Today we have a very good question from one of our fellow readers of this blog. In fact, this is a question that I personally has asked before when I first started trading a few years back.
Below is the question:
I am unable make any profit. I always make losing trade more than winning. What do u say about Forex? Can anyone really makes money. Give me a honest answer pls. Also want to know is it worth investing in small amount or u really required a big amount?
pls advice me the best. lost so far around USD 20000.
If you ask me whether anyone can really make money from trading forex, I will tell you YES. But not everyone who has got into forex trading eventually make money from it. In fact, 90% of new traders who get into trading lost all their money and only 10% of them actually make money from it.
So what really separates these 2 groups of people?
The group that eventually make it believe that forex trading takes time to learn and they are willing to put in effort and time to learn the rope and then practice it until they are able to make money from it. There are people who spent 2 years on demo before they eventually make money from trading.
Those 90% who did not make it are those that believes that forex trading is as simple as just UP or DOWN. These people usually do not take up any proper course and they are unwilling to go through demo account as they are very eager to make money immediately.
As for the amount to invest, $5000 is good enough for you to start a mini account. My personal advice to you at the moment is to stop trading for sometime and start looking for a good course that will teach you good strategy. At this point of time, no matter how much you are going to invest, you are going to lose it all.
I believe the reason for your losses so far is due to your lack of good trading strategy. With a good trading strategy, you should have a decent winning percentage and a good risk reward ratio. Do not be mistaken that a good trading strategy is one that wins 100% of the time. In fact, there is no such strategy. If you ever came across someone who tells you that he has a strategy that wins 100% of the time and is selling you the course, you must be very wary of him as he or she must be a scammer.
Spend at least 3 months on a demo account with the strategy that you have learned so that you are able to execute it with the best ability. Once you are able to produce consecutive profitable months with your demo, you can then start going LIVE as this will make sure that you will not lost your money again.
I understand that you must be very eager to get back your $20,000 now as it is not a small sum. However with this revenge mindset, it will make you very emotional in trading and will create more losing trades for you.
Trust me, you will be able to make back your money one day if you are willing to work hard to learn the trade and put your learning into practice. Do not rush to make money in forex as this is usually what kills most new traders.
The above are based on my personal opinion and if anyone of you have anything to share, do feel free to give your comment as it will be valuable to other traders here in this community.