Why You Should and Shouldn’t Trade Forex

Are you considering the thought of joining the Forex market? Do you want to trade forex with copy trading? You might be interested in becoming a Forex broker, but unfortunately, becoming a trader isn’t for everyone. In a review on retail trading conducted by the UK’s Financial Services regulator, it was found out that 82% out of the total number of retail traders actually lost their money. This statistics is not just isolated to Forex traders but to all kinds of trades including CFD and other binary options. Trading is also tagged as a zero-sum game because if there will be winners, there will be more losers.

Should You Join Forex or Not?

So before you decide to join the hustle and bustle of the Forex market, you need to determine if you are really fit for this industry. If you are an aspiring trader, you must ask yourself the main reason for joining the market.

Top 5 Reasons Why You Should Avoid Trading Forex

You are using money that you can’t dare to lose.

The Forex market is so volatile and the risks are waiting for you behind the door. Especially for new traders, there’s a huge chance that you will lose the money you invested. And if you are using leverage and margin, then you double the risks as much as it doubles your chance to gain profits.

You’re not knowledgeable in this field.

Since money is involved, it is just right to research the venture that you are about to partake in. Additionally, you must ditch the idea that you can take a shorter route to success. Those things were purely for advertisement purposes only as there are no secrets or a shortcut to becoming a profitable trader in the Forex market.

You can’t handle losses.

Whether you accept it or not, losses are married to success in trading. You cannot totally eliminate all those small losses when you trade. All you have to do is handle them appropriately.

You dislike risks.

You cannot eliminate the risks every time you enter a trade. What you can do is control and manage it.

You are too busy.

If you are occupied with other things, such as your corporate job, Forex trading might not be good for you. But you can still venture into other investments that might not require a lot of your time.

Top 4 Reasons To Trade Forex Now

You love the idea of trading anytime you like.

Since the Forex market is open 24/7, you can choose a time of the day to trade forex with copy trading. This offers great flexibility among traders who want to trade part-time.

You are interested in fundamental and technical analysis

The Forex market is geared by technical and fundamental analysis. If you love things like technical patterns, price study, charting, and others, then Forex trading is the right one for you.

You are capable of dealing in a high-risk environment

If you think that your tolerance for risks and pressure is high, then you are destined to be a Forex trader. With these characteristics, you will be able to protect your capital more efficiently.

You are patient enough to create a trading plan

With the use of a trading plan, you can check not just the losses in the past but also your winning strategies.