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The Forex market is vital to the general prosperity of the free world economy. Why? Some $1.5 trillion dollars worth of international currencies are bought and sold every single trading day. It is by far the largest traded market in the world. This volume of trade is equivalent to over six months of trading in the New York Stock Exchange, which has an average daily volume of $10 billion dollars. Even though the major focus in this country in reference to investing has always been and still is the stock and equity markets, the Forex market is 150 times larger than the New York Stock Exchange. Frankly speaking, I was thinking about an article I read some time ago that 90% of traders who ever trade lose their account and that 10% actually go bankrupt. If the first number doesn't scare you then the second definitely should. Why is it then that there is such a large number of traders failing? It is not because they are stupid; in fact most traders have an above average IQ and are above average in most categories such as education and income. So why do they fail? Lack of trading education! By education I don't just mean learning how RSI works or drawing lines on a chart. I mean thoroughly educating yourself in all aspects of your chosen profession. Educating yourself on the correct psychological approach to the market! Educating yourself in the correct risk management techniques relative to your account size. Educating yourself in the correct entry and exit methods for the trading style that suits you. This, my friend, is where I hope to be of some help. I don't have all the answers nor do I profess to be some kind of guru but I will do my best to point you in the right direction. Common Misconceptions Of New Traders 1) They think they can trade consistently with an 80% accuracy. 2) They think they can turn $1000 into $100,000 in six months. 3) They think they can predict turning points in their given markets to within minutes. 4) They think they can buy a system that is 100% accurate. 5) They think they will quit their jobs and make a living full time after a few months of trading. What's the reason that so many new traders believe that trading is an easy way to make big profits? Propaganda! We are continually bombarded in magazines, emails and the general media with claims of making astronomical amounts, just by applying the vendor's latest method or system. Don't get me wrong, there is good stuff out there but the vast majority is not worth the price you pay. So, be careful.
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