• Wednesday, April 24, 2024
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Why forex trading is not a get rich quick scheme

Forex Portal Academy to upskill 1m African youths in financial trading

The real question for individual forex traders is whether forex trading is worth it. It’s like asking if it’s worth being a doctor or an engineer.

Websites of reputable forex brokers may display warnings that a high percentage of people are losing money. Many people make this mistake because they don’t do their homework and don’t spend enough time acquiring financial knowledge to gain enough experience.

80 percent of day traders give up within the first two years. Nearly 40 percent of all day traders engage in day trading for just one month. Only 13 percent of traders still engage in day trading after three years. There are barely 7 percent left after five years. Day traders who have demonstrated success in the past typically experience great future returns.

Only 1.6 percent of all traders are profitable day traders on any given year on average. These day traders, who make up 12 percent of total day trading activity, are quite active though.

The fact that you are reading this indicates that you have done at least a little research and you are on the right track.

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If you can learn how to do it and you show high interest on it, then forex, like any other way to make money, is worth it. Trading forex is a rewarding and challenging profession that requires skill, knowledge, and discipline

The key is to view foreign exchange trading as a consistent long-term investment activity, not as a one-time get-rich-quick scheme. The latter is the root of those who think Forex isn’t worth trading.

Brokers like Exness should have no trouble providing you with a demo account or trial period at no cost to you. Allowing you to select the type of account that best meets your demands is a desirable quality in a forex broker because you are the client and the broker makes some money off you.

Conducting online transactions to offer unique experiences that earn extra income is very difficult. Even if you don’t get as much income as you’d like, it can help you better understand the economic impact of current events. And this is important knowledge that can elevate your position today.

But to succeed, you need to read a lot of economic, financial, and political news from around the world to get a better understanding of how and why markets work.

Success in forex trading requires real skill, knowledge, and discipline. The key to becoming a competent and profitable forex trader is perseverance and a realistic mindset. Rather than looking for overnight success or infallibility, focus on developing these qualities and habits.

How much can you earn?

To decide if something is worth it, you must realistically assess the benefits.

How much profit you make depends on several personal factors, such as B. What forex strategy do you use, what kind of trading do you do, how often do you trade, what kind of trading psychology do you have, your risk management discipline and ability, etc?

Look, forex is not something that can be started suddenly.

Nevertheless, it is possible to achieve relatively high returns on investments (compared to safer standard investments such as index mutual funds, for example). However, the higher the return, the less likely you are to achieve it.

What to expect

For reference, the average return on investment (i.e., half of Forex traders are above this amount and half are below this amount) is around 10 percent per month.

This means that if he has $10,000 in his account, he averages about $1,000 a month. Of course, this is just an approximation, and how much you can earn depends on your choices. And almost all of these forex traders took at least a few years to get enough experience to reach that level.

Like anything else, FX takes practice to get better. And it will be very rewarding for those who like it.

Adesina, a France-born Nigerian, is a Certified Investment Trader, with more than a decade of working expertise in Investment Trading.