Can Forex Trading Really Make Profit?
Many novice forex traders start with enthusiasm, lure stories about big profits and income like self-employed, financially free and lifestyle. In fact the illustrations of stories and media about the lives of true traders are only a distant possibility for beginner traders. Many are losing some or all of their initial investment and are experiencing success in a short time and suffering losses in a longer time. So you can avoid it all or at least not so bad then you must have the commitment to learn forex science.
At the beginning, you should start by trying the forex demo account provided by the forex broker you choose. Almost all eligible brokers will offer free demo demo accounts without obligations using MT4 or other platforms and simulate real trading market prices from good forex pairs. There is no rule how long a beginner trader should practice trading a demo account. It may take several weeks before you feel confident to enter the market in real terms.
In addition to practicing trading on the platform and finding a good trading system, money management is the most fundamental element in trading success. Considering the fact that all traders will surely incur losses on some trading during their trading career. So the ability to control the financial risks of each trading position will be crucial for the survival of any new trader.
It is important to stress that even the world’s best trading strategies will fail over time if the basic money management is not followed. This includes the use of a reasonable stop loss to prevent price fluctuations and maintain a maximum risk exposure of 3% of the value of the account at each trading position. In addition, ensuring that every forex trading has a positive RRR, for example ensuring that the target profit on one successful trading will always be at least equal to one unsuccessful trading.
Next is to understand the market price movements of forex. Yes, by understanding what drives the market then you can know the trend of price movement in the future.
Forex can make a profit or not is dependent on the ability and willingness of the trader itself.