Top 10 Truths About Forex Trading

Today I want to discuss 10 home truths about forex trading that all aspiring traders should be aware of when entering the forex industry. This is not intended to put people off forex trading because it can be a very rewarding career and you can make some great profits working from home, as I have hopefully demonstrated in my weekly trading updates for the last few years. I simply want to show you how difficult it can be to start making consistent profits.
Okay so here are the 10 home truths based on my own personal experience:
1. Forex trading is not a get rich scheme.
Many people become interested in forex trading because they think they can get rich in a short space of time. However while it is possible in theory if you use a lot of leverage, a more realistic goal is to build wealth slowly over long periods of time because this is a much more achievable goal.
2. Forex robots are not going to make you rich.
Forex robots are everywhere these days, but the truth is that most of them are not that reliable. While they may have hugely impressive results according to back-testing data, they rarely deliver the same kind of profits once you actually start using them yourself.
3. Most forex products sold online are completely useless.
I rarely promote any forex products any more because it's very rare that I come across any decent ones that are worth promoting. Sadly most of them are a complete waste of time.
4. Only a small minority of currency traders are actually profitable.
It is estimated that only 5% of traders actually make money, although figures from brokers show that this figure is slightly higher than this. Anyway the point is that most currency traders eventually end up losing money in the long run.
5. You may not have the discipline needed to succeed.
It is a fact of life that not everyone is cut out to be a profitable forex trader. To be consistently profitable requires a great deal of discipline, and some people just do not have this level of discipline.
6. Working hard does not guarantee success.
In many walks of life you will enjoy a long and fruitful career if you knuckle down and work hard. However in forex trading this is no guarantee of success. You could study charts for 12 hours a day every day for years and years and still not come up with a profitable trading system, whilst other people may develop their own winning system after just a few days or weeks.
7. Being intelligent is not an advantage.
In many ways the fact that forex trading does not require immense brain power is a good thing. A little knowledge of maths is always helpful when placing trades, but it is possible for anyone to become successful trading currencies.
8. Forex trading is a lonely profession.
Working from home staring at a computer screen all day is not many people's idea of fun, and unfortunately you cannot get away from the fact that this can be a very lonely profession at times. That's why it's important you lead an active social life because otherwise you may well go mad.
9. Profitable systems may not remain profitable forever.
A lot of people get excited when they finally manage to develop a profitable trading system. However market conditions can change and there is no guarantee that your system will still be making consistent profits in the coming months and years. So you need to be adaptable and ready to adjust your system accordingly.
10. Even the most profitable traders go through bad patches.
There are some very talented traders out there, but everyone goes through bad patches at times. You simply have to accept these losing periods as part of the job. As long as your system is still making money overall, you have nothing to worry about.