What is Forex Trading For Small Speculators

All new traders want to know what is forex trading all about, and adjust to the market’s requirements accordingly. Beyond big promises and ridiculous claims.

What is Forex Trading to the Average Serious Person

All new, but serious traders, usually cynical people who don’t fall for all the marketing hype and big promises, think beyond the obvious. They ask the question what is forex trading, and where it stands relative to all those big promises of easy and effortless money. They have figured out that all profitable traders really do earn their money out of trading forex. There is no easy way to trade, and they also know very well that trading is not for everyone. Trading currencies is not that different to any other kind of financial trading. It comes with risks and rewards that few people can understand and handle well. The reason why the internet is flooded with adverts promising big easy money out of trading, is because adverts are created by marketing specialists. And these specialists know people’s passions and irrational behaviour when it comes to spending money. This doesn’t mean that the actual forex industry is bad, but it simply doesn’t suit all kinds of people. Everybody needs to earn some extra money on the side, and these misleading adverts seem to have the answer for these people. But actually, profitable traders are wise people, who do control their greed. While greed is good, it has to be kept under control when trading, and not let the necessity for earning a second income, take over. Trading decisions are about buying and selling currencies online, on a global market. These decisions, when made by wise traders, are all about the market, and not about boosting their income. All traders, both winning and losing ones, are actually addicted to the market one way or another. Addiction is not necessarily a bad thing, as all professionals, in all kinds of jobs, who love their jobs, are addicted to them.

What is Forex Trading to Determined to Win Traders

To the very determined trader, forex trading is about personal vindication first, and then about money. Except that this trader wants to make serious money. And they know that if one is successful enough so as to make little money on the side, trading each month, then that trading can be safely scaled up for making serious money. So apart from knowing what is forex trading, they also know which promises are realistic and which are not. That is the difference between thinking, rational people, and those who are taken for a ride by ridiculous adverts. And then comes the part of dealing with trading methods, forex signals, and interpreting forex news. The wise trader once again deep down knows. They know that all popular methods do not really work. What does work are peculiar and non popular methods, which sometimes are based on simple currency charts and chart patterns. Finally, there is a misconception about market momentum, so that it seems logical to follow trader recommendations seen in the media. As long as that trader is working for some established investment bank. But even that is the wrong way to trade your own money, because in the long run these recommendations perform badly. The only useful information an investment bank trader can provide is fundamental analysis on the running quarter, but that’s about it. Ordinary traders can often match or exceed the trading skills of many of these investment bank traders. Just remember that trading recommendations seen in the media cannot be dependable for scaled up trading, because even these people use primitive analysis methods, that anyone knows. There is no edge, no advantage over the market.