A lot of people wonder if money making in Forex is a viable goal. I know that I have wondered that myself multiple times especially in the beginning, when I first started trading and later, when I had a series of losses.
I now think of this question as entirely pointless. To be frank, I think we have asked the wrong question. The reason is that you could ask similar questions for almost anything in the world.
Can you make money in direct selling? Can you make money in real estate? In stocks? Is there a chance to make money with an e-commerce business?What about selling cookies? Blogging, can it ever bring you profit?
Of course you could make money doing all the above but the truth is that often people don’t. In Forex, some people do make money but this is not the norm. Majority of traders lose their trading capital and quit trading in less than a year. There is however a minority that does make profit and continue successfully for years. That means that making profits in Forex is possible but most people do not do it right.
So instead of focusing on “if it is possible to make money in X” , it would be more useful to focus on “how “.
“How can I make money in Forex? How can I be successful? What does it take?”
When you ask “how” , you immediately assume responsibility and accept that there must be an effective way to reach your goal. “How” is extremely important because it paves the path to learning and learning makes us improve.
This is true not only in trading, but in every aspect of life. It is common for losing traders to blame the platform or the broker for their losses but rarely this is the problem (of course technical issues can occur sometimes). Usually, losses occur due to incorrect trading decisions, miscalculation of position sizing, over-leveraging, gambling attitude and insufficient capital.
It is extremely often that I have encountered gambling attitude among forex traders and a thirst for fast money. But the currency trading market has no connection with casinos, football or horse betting. The currency pairs’ moves can be predicted based on fundamental and technical data analysis, roulette numbers cannot. If you are not up for spending time understanding the theoretical background of currency trading you should either not trade or hire someone trustworthy,with a proven performance track record and relevant license, to trade for you.
It’s also important to think if forex trading is really your cup of tea. Not everyone is good at blogging, direct selling or trading. You may find it boring or too complicated for your available time and energy.
Forex entails high level of risk for loss of capital, so whatever amount you decide to invest , it must be an amount that you can afford to kiss goodbye should anything go wrong.
But if you decide to trade Forex, then it would be useful to check your motivations behind this decision and uncover the emotional needs that are hiding behind the need to make money.
Emotional processes in trading
Your mind is telling you that you are in trouble. That you are not doing enough and must find additional ways to make money. It ‘s possible that you feel anxious, worried, disappointed. You want to feel hopeful because you cannot stand the pain that this situation is causing you. So, instead of paying the bank, you top up your Forex account. It’s fine because the money you put in isn’t even half from what you need to pay the bank. Plus you maybe able to double it and then pay what you’ve got to pay.
Your mind is telling you that you ‘re of a certain age and should have more wealth accumulated. Your friends have done better than you, even couple X&Z bought a new luxury car and you still own the previous model. Your friends investments’ seem to have been really paying off, why you are still not at this level? You are just fed up waiting for your other investments to make profits, you are a bit impatient and embarrassed for your performance. You must make up for the wasted time fast, you must have something to feel proud of, so you ‘d better take some money and invest it in Forex.