Dora Wi

Yes, it happens that people run into scams or just generally fail to profit in the beginning. Like many things in the world, forex can be used for unethical purposes, but that doesn't mean there's anything inherently wrong with it.

I agree with the opinion that forex is hard work. It takes a lot of learning and effort to be successful, especially in the beginning. It is a field where learning and improvement go on for a lifetime.

Interesting idea. On what basis do you decide whether to enable reverse trade or not? How do you know if it's the right choice in a given situation? It sounds very risky.

This is good advice. It's easy to feel like you just want to quit if you are experiencing losses or hardships in getting the hang of trading. But if you quit, you might miss out on opportunities that you would be capable of achieving otherwise. But if you feel like you are burnt out or lost sight of your goals, that might be reversible by a little rest and self-reflection.

In my opinion both fundamental and technical analysis are important. Fundamental analysis is good for knowing what is trending at a given time, recognising what is worth investing in. And technical analysis can help determine exact entry and exit points. They complement each other nicely.

I agree that starting your week right is important for success. As you spend so much time working it can feel like days, weeks, months just go by so quickly. Reviewing your progress and making sure that you get some rest during the weekend can help make sure you are on track and that you don't burn out so easily.

Demo is a really useful tool. Not just for beginners but also for everybody who wishes to try a new strategy or fine-tune their existing one. We have to be mindful, though, that on a demo account we don't experience emotions to the same extent, the fear, overconfidence, etc. are not so strong when we are not risking money. So we have to be careful when transitioning to a real account from demo.

Speculation is indeed entirely different from gambling. Many people treat it that way, though. The existence of binary options doesn't help the reputation of forex either.

Gaining knowledge and experience and having a trading plan that you trust can help combat the fear. Using a demo or a cent account is also a good idea - the fear doesn't appear as strongly there but it's good for testing your strategies and gaining some confidence.

The internet has definitely gave the opportunity of trading to a lot of people who didn't have access to the markets before. I recently heard that due to COVID a lot more people are now interested in online trading, too, as people are looking for remote work opportunities.

Can online educational materials be as good as a real-life tutor or mentor? I've never had one. But it's true that you can find lots of resources online that can help you with starting to trade.

Both your knowledge and the broker you use are important. But knowledge come first. You can choose the best broker in the world, if you don't know enough about trading, it won't help you with anything. You also must not blame your own mistakes on the broker. However it is crucial to choose a broker that is right for you. You especially have to make sure that you don't get scammed.

Yes, I think people who believe you can't earn money with forex or the concept itself is a scam doesn't know too much about it. Forex itself, of course, is not a scam. There are many companies, though, that scam people, so that's something you should always watch out for.

I totally agree! I'm a big fan of reading, it is a great tool if you want to learn something new, especially nowadays when audiobooks are widely available. What are the books you have find helpful? I personally really like the works of Mike Bellafiore and Van Tharp.

I think the reason why the percentage is so high is because many people abandon trading after a few initial losses. I would be curious what the number would be if the statistics looked at traders who have been doing it for a while. The wording is also a little tricky. Technically, all traders lose money. The trick is that you have to win more than you lose.

Controlling your emotions is something that can be difficult, because it is not something we can simply learn from a book - it's something that is the result of a lot of practice and self-reflection. But if we put in the work, it can be good for not just our trading, but other areas of our lives as well.

The goal of trading is of course to make money, but the goal we should really keep in mind is to make progress and learn as much as possible, as money is the result of our progress and experience.

I think you are right. Learning is very very important, and there are so many free online resources that you can use to learn to trade. A beginner might feel greed, like they want to start trading and make money rightaway, but that mindset leads to more losses than wins.

Apart from your broker's attributes, there are also some personal conditions you should be aware of. Scalping is not for everyone - some people find it too fast-paced and stressful, and you also have to spend more time on it than if you trade on longer timeframe (unless you are into automated trading). That said, scalping is a great option for making profit.

How do you suggest beginners should start out? I don't think it's necessary to avoid the forex market. A beginner should learn a lot about it and practice in a demo account first, though.

I'm so glad this post exists. Forex is not an easy way out of a tough financial situation, and not something that will get you rich effortlessly. Sadly, I see many ads that prey on people who are in a bad situation right now.

You need to take risks but you have to do it the smart way. Risk only what you can afford to lose, learn adequate position sizing, and use stop loss orders. In short, you should only take as much risk as absolutely necessary.

Risk is totally natural in every market. I'm sorry that you don't like forex because of this, but it is not true that you can't make money from it. It is difficult, takes a lot of work, but if you try consistently and not make money, that's not the market's fault. There are many tactics to minimize your risks that can help you not lose money.

Controlling emotions is important but many people think that means you have to suppress your emotions when they emerge, which is not exactly productive. Everybody should find a healthy outlet for emotions. It can be exercise, art, meditation, or punching a pillow, whatever that can calm you down when you're angry or make you feel better if you lose your confidence.

It's true that you should be mindful about how much money to deposit to one broker, but the reason is not just the leverage. In terms of risk management, you are better off depositing a bigger amount and trading with a smaller leverage than vice versa, because leverage can really magnify your losses. Plus there are regulatory limits to how much leverage brokers can offer. That said, if you have a lot of capital you are better off with distributing it over several accounts so that you don't lose everything if something happens to one broker.