Lockdown has a terrible effect on the economy – worldwide. We are paying a huge price for the stupid notion that some jobs and businesses are “essential and others not.” The economy simply does not work like that. The economy is like a very complicated machine. Just imagine somebody randomly decides that a 1st gear in a car is essential, but not the 3rd or 4t gear! Preposterous.
Many people today are having financial problems. Every failed business not only affects the owners and employees of that business, but also the suppliers to that business and people. It is the domino effect.
That leads to me reading that more and more people are looking at Forex Trading as a way to make money. Here I will share a few thoughts.
- Forex Trading is speculation – you buy something in the HOPE that you can sell at a higher price, or sell in the hope that you can buy at a lower price. Another word for speculation is gambling. I am not offended by this, because it keeps me realistic about Forex Trading.
- Statistics show that more than 75% of retail traders lose money. That means that before you jump in, you should be very sure why you will be part of the profitmaking minority.
- Beware of the 3 trades wonders. Forex Trading is a marathon. It is not the 3 lucky trades that count. It is not the one day of profits that count, it is the profits of months and years that count. On a Forum somebody was very excited that he had three profitable trades in a day, which, according to him, proves his strategy works.
- In trading mindset will be your biggest enemy – the enemy is within. Discipline (SELF discipline) is the thing that will determine your success. If sudden wealth exposes character, trading is the best activity to expose all sorts of character flaws. You will have to conquer yourself before you conquer the markets!
- As always, invest in yourself BEFORE you invest your money. Learn and study and practice. The guys at Babypips.com has an excellent free course. Do not pay for any trading course before you have successfully completed the Babypips course. Once you have completed Babypips, you can also do this free course:
Free SIMPLE & EASY FOREX COURSE
This course is also free and will help you understand a few entry and exit strategies.
Before you invest any real money, please trade on a demo account until you are consistently profitable, Any strategy will have losing streaks. You should trade on a demo account so that you know the losing streaks and have the confidence that the strategy WILL be profitable again. Unless you have this confidence, you will start messing with the strategy the moment it starts losing. And then you have lost.