Make Money in Forex - Is it Really Possible?

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With all the interest these days in Forex trading I'm constantly being asked if it's really possible to make money in Forex. It's a very important question and the first one to be answered by anyone who's seriously interested in trading foreign currencies.

The quick answer is yes, but there are some very important caveats. While it's possible for some people to be make money in Forex trading, many will ultimately fail, often because they don't understand the factors that affect success of failure. Here are the five most important factors that work in your favor, and five that work against you:

You can make money in Forex because

  • The Forex market is huge. Trillions of dollars are exchanged every trading day. With so much money flying around, there are an enormous amount of possibilities for profit.
  • Lots of price movement. Money can be made only when prices move up or down. In the Forex market, vertical price changes are common and substantial. Some stocks sit flat for long periods, but currencies are changing all the time.
  • Lots of liquidity. With trillions of dollars and millions of traders trading it's usually very easy to get your orders filled. Very large orders may be trickier, but most retail traders get their orders within seconds when trading the major currency pairs.
  • Many retail brokers available. It's becoming easier every day to find a broker with terms that fit your needs and who is happy to place trades for small retail traders like us. Careful selection is required, but the market is wide open. Many traders actually trade several brokers simultaneously.
  • Forex is very trendy. Forgive the pun; what I mean is that Forex markets often move in strong trending patterns. These patterns give many options for determining the likely future movements of prices, and even simple trendlines can be very effective.

    • You can lose money in Forex because

  • Forex can be difficult to predict. Despite the strong trends, Forex can be volatile and unstable. While there are definitely patterns they change often and rapidly. What worked last month may be a real loser this month.
  • Forex is sensitive to news. Global currency exchange is naturally affected by global news, and with many traders obsessing over the latest news stories, the market's reactions to them are often dramatic and irrational. News turns logic on its ear in the Forex world.
  • Untrustworthy brokers. Sadly, though there are many brokers available, they cannot all be trusted. Regulation in the Forex market is spotty at best, and this makes for a great deal of fraud and unethical practices. Do your homework before choosing a broker.
  • Traders are humans with emotions. The Forex market is totally unemotional, but people are not. We must learn to conquer our fear, greed and impatience. These emotions are a strong barrier to success, because they make us trade irrationally.
  • Forex is a zero sum game. Simply put, this means that for every dollar gained by one trader, a dollar is lost by another one. As a trader you will lose money quite often. The key is to gain more overall than you lose.

These are the fundamental factors that are in play when trading foreign currencies. If you are determined to make money in Forex, you will need to understand these factors well. Use the positive ones to your best advantage, and try to minimize the effects of the negative ones. It's not easy and it's not quick, but it is definitely possible.

 

Forex is NOT a zero sum game. There are sreads or commissions + swaps

 

It looks like a classical spamm - the question is repeated so many times that by now only spammers are using it

 

Sure it is possible. Create a system that fits for you. Follow your trading rules and use a good management.

 

This looks like a classic spammer - Now the question is, if you use only spam is repeated several times

 
Yes, people are making money. Now, how they are making it is a big story. How much time you invest is irrelevant. What matters is how successfully you can predict price movements. Thats all into it.
 
insa80:
Yes, people are making money. Now, how they are making it is a big story. How much time you invest is irrelevant. What matters is how successfully you can predict price movements. Thats all into it.

Nobody can predict the price movement

You can estimate the price movement

 

i think is possible,but i don't know how to do

ps:first time join forex

 

It is possible to make money in anything. The problem is how

 

It's definitely possible if you can find a real trader to mentor you but sometimes hard to get successful traders to mentor. They're too busy making money.

 

There are no mentors. There are sellers and buyers

If a trader is successful why should he mentor? Personal friendship does not exist on the net where "mentoring" is offered

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