5 Simple Facts About Forex Trading

By Daniel Murdock

Forex trading is not easy!

With modern-day marketing, brokers make it seem so easy to trade Forex. It is a known fact that only 95% of traders end up being successful and of the 5% that are successful only 2% will be able to make a living trading Forex.

Forex trading robots with demo account testing

There is a big difference between trading a real account and trading a demo account. Most Forex trading robots are sold with fantastic back-testing results but very few have actually ever traded a real account, so take the results from backtests with a pinch of salt when selecting an expert adviser program (EA).

The work ethic philosophy doesn't apply in Forex Trading

The regular work ethic of "if you work hard, you will succeed" does not apply in Forex trading, if you work harder it does not guarantee that you will be more successful. Many successful Forex traders work very few hours of the day, they tend to work smarter rather than harder.

Mathematics and Forex are not related at all

Many mathematicians come up with all sorts of mathematical formulas to assist traders with success; there is no formula for success. You also do not need a mathematical degree to trade the Forex market; some of the most profitable traders are the simplest folk around. Complicated formulas will only confuse you; don't fall into the trap of taking comfort in complication in Forex trading.

Margin Trading will kill your account balance

Trading with more capital than you actually have is called trading with leverage, most brokers offer about 200:1 leverage, you must be careful that you do not trade with leverage that is too high as it will kill your account very quickly. Leverage makes it possible for Forex traders to make large gains from their trades, but the reverse is also true, it creates the risk of making large losses if the trade move against you, so make sure that you always have a stop-loss in place.

A winning mindset is key to achieving

Making sure that you have the confidence to trade is important; try not looking for others advice too much. Trust your system and at all costs, do not deviate from your system. If you in a losing trade, it is not the end of the world, it is statistically proven that you can actually have more losing trades than winning trades and still make a profit, provided that your risk management is correct and you stick to your stop-loss.

Read more on the best Forex Brokers here

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Forex Trading Robots - Why Do They Lose Money Despite the Track Records Being Profitable?

By Sonia Kristina

You will see numerous cheap Forex trading robots and they all claim track records of huge profits but when users trade them they all lose money - so why do they lose? If we look at the track records in more detail, you can see why.

Firs of all, if you really could make a huge income every month and make no effort, the whole world would be trading and no one would bother to work! Naïve and greedy traders really think there on the road to financial freedom by spending a couple of hundred of bucks but they soon get a reality check.

Have you ever seen a cheap Forex trading robot with an audited track record from a reputable source?

I have never seen one and the reason you don't is simple, they have never made the money they claim too, in fact most have never even be traded in real time. They either give you a simulated track record going backwards over past data and bend their system to the data to make a profit or they simply just present figures with no outside check. They present live proof or trading account data but the problem is no one has checked its correct!

I have been trading Forex for 22 years and these cheap get rich quick systems have always been around and they always will be, because there are such a huge amount of people who let their greed get the better of them and buy these trading systems, without thinking about the fact that if making money was so easy, everyone would be trading Forex and no one would bother to work.

If you want to win at Forex trading, you need to make an effort but for the amount of effort you have to make, the rewards can be life changing. If you want to win, do your homework, learn the basics and within a few weeks you could be making great gains trading global currencies from home.

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