forex charting

Posts Tagged ‘Forex aptitude’

Currency Trading. Do you have what it takes?

Someone asked…

Is making money in the forex spot markets possible for a person who doesnt know much about finance? But that person is willing to learn all there is, but can you learn enough to make good money in the forex markets with the general studying materials available such as courses books seminars?

My personal answer:

I think the fact that you are asking the question, says a lot.

Anything is possible if you want it badly enough, but firstly I think you need to look at the different styles of currency trading.

I don’t believe you can trade long, with your level of experience and funding. I mean not for several years.

You may be able to trade short, and you can prove that to yourself by opening a DEMO Forex account at your preferred Forex broker. I think you will need to do this for more than 1 month, as you need to live through market crashes, and these usually happen within 3 month periods.You need to see how you will cope and what strategy you will deploy, as you will probably be under funded for this.

Wild dips in currency trading are unavoidable. It only takes the most bizarre news story to send the market in to panic, sometimes for days.

You will need to learn a lot about the financial market to get anywhere near the 80% win rate you will need. 99% of private traders lose all of their money more than once. I’ve lost all my money 3 times. Are you ready for that with your own cash? So you need to set yourself a budget and stick to it!

First thing you need to do is make yourself a calendar of each market you will address, financial dates. i.e. when budgets and reports are announced. This is fundamental in trading.

The news media is something you can’t really plan for, which is why I beg you to demo trade for 1~3 months, as it was your own money. Only then will you start to see, if you have what it takes.

And it takes a LOT more than financial markets nouse. It takes nerves of steal and a scientific approach.

Are you a logical person? You’ve already asked if you can make money when you know little about what you are investing in

I appreciate you mean IF you dedicate yourself to learning the craft.
Well if you have a aptitude for trading, then there are jobs where they might train you further, and then it isn’t your own money you are risking.

Overall, it is great fun, and one has potential to earn large. But you MUST set yourself a budget you can afford to lose, and you must practice on a demo account, before you even think about trading cold hard cash, especially your own.

See my longer answer in the Forex trading TRAINING section.
Happy and SAFE trading

Forex Pete