It’s not uncommon where a person who learned currency trading on his own manages to succeed in the industry. In fact, if you are good with numbers, the instinct to spot opportunities and enough guts to either pull out or continue to trade, you are probably going to make good money from the forex market. Some people go the DIY route and learn by reading e-books or watching videos and manage to find success in that method. Some who don’t have the patience nor the confidence to know exactly what they are looking for can opt for personal mentoring for experienced forex brokers.
Can you learn by yourself?
Forex brokers serve as the middle man between the trader and the Interbank. Don’t think of the Interbank as a building you can walk into where you deposit or withdraw money. It’s just a term used to describe the complex system where banks can trade with each other.
However, even beginners can learn currency trading right in their own homes by just allocating a few hours each day. The Internet is full of resource materials and tutorial tips that they can study in order to enhance their knowledge. Forex Explore, for example, provides market analysis, educational materials and tutorials, forex broker reviews as well as comparison of their services. You can certainly learn forex trading all by yourself by spending a few moments of your precious time reading the materials in the site. Or you can find other brokers who will manage your account for you.
Pulling the trigger
Oftentimes, however, it’s not the knowledge that’s the problem. A running joke in the industry is that traders will benefit more hiring psychiatrists than forex brokers as mentors. That’s because when you deal with high stakes, the most difficult part is when to pull the trigger. It takes a lot of confidence of your own abilities as well as the “inability” of other traders to spot the position that you found yourself in.
Trading against others
Unlike playing golf where you are competing against yourself, forex trading is very much a zero-sum market. That means you are trading against other traders. That means you only make money when another trader loses an investment. There’s a vast difference in trading in the short market or if you are in it for the long haul.
Only a small number of forex brokers consistently make money, or can be considered as net positive. Simply put, if there are 10 traders looking at the same forex, you will need to beat nine of them in order to turn a profit. If it’s that difficult, why does it continue to attract traders? It’s because the payout is huge if you manage to understand the nature of the beast.
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