Forex trading seems to be the greatest thing these days. That is how media, television and the internet wants us to see it. Before I sound like a forex trading pessimist, let us do some myth busting.
When we think of income opportunities, many of us would think of selling Avon, Tupperware or perhaps Amway. Each of these, if I am not mistaken, requires minimum investment and has tangible products to sell. I am not saying that an income opportunity cannot be service-oriented. Well, these are just examples.
You may ask, how did forex come to be thought as an income opportunity? Is it because of the fact that one can start trading forex with as little as $25? This amount is something anyone can afford. The fact that entering forex does not cost too much has a lot to do with the appeal it is enjoying at the moment.
Everywhere we look, it seems like more and more people are getting rich and getting financial freedom simply through forex trading. Does this really happen to some people? The fact is that it really does as some people really do well in forex trading. But one should not view it simply as an income opportunity. This usually drives beginner traders to believe that they can simply place their hard earned money to it and become successful instantly.
One needs to realize that forex trading is speculation and speculation as defined by Merriam-Webster is the assumption of unusual business risks in hopes of commensurate return. You can see the keyword “unusual” here. And in global financial market speculation, the word “unusual” is translated as “high”. Whatever way you slice it, this means that forex trading is a high-risk venture. This is the reason why we see a huge number of individuals who enter into forex trading who lost.
So one needs to expect forex trading as a high risk venture. If you are trading without proper knowledge and training, you’re not only at high risk but it would also be impossible for you to make some money trading.
I hope by now your expectation about forex trading has already been adjusted. It is normal to feel a bit scared about forex trading. This is actually a good thing because it simply means that you’re not prepared for the risks and you have two options – either to prepare yourself or to quit trading. If you choose the first option, then it’s time for you to learn to trade. Once you decided to learn trading, you are increasing your probability of success. The key is to prepare yourself more.
Once that you are ready to trade forex, it is now time to look for a forex trading platform. CMC Markets is a great forex trading platform that provides access to the world’s financial markets.