I somehow missed the “Protect yourself before you reck yourself” part of PRE-School:Forex Basics before and I just read it. I find it a realistic but very demotivating part
For example:
You should have at least $10,000 of trading capital (in a mini account) that you [B]can afford[/B] to lose.
as if $10,000 is nothing!
Ninety percent of traders lose money
This is insane. So only for example 100 out of a 1000 people make money.
That’s worse than gambling.
Babypips says because of poor training, lack of planning and money managment, but I can’t believe there are so many people that fail for all of this.
I’m 18 and currently have about $15,000 in a savings account, which I never needed to use and I’m willing to invest half of it for Forex after months of training and learning of course, but is it really worth the risk ?
[B]BTW:[/B]
I noticed that the PRE-School test is a lot harder than the others I’m in the 8th grade right now and I actually failed it (first time:eek: ) which means I need to re-do & study that part a lot better.
But seriously…is the first test more difficult or is it just me??
Oh yeah I tested a demo account with MetaTrader 4 and started with $5000 and I’m up $103.87 within 1 hour…didn’t lose ones with 5 orders. It’s probably beginners luck but still very cool:p . but I did make a mistake and closed 2 orders even so zero profit/zero loss, but that was an accident)
Um, 90 out of 1000 is 9%. Close, but not quite. And I agree… it is unbelievable what kind of things people will fall for. Wasn’t it P.T. Barnum that said there’s a sucker born every minute? People are incredibly defective, especially when it comes to money.
From all accounts I hear, the people who lose their capital in the foreign exchange are the ones who did not bother learning to manage their money. They failed to balance the risk versus the rewards. They probably tried to get rich quick, and thus lost their money. I understand that it is possible to get rich quick through slick trading, but as you stated, this isn’t properly called trading. It’s called GAMBLING.
You’ve got the right idea practicing with a demo account. Pay particular attention to the money management lessons in the pip school. Keep trading with the practice account. DO NOT trade with your real money until you can confidently and consistently (read: predictably) make money with your demo account. Making quick profits is fun, but does not prove that you can repeat the process in any and all market conditions. Only time and patience will prove that.
yes, 90% lose, but that means 1 in 10 make it. Plus, think about how many quit in the beginning. Also, for careers in general, that isn’t bad, considering trying to get many jobs that have low expectantcy.(except of course the army, but I’d rather not jump on that boat.)
Constantjin, our purpose isn’t to demotivate you, but to provide you with realistic expectations. A surgeon doesn’t read for a week then go out and start performing operations. An extreme example, yes, but just like with learning anything new, it takes times and hard work to become proficient. We’re just trying to offset the other sites that promise fortunes galore instantly and they make it so believable. Don’t believe the hype. That’s all we’re saying.
You don’t need to risk all your savings. After demo trading for a couple months, if you still want to try it with real money, open a micro account with a mere grand. If you adhere to strict money management rules and use good risk control, this amount should last long enough for you to decide whether trading currencies is right for you or not. Good luck!
Yeah I totally understand what you’re saying.
It just shocked me that 90% loses, but I know that it was said to wake up the people that think that Forex trading is a easy thing to do. That part just slammes reality right in your face (which is a good thing).
When I start with a Live account I am going to follow babypips advice and start with a micro + $1000 and hope I don’t make mistakes and become one of the failures.
But so far I have a good feeling about Forex and it’s really interesting.
This is by the way a really great site, I really like the way it’s constructed into a kind of school thing with tests and all which keep the motivation up.
As far as whether or not it’s really worth it, that will have to be something you decide for yourself. Can you put the time in to make it worthwhile and learn how to manage that risk? After doing so, will you get what you want out of it?
I think it’ll be worth it for me. I can’t answer that for you.
