I’m sorry, but I thought we were permitted to share our opinion on this site. Are you the comment police?
You don’t like the term “think tank”? Was I not allowed to use a term other than Bank? It was being facetious. Like using the term intelligence committee.
Banks give price targets. Stocks have goals they want to reach and it appears much of the function is the result of a Capitalist influence. Forex has politicians and money is not earned, it is taken.
Praytell, what does supply and demand have to do with the Swiss manipulating their currency? Where does the supply and demand come into play with manipulation? Pound for pound, they are different birds.
Nobody said the Stocks are not effected by outside sources/influences. If you want to write an article on your displeasure of the Federal Reserve, maybe Ron Paul would be happy. But that is not my issue. The issue is comparing Stocks to Forex Pairs.
I personally do not get stopped out with Stocks as I do Forex. That is a valid statement that can be made by many. I can rest easy at night on buying MANY stocks w/o worrying they will be stopped out as Forex is stopped out, continuously and consistently. Stocks have fundamentals that cannot be compared to Forex.
I guess my post was an invitation for you to be critical of my experiences? Well good for you. I hope you increased your popularity by pouncing on the experiences of another. Have you thought about working for Twitter? You seem to have their controlling personality.
The post was about “why Forex trading is so hard.” I simply wanted to give my two cents.
Even though I haven’t gotten it yet, I do believe that it’s not as difficult as it looks. I was advised, last year, to “eat the elephant one bite at a time.” Therefore i do know that it’s not like I am studying for the CPA exam w/ a set deadline in place to take it. I realize that I have the time to learn.
The problem is that people are expecting quick gain and want to make the money most out of it without taking into consideration of how it can be dangerous. People wants to make easy money and are just looking for quick shortcut, because let’s be real, we have a short attention span where if there is no proper effort in that, we tend to give up on that and move on to the next thing.
There are many reason why trading is so hard. Everyone is unique, thus the reason are different for everybody. Nevertheless, there are 3 PRIME reason imho, and this is what i think.
ACCURATE knowledge of how forex trading REALLY works. In currency exchange, we are speculating on the appreciation and depreciation of one currency vs another. How to do that one might ask? Is it like stocks, where we just read up on the company and evaluate the future potential growth that a company might bring?
In Forex, the limelight is on the Major economies of the world. Do we just google the word ’ economy of country X & Y ’ and make our wager. Not so simple, there are mainly 8 major currencies, which we need to do a HOLISTIC appraisal with.
Technical analysis, no doubt are the sustenance of trading. However, without the bird’s eye view of the money FLOW among the major economies. We are mere short sighted individuals in the sea of penguins.
LEVERAGE is like a double-edged sword. In Forex trading, we are offered the ALLURING potential of meteoric returns in the BLINK of an eye. And that sows the seed of GREED in our heart. Which will bring eventual downfall of the EUPHORIC Alexander the Great.
Last but not least, " RICH people do not JAYWALK " . Most people who comes into Forex trading are people who wants to improve their financial status and living environment. They may not have much to begin with. The promises of getting rich quick in Forex blinded their common sense. Many trader fail because they may be in a DESPERATE financial cash flow circumstances and GAMBLING with money they cannot afford to lose. Imagine HOLDEM, you are committed to the pot on the ‘TURN’ , it is almost a call on the river regardless what comes. In a nutshell, DESPERADO makes bad decision when it comes to financial wager.
Not just a little knowledge but a lot of knowledge. Learning is something which must be ongoing in forex along with practice then only you’ll see good results. Else, disappointment.
There are two ways of approaching this question. The answers lies in what the non-forex traders think and what the Forex traders do.
Firstly, what do the non-forex traders think? They feel we risk 30-80 percentage of our capital and that alone is risky so they term forex trading as a risky business. Tell them you risk 0.5%-1% of your capital and see how their thought process towards trading will change automatically.
Secondly, what do forex traders do? I will answer this using the principle of backward law. It’s a well known saying that if you always expect a positive outcome then you actually have a negative thought process. If you are aware and ready for any negative feedback loop then you have a positive thought process. How does this applies to Forex traders? Forex traders find it difficult to accept losses and this leads to ‘trade block’ which is the inability to take a trade due to previous losses. One thing leads to another and they give up trading.
Trading isn’t hard. The inability to control your greed by sticking with the 0.5-1 max 2 percentage risk is what is difficult. Coupled with the inability to psychologically accept losses.
The Forex market depends on mentality. If you work with a positive mindset, trading will be much easier for you. And if you think trading is very hard, then it is very difficult for you.
You get results just like the way you look at forex trading. Therefore, trading should be done to keep the mindset right. Trading is very difficult but money management and risk management can make trading easier.
Forex trading is difficult if one only aims is to make money quickly. With this kind of mindset you will set yourself up for failure. On the other hand, forex trading is easy, if you are willing to devote the time and efforts into becoming a successful trader.
Forex trading is hard for those who do not have knowledge about trading. If you have a deep understanding of how this market works, it will never be hard for you.
Trading is hard because the market is very unpredictable but with proper knowledge and enough skills it becomes easy for you. Practice on a demo account regularly and be consistent.
Like playing Poker, Forex is extremely competitive. That means you can’t trust anyone including your Forex instructor. Most Forex instructors will teach you everything you need to know except strategy and technical indicators. There’s a lot of deception going on and you need technical indicators that can see through that deception. Also, most technical indicators are not consistently accurate, there’s a few that are.
Trading (forex but also commodities) is insanely difficult because the market is almost efficient.
Short term price movements are 99%+ random .
99% of traders think to have an edge but they are experiencing a lucky streak of 3-18 months.
Once they are back to 0 they stop trading.
This is the reasen people don’t share a trackrecord or run Trading Journal for a timespan shorter than 2 years.
Forex trading is risky so we need to understand this and try to minimize the risks present in our trading. If we can do this then we would be able to get the Profits.
