Truth about Forex trading

Whether you are a person who just heard about Forex opportunities and is trying to learn what stands behind this lucrative business, or a trader who has tried Forex trading already and got the first bumps and bruises and now is looking for answers "Why", this True Forex crash course is for you.

Ever saw on TV, in the ads, on the websites, on the street: "It is time to make real money! Start trading Forex!"
"Learn how you can make income by trading currencies, it is easy and we'll show you how!"
"Are you up to a new career? Forex trading could be just what you need?" Etc, etc.

Well, yeah, get up, and start making money trading Forex, quit your day job soon, become wealthy the way you always dreamed about... Why the heck then everyone is not a millionaire by now? Hmm, interesting, right?

If it sounds too good to be true, it probably is.

Not that Forex trading is a scam, it is not. Forex is a legal global market with serious participants like banks, large corporations, hedge funds and other large and small financial institutions. It is a serious business with trillions of dollars turnover a day.

By the way, if you need some general introduction to Forex, review this: What is Forex?

What everyone is hiding from you is that making money in Forex for individual participants like you and me is so difficult that you are guaranteed to fail during you first 2-5 years of trading.

Good perspective, huh? But no one wants to believe that. Despite being told that 95% of beginner traders fail in Forex, everyone is confident that they won't be among those losers; instead they will join the remaining 5% of successful traders... How silly is that?

"Oh, I'm smart, I can trade Forex" - I hope you change you mind after reading about Forex traders' false hopes.

Did you know that majority of Forex brokers which operate as market makers (Market makers don't put your orders on the global trading arena, they literally make the market for you inside their company by Buying what you Sell, and Selling to you when you want to buy), so, did you know that those brokers play odds game when luring you to open small accounts with them? They are more than confident that you'll lose your first account within 2 to 3 months of trading, and, since they make the market for you — trade against you — they'll have that money as a profit.

Forex brokers are excellent risk managers, so don't worry about them if you think they'll lose when you begin to win. They analyze clients' trading and risks, so that while still taking trades against one "easy target" client, they'll protect themselves against more advanced clients by not trading against them, but rather offsetting risks by immediately placing equal orders with other financial companies.
Good explanatory scheme about Dealer System can be found at http://www.100forexbrokers.com/stp-ecn-brokers

Besides that, we all know that brokers earn their income on spreads and commissions.
Forex brokers have direct interest in having you as their client; they won't tell you all those trouble stories about Forex trading truth to scare you out; their goal is to show that making money in Forex is an achievable goal, and you can be successful. To make you even more confident they'll offer low spreads, free trading signals and market reports, they'll give you tons of trading tools and advices, they'll even give you free strategies to trade upon... and yet, you are going to fail sooner or later, and they know it. Market maker Forex Brokers compete for clients, because if a client fails, he'd better bring that money to their company and not to a competitor.

Forex brokers are not your friends, but rather your partners — they will do business with or without you. I think you can pretty much conclude this from the first fact.
You need much and much more knowledge than brokers teach you in basic Forex trading courses, you'll need much more skills and practice to be able to trade side by side with Big Forex players.

There are, however, such brokers, who never trade against clients by "making an artificial market", instead they process your order to the global arena. Such brokers are called ECN brokers — companies that offer Electronic Communication Network trading.
These brokers earn their money on commission fees that traders pay each time they open a trade. Thus, an ECN broker is interested in a long-term partnership with a client and client's overall success, so that a client will continue bringing profits to the broker by executing new orders.

What other surprises Forex brokers have in stock for you? Forex lesson on brokers' creativity will provide the answer.

MORE FACTS, of course, are coming...

Challenging your dreams about happy Forex trading with Forex lessons you won't forget!
Learning how to grow sharp teeth and rip Forex mystery apart!

To buy or not to buy a Forex system: digging deeper into the logic.
I'm sitting and thinking about Forex systems for sale yet again. Just saw another SCAM website the goal of which is to BLAME SCAMMERS (their colleagues, actually) for...

Quick Quiz: Can anyone really make money in Forex?
Forex is a wide high-speed freeway to financial disaster IF you don't know how to survive.
Simple? No! Easy? Never! Quick? No way!
Man, can anyone really make money in Forex then?
Yes!
How?

Truth and wisdom of Forex trading
Traders talking about own experience and challenges of Forex trading.
Tired of me? Then listen to others :)

Forex lesson #6. Part 4. Interest rates and negative rollover
How to make traders trade more frequently? One way is by re-defining the rollover rules - make the rollover negative for all pairs, and it will hurt to hold long term trades... Clever, huh?

 

 

 

 

FOREX  TRUTH

I wish you to never experience that, whether with Stocks, options or Forex. Each time you do something silly, illogical to your money, recall this photo.

Good luck!