What is Forex: Why Some Traders Don't Profit and Lose Money.

February 8, 2016 by Staff
Filed under Business, Money, Opinion, Tech/Internet, Weekly Columns

(ThyBlackMan.com) Answering the question of what is forex does not only mean exploring the practices of this lucrative business, it also means exploring the many reasons why people lose money and fail at trading. Here are some of the reasons why a lot of individuals don't profit in foreign exchange trading.

What Is Forex About? Studying Trends and Research

Here's one of the best answers I got to the usual what is Forex question – it's not about exchanging currencies, it's also about studying trends and analyzing data sets to get insight whether certain currencies will go up or crash.

A lot of beginners in the game don't have the patience and discipline to pore over data sets, stare at spreadsheets and analyze forex charts. They rely on gut and their instinct. What they don't is that this endeavor is foolish.

The process of exchanging currencies is fast. The decision making process should be long and taken with a lot of caution. The most 2016-xtrade-online-cfd-trading successful forex traders spend hours, even days, studying and understanding data sets. They closely analyze the trends, monitor the news, analyze how the subtle movements of a president can affect the economy or a storm forming in the sea can have drastic effects on a nation. Taking the time to study provides answers to the question, should I buy this type of currency and should I sell mine.

Lack of Hours and Time in The Business

What is forex? It's a profession, not a simple moneymaking gig. For you to greatly become an expert in the industry, for you to know the many practices and technique, for you to fully master the art and science involved in currency exchanges, one has to be in the thick of things for an extended period of time.

Commit to the profession. Spend hours listening to experts and reading case studies. Explore different currencies by trying them out. Trade and trade, even if you're trading small quantities of money. Make sure to succeed and fail at the same time. Take risks and chances. The more hours you spend in foreign currency exchange, the more experience you'll have. And the more experience you'll have, the larger your chances of making an extremely large profit.

Lack of Commitment

What is forex? It's a commitment, not a freelance type of career. A huge mistake among new comers is that they try out a currency for a short time and abandon it should things go sour and should they start losing money. The lack of devotion and long-term plan is a bane in this career.

Becoming successful in foreign currency exchange takes time. It takes years. It means creating a full proof plan, deciding on the currencies to work on, and tracking the behavior and movement of those currencies in relation to their respective countries. It means pushing through with the plan. It means staying on course even when the time gets rough, even when there are losses.

Stay in the forex game. Devote time and energy to the project. This is what expert and successful Forex traders have done for years. This is the secret to their amazing profit.

Don't be a forex failure! Take heed of these advices and be on your way to making money.

Staff Writer; Paul Rogers