Why is it said that 9 out of 10 people lose money trading at home in the Foreign Exchange market.?
I am interested in trading from home. Can anyone recommend a good training package as I have no experience yet
Answers:
Forex is a fairly specialist field and the volatility of the marker place makes it hard to earn money, to be fair though it's mainly institutions that play this game. As an individual most of your gains would be wiped out by transaction fees.
its been said,
to learn to trade, start doing it,
WITH NO MONEY invested.
track your stock picks for a year. learn what happens, how it happens, why it happens, track your changes, profits, losses, splits, etc.
DIVERSIFY.
track at least 2 companies of 5 DIFFERENT types of stock
2 oil or gas
2 food
2 petrochem
2 technology
2 auto
2 service related
2 shopping center types
and so on.
track them for a year, with what you would have invested.
see what happens. then you will have a GREAT understanding of how it all works and whether you still think you can make money at it.
Trading in foreign exchanges is difficult to begin with. Day trading is even more difficult. That 90% figure is most likely derived from the fact that foreign exchange trading is a game of pennies, and most people trading from home probably aren't working with enough money in the markets to offset the transaction costs.
www.fxcmtr.com has an education section where I believe you can play with a $50,000 demo account to learn the ropes a little. That might be a good place to start, but I must caution that just like the stock market and commodities, you really need money (a good deal of extra cash) to make money.
Because, unless you know what you are doing you can lose it all in a day. You have to really research what you are doing and be careful using stop losses in case a currency does a 180. Don't invest in something you don't understand. I tried it out with $250 and lost all but 22 cents in the course of a few months. Now I'm smarter and it is just a game as I try to rebuild that 22 cents into a dollar.
There are a few reasons. Most of the brokers that you have to go to charge high transaction fees. If you're doing any short of semi-high frequency trading, then those fees will add up and most likely eat up all of your profits. It's a zero sum game with your broker for a lot of those bucket shops who have to take the opposite side of your trade. If you make money, he loses money and vice versa, so it's in their best interests for you to lose money and that is what happens on the whole.
They let you gave massive margin so that you lose money even faster. If you're really interested, set up a demo account with one of the main brokers and play around with different "strategies" so you get a feel for the market and can make a better decision based on your personal skills.
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Answers:
Forex is a fairly specialist field and the volatility of the marker place makes it hard to earn money, to be fair though it's mainly institutions that play this game. As an individual most of your gains would be wiped out by transaction fees.
its been said,
to learn to trade, start doing it,
WITH NO MONEY invested.
track your stock picks for a year. learn what happens, how it happens, why it happens, track your changes, profits, losses, splits, etc.
DIVERSIFY.
track at least 2 companies of 5 DIFFERENT types of stock
2 oil or gas
2 food
2 petrochem
2 technology
2 auto
2 service related
2 shopping center types
and so on.
track them for a year, with what you would have invested.
see what happens. then you will have a GREAT understanding of how it all works and whether you still think you can make money at it.
Trading in foreign exchanges is difficult to begin with. Day trading is even more difficult. That 90% figure is most likely derived from the fact that foreign exchange trading is a game of pennies, and most people trading from home probably aren't working with enough money in the markets to offset the transaction costs.
www.fxcmtr.com has an education section where I believe you can play with a $50,000 demo account to learn the ropes a little. That might be a good place to start, but I must caution that just like the stock market and commodities, you really need money (a good deal of extra cash) to make money.
Because, unless you know what you are doing you can lose it all in a day. You have to really research what you are doing and be careful using stop losses in case a currency does a 180. Don't invest in something you don't understand. I tried it out with $250 and lost all but 22 cents in the course of a few months. Now I'm smarter and it is just a game as I try to rebuild that 22 cents into a dollar.
There are a few reasons. Most of the brokers that you have to go to charge high transaction fees. If you're doing any short of semi-high frequency trading, then those fees will add up and most likely eat up all of your profits. It's a zero sum game with your broker for a lot of those bucket shops who have to take the opposite side of your trade. If you make money, he loses money and vice versa, so it's in their best interests for you to lose money and that is what happens on the whole.
They let you gave massive margin so that you lose money even faster. If you're really interested, set up a demo account with one of the main brokers and play around with different "strategies" so you get a feel for the market and can make a better decision based on your personal skills.
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