Is Forex Trading Difficult? Read This Before You Start With Forex

Trading should appear simple from the outside. You only have three options: purchase, sell or do nothing.

That means that every time you act, you have a 50% chance of being correct. On paper, the chances appear to be in your favour.

Possibly it’s because of the deceit that it’s so difficult. The market deceives you into thinking it’s simple when it’s actually quite difficult. You may be wondering why you should read about this. How is reading about the difficulties of trading going to make it easier?

This is the bottom line… The more you know about what’s preventing you from reaching your trading goals, the simpler the process gets.

You’ll also be able to reach your objectives far more quickly. Who wouldn’t want something like that?

In this article, I’ll explain why I believe trading is so difficult. You’ll have a better grasp of why you’ve been struggling and what you can do about it once you’ve finished reading.

Not enough education

Degrees are irrelevant in this industry. I’m here to inform you that having a Bachelor’s, Master’s, or even a PhD won’t help you much as a Forex trader.

Although society may regard you as an educated individual, the market does not.

Experience is the best teacher in the Forex world. Forex trading strategies are all about experience. There are no books or lessons that can teach you how to consistently make money.

Of course, books like Market Wizards can teach you a lot. On this and other websites, you can study and learn about various candlestick and chart patterns.

Experience, on the other hand, cannot be replaced. While this is true in every job, I believe the market is your teacher in trading.

So, what’s the most effective approach to learning to trade?

Journaling. Keeping a trading notebook is an excellent approach to learning about the Forex market.

Keep track of your daily observations in the journal. Did the market follow your marked support or resistance levels? Did it produce a buy or sell signal if so? Should your level be repositioned or perhaps eliminated if it isn’t?

You get my point. You unconsciously teach your subconscious by recording your observations every day.

You will be able to spot patterns with little effort after a few months of doing this. Your mind will access its library of chart patterns and recognize them for you the instant you open a chart.

You don’t follow rules because you have no boss

Most of you are presumably employed. You probably have a boss whether you work behind a desk, walk around all day servicing customers, or work beneath the hood of a car.

You might even have several bosses. When you have two or three people instructing you what to do, why have just one?

So, how does Forex trading compare? Do you report to a single or several bosses? Do you need to get permission to increase your leverage or deposit money into your account?

Unless you work for a brokerage business, the answer is no to every inquiry.

But here’s the thing…

All the more reason for you to create a set of guidelines to follow. The Forex market’s absence of rules pushes you to make incorrect decisions.

To summarize, most people require rules and a method to follow in order to succeed. Whether you’re trading Forex, writing a novel, or training for a triathlon, this is true.

Take a peek around this page if you’re unsure what some of your guidelines should be. Every lesson and article contains a wealth of information that you may use to create your own trading strategy and set of rules.

People don’t like uncertainties

I’ve never encountered somebody who didn’t want to be in charge of their surroundings. Having control is preferable, whether it’s picking where to eat dinner or how much to spend on your future home.

You have no influence over the market. You have no control over how much the EURUSD will fall, and you have no control over whether the AUDUSD will rise or fall from its current level.

Accepting unpredictability is one of the most essential lessons I’ve learnt throughout the years. Markets will always have a degree of randomness, whether we like it or not.

That is why it is critical to plan for every possible scenario. Even the best trade setups are subject to failure. It is your responsibility to be ready.

You need a lot of patience 

It also happens to be a very effective and profitable trait for a trader.

The problem is that the majority of people are impatient. People dislike waiting, whether it’s in line at the checkout counter or for a product to come.

The irony is that excellent trading is built on patience.

In fact, you’re doing something wrong if you don’t spend the majority of your time sitting and waiting. That “something” is most likely losing money on bad trading setups.

Let’s take a step back and tie everything together.

Nobody can deny that the majority of people lack patience. In my experience, not all, but certainly the majority.

Likewise, the majority of traders lose money. Not all, but the majority.

Is this really a coincidence, or is there more to it?

I can assure you that it is not a coincidence after more than a decade of experience. Most people lack patience, and most traders lose money.

So, what’s the answer?

Of course, when trading, have greater patience. But isn’t that easier said than done? There would be a lot more profitable retail traders in the world if everyone could just “have more patience.”

Important Pointers to Know When Trading Forex

To become and remain a successful trader, every trader, whether new or seasoned, should follow the Forex basic guidelines. The following checklist goes through the most critical rules.

Use demo accounts to practice

Always begin with paper money accounts, sometimes known as demo accounts. Many brokers provide free sample accounts to anyone, with no investment or commitment required. A demo can be used to test tactics, comprehend market synergy, and simply familiarize yourself with your trading software. Never invest real money in a Forex robot without first testing it on a demo account.

Maintain your trading strategy

Make a trading strategy and stick to it. Entry and exit points, risk-reward calculations, and an emergency door to close the transaction if the market swings against you should all be included in any trading plan. As a result, every trade should have an entry point, profit taking levels/exit strategy, and a hard stop loss.

Select the best broker for you

Choose your broker carefully and remember not to adjust to them. The Forex broker should adjust to your needs. There are hundreds of brokers available, so choose one that best suits your needs.

Trading fees, low latency, efficient deposit and withdrawal processes, a reliable platform, and solid regulation are all important considerations for your new broker shortlist.

Risk-to-reward proportion

Every trade should have a reasonable risk/reward ratio. According to some experts, a good position gives at least three pips of potential profit for each one you risk. Under no circumstances should you risk more than 10% of your portfolio in a single trade, as evidenced by the Kelly criteria’s most aggressive formulation for the most profitable theoretical position sizing. Most traders maintain their position sizes around 2%, and more cautious traders keep them at 0.25 per cent or even lower.

Emotional management

In the same way, that location is important in real estate, psychology is also important in Forex. For profitable Forex trading, a healthy mentality and emotional control are essential. Cut your losses as soon as possible and keep your profitable winning trades running as long as they display positive momentum. The easiest method to do so is to stick to a sound trading strategy.

Is Forex Trading Difficult or Simple?

This is a personal question that only you can answer. The answer is directly tied to your personality type. If you are a patient, calm, and analytical person who can spend a lot of time thinking on your own without becoming overly excited or depressed by good or bad luck, forex trading will be simple for you. The further you go from this temperamental and skill-based approach, the more difficult it will be to succeed as a Forex trader.

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