Absolutely. When you have success in Forex trading, you begin to think that you "got it." You begin to believe that you have a "special" system for successfully trading currency. Most of the time, you have just been lucky.
However, this new "got it" attitude then begins to change the way you trade. You make adjustments (maybe you raise your bidding amount) and make more trades and, just when you think you are the World Forex Trading Champion, you are hit with a massive loss. You see, emotions effect our financial decisions, even if we don't think so.
The Forex Market thrives on emotional losses. As a matter of fact, 98% of Forex investors lose their money!
Friday, March 20, 2009
How To Make Easy Money On The FOREX Exchange
The Forex Market
Forex is the worldwide currency exchange. It is used by banks and institutions for changing Dollars to Euros or Yen, etc. You really don't have to know much about Forex except it is huge (over $2 trillion dollars is traded EACH DAY) - it is the biggest market in the world. Bigger than the NYSE or the bond market. Forex isn't located in any particular city or town - it is entirely electronic. That's what makes it easy for you to get involved.
The market is very liquid (you can get trades in and out fast - no waiting for a buyer or seller), there is virtually no manipulation (it's just too big for anyone to influence it), and you can trade in comfort, in your pajamas if you want.
All you need to start investing money on Forex is a few dollars and access to the Internet. Millions of people invest their money in the Forex Currency Exchange Market every day. No special conditions are required to get access to the Forex.
Losing, Losing, Losing - This Was My Biggest Problem
I knew that investing in the Forex could be very profitable. No other market in the world provides the type of financial leverage that Forex trading can provide. Just a few dollars can control thousands of currency dollars. You make your money on small movements in those currency dollars.
My problem was that as I began day trading in these foreign exchanges, I would win for a while, and then lose big. Why? Because I'm human and have emotions.
Forex is the worldwide currency exchange. It is used by banks and institutions for changing Dollars to Euros or Yen, etc. You really don't have to know much about Forex except it is huge (over $2 trillion dollars is traded EACH DAY) - it is the biggest market in the world. Bigger than the NYSE or the bond market. Forex isn't located in any particular city or town - it is entirely electronic. That's what makes it easy for you to get involved.
The market is very liquid (you can get trades in and out fast - no waiting for a buyer or seller), there is virtually no manipulation (it's just too big for anyone to influence it), and you can trade in comfort, in your pajamas if you want.
All you need to start investing money on Forex is a few dollars and access to the Internet. Millions of people invest their money in the Forex Currency Exchange Market every day. No special conditions are required to get access to the Forex.
Losing, Losing, Losing - This Was My Biggest Problem
I knew that investing in the Forex could be very profitable. No other market in the world provides the type of financial leverage that Forex trading can provide. Just a few dollars can control thousands of currency dollars. You make your money on small movements in those currency dollars.
My problem was that as I began day trading in these foreign exchanges, I would win for a while, and then lose big. Why? Because I'm human and have emotions.
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