with their brokerage platform will give you an edge of making more money from trading.
Most times they try to inspire you by showing you amazing history results of some successful traders who are using their fx brokerage service.
For example, “Mr. X made $$$$ in just two days.” And you were like wow! I too can make this much if I invest. After some days, weeks or even months of struggle on trading, you realized that fx trading was not as simple as you thought it was from the beginning.
To be frank, you were fed with what you wanted to hear– the positive side of forex trading. On the contrary, the other sides were hidden from you. And these sides are important tips you need to know about the forex market.
Additionally, there is a major factor holding traders from making consistent pips, and this factor is being ignorant of knowing the truth.
Do you really want to know the truth? Here are six bitter truths you need to know about forex trading.
#1. Forex trading is not a get rich quick scheme:
This is one of the unbelievable truths traders find difficult to accept. Because, it has eaten deeper into their conscious mind; making it difficult for them to accept the fact–that fx trading is not a get rich quick scheme but an investment that requires proper planning, analysis and optimum understanding of how the market moves before making decisions.
However, those who trade the forex market as a get rich scheme are mainly traders who trades like gamer and not as business men; this is why they’re not getting their expected result.
So, to be able to maximize the full benefits of trading forex, you’ll have to reprogram your mind from seeing forex trading as a get rich quick scheme, and start regarding it as an investment that requires proper planning before yielding better result.
#2. It requires your time:
Forex trading requires your time.
Do you know that the reason why some traders have not been making real money from the forex market is because they’ve not invested the necessary time factor on this business?
Just because you saw someone who analyzed the market in just few minute and made attractive profits, does not mean you’ll have to spend the same period of time to make same profit.
This same person you’re trying to imitate, in his early days of trading, must have spent several hours daily, to analyze and understand the language of the market. And now, he’s wonderful results with minimal effort blind you from seeing the struggling side of the business.
If you are a newbie or an average trader still struggling on how to make consistent pips from trading, I’d advice you give-in more of your time to learn and understand the language of the market better.
“An investment in knowledge pays the best interest.”Said Benjamin Franklin
#3. There is no 100% certainty.
Even the market experts have mentioned this several times. The forex market is full of uncertainties –the market might be in your favor now, but before you know what is going on, it has changed direction.
This is a more valid reason why you shouldn’t position or believe that your analysis is a perfect one.
According to Jonathan Fox, a professional forex trader and mentor, buttressed in one of his writing on price action that “it is impossible to be 100% certain of what will happen next in the forex market.”
Beware of many scammers/sweet marketers who go as far as sweet-talking you into believing that every market result released by their software is 100% guaranteed. Don’t fall for that.
I’m not saying that you can’t achieve and have a profitable analysis that can earn you attractive pips; sure you can, all I’m saying is that there is no 100% certainty in whatever analysis you make.
#4. Patience is the key for consistent progress.
In this type of business, patience is the key to consistent progress. Like I mentioned at the beginning, forex trading is not a get rich quick scheme. It’s a business that requires proper planning and the right strategy for execution.
If you’re the type of trader in haste to make money through forex trading, I’d advise that you slow down, and grab all the necessary education and ideas needed to make money through trading. Not just once but consistently.
Meanwhile, earning consistently can be much possible if you’re patient. Just like the popular saying goes “the patient dog eats the fattest bone.”
#5. Wrong analysis could cost you almost or all you’ve invested.
There is no doubt that fx trading is a very risky business, the more reason why you have to take this business very serious.
Just a little misinterpretation of the market analysis could sweep up all you’ve labored for.
If you’re thinking on carrying out anyhow analysis to trade the market, I’d advise you to retrace your steps and make a smart decision. Always remember that whatever move you make has a consequent result.
Conclusion:
The truth they say is bitter to be listened to. And knowing these following facts mentioned above will surely assist you in your trading career.
Ejiofor Francis is an experienced digital marketing expert and a finance blogger. He uses his writing skills to grow businesses (start-ups, mid-sized and blue-chip companies). He is the founder of Rideforex.com.
5 Bitter Truths Every Trader Needs to Know About Forex
