The foreign currency trading market, or forex, is the largest market in the world. Many traders believe that they must have the top forex trading course in order to make money in the market. There is a huge industry that has developed in order to "teach" people how to trade this market.
Just because there is a course available does not mean that this course will teach you how to trade the forex profitably. Unfortunately, people are paying thousands of dollars for seminars, courses, and hundreds signals or trades each month and not learning how to profit in this market.
The agency that is the guardian of the forex market, the CFTC, requires that anyone who produces a product on trading the forex, place a disclaimer that the forex is risky and promises of profits are unsubstantiated.
Over 95% of first-time forex traders lose their account because they are not ready to trade. The good news is that you can open up a free trading account and practice before you invest your money.
It is recommended that the beginning trader start with an inexpensive forex e-book and test out the trading methods from the book in their practice demo account before trying the trading method in a live account.
Another way to test the particular forex method recommended is to backtest it. You can kill two birds with one stone by going here to sign up for a free demo account and get access to a good set of free charts: http://www.cbfx.com/charts/chartsDemo.htm
You can also trade by receiving forex trades by e-mail. Signal companies charge hundreds monthly for these, but there are free forex signals that can make you money. Again, trade these signals in your demo account before you invest your money. Wealth System Solutions has discovered an inexpensive, profitable signal company whose signals can be auto-traded.
Will you make money every month? This is one of the biggest misconceptions about the forex market that people make. Making money in the forex is not linear. A forex course will make money for you almost every month and in the long run, will give you profits. Many new traders jump from system to system because they lose money one month only to find that the next trading system makes them money, but not every month. The exponential power of the forex will make you money like no other investment. The more money you earn, the more money you will make.
When you are ready to begin trading forex in a live account, many brokers will tell you that you can begin in a mini account for only $250. While it is true that you can open a forex account with that amount of money, it really does not give you the leverage to see your trade move up and down and give you profit. I recommend you start trading in a mini account with at least a thousand dollars. If you wish to open a standard account, it is suggested that you begin with at least ten thousand dollars to minimize your risk. In fact, our forex broker recommends that we deposit at least $2,500 in a mini account or $25,000 in a standard account for our auto-trading system.
In summary, look for a forex e-book that is under a hundred dollars. Trade the forex system in your free forex demo account. Backtest it with your free forex charts moving back in time with the charts to see how the trade holds up. Begin with a mini account and watch your forex account grow from there. Don't be discouraged and discard your forex trading system because you have one month where you don't profit. Do rethink your forex system if it does not give you profits over the long run.
A bank offered me 2.9% if I deposited $50,000 with them. See why I am laughing all the way to the bank earning a net monthly average of 8.4% using a simple autotrading system. Brian Sater is a forex consultant and owner of Wealth System Solutions. [http://www.wealthsystemsolutions.com]
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