Forex market – a play or permanent work?
Did you know over 80% of online Forex and CFD traders lose their money?
The number isn’t made up by someone, but it is actually the case with majority of online Forex brokers.
European licensed online brokers publish their numbers every few months.
According to their data, we can certainly say that more than 70% to 80% of traders are losing by investing online.
Good news is that there are some brokers with the result of around 50%, and the number of traders losing their money seem to be decreasing over the years.
This may be thanks to developing trading tools and improved educational materials, but still it is true that more traders are losing while less traders are making profits.
While you may consider the numbers as your reference, you can also take this opportunity to think of why and what you are doing in the Forex market.
What are you doing in the market? is the question you should know the answer to
Why do people take up trading and come to Forex?
That is a question frequently asked in forums.
There might be various answers to this question, although in most cases it’s a wish to achieve financial independence and to be self-employed and not to work for the boss.
There are, of course, those who dream about making millions.
Such intentions are undoubtedly great but setting such ambitious goals some people do very little to achieve them.
Every trader can ask himself or herself this question and the answer will probably coincide with the answers of other traders.
But a more interesting question is: What am I doing in the market? Giving a sincere answer, a trader can compare it with one of the answers provided below.
Have time to think and trade
There are a lot of people who really work in the market keeping the situation under control.
However, it does not mean that they spend days and nights at the terminal and follow the price movement.
In fact it’s vice versa, traders have enough time to relax as well. Having a rest is a part of their trading strategy.
Although they almost slave away keeping strictly to all the points of their trading strategy.
It’s significant to point out that they really fulfill all the points of the rules, everything to the minutest detail including trading signals and money management.
As a rule these traders achieve success.
They gradually nurture their will power which contributes to feeling comfortable in the market conditions and finally brings profit.
And time free from trading but nevertheless working time traders spend on improving their trading systems or getting new knowledge.
Exactly for these traders Forex trading turns into work.
And it’s not a simple work but a permanent, hard but favorite work. They are fans of the market because it’s endlessly interesting for them!
The market usually likes educated, calm, hard-working and strong-willed people.
And the market is ready to share its wealth first of all with these people.
Forex market – a play or permanent work
In the first part of the article it was highlighted how necessary it is for every trader to ask himself or herself a question: What am I doing in the market?
After giving a really sincere and honest reply, compare it with one of the variants provided.
The first variant of the trader’s attitude to work in Forex was described before and now we are going to discuss the second one.
Traders working hard 24 hours
There are traders who pretend that they are trading although they can insist on working in Forex market.
The working hours of such traders are chaotic.
They get up and go to bed when they want, they can afford to watch an exciting movie in the break, chat in social networks, in forums or simply play online games at odd times. And this “work” takes all day.
They can indulge themselves during the trading increasing risks.
It might seem to them that the market situation is developing in the way that the trade must be 100% profitable.
In this case they can take risks hoping to make profit right now rather than accumulate missed profit within few weeks.
Such traders treat some points from rules with certain negligence although they are inseparable parts of their trading strategy.
However, it is worth saying that such kind of traders can be in the market for quite a long time.
They usually have trading experience of one-two years but they often consider themselves professionals and even experts in the sphere of trading.
This overestimated approach leads to the situation when they allow themselves to change the system rules in the middle of the trade or completely neglect them.
Traders might believe that they know quite a lot and can feel the market adjusting to its requirements.
They usually prefer to be in the process of trading and feel uncomfortable without an open trade. Probably this attitude to trading occurs as being outside the market they feel that they are wasting time.
That’s why to open a trade at the first opportunity is a common situation for these people.
As a rule such trades end up quite sadly. After wasting plenty of time and possible several big profits, traders inevitably reach the state when they get a Margin Call and finally lose their funds.
Exactly about these traders it is said they play in Forex market.
Having discussed both variants characterizing this or that type of traders, every trader can look at himself or herself from the outside and realize what type they belong to.
If it turns out that the answer is the second one and most of the enumerated features coincide with your type of trading, then it is necessary to change something.
It might be recommended to try to organize yourself both in trading and on vocation, do everything possible so that the attitude to trading will comply with the first variant.
Only in this case one may say that Forex market is a full-time job but not a play.