Introduction

 

You’re about to learn the main reasons behind the massive failure rate of retail traders and how you can avoid them and enjoy the incredible earning and lifestyle potential from consistently taking money out of the financial markets. Why only 5% of retail traders make money and what you must do if you want to join them .....?

Volatility, or the tendency for fluctuation that can affect your earnings within the stock market, is typical within a domestic market but even more evident and much stronger on the Foreign Exchange Market. What factors affect the value of currency on Forex, and is there any way to control this?

 

So far we have looked at the main types of mistakes that cause so many traders to fail. Essentially what’s been covered is a series of bad decisions which result in losses most of the time. Your task as a “soon to be good trader” is to recognize when you are at the decision points and make easier to make agood decision. After enough practice making good decisions becomes automatic. To understand and recognize your decision points it’s helpful to know what’s motivating those decisions – the underlying causes of trading failure:

1) Knowledge Deficiency – Most new FOREX traders don’t take the time to learn what drives currency rates (primarily fundamentals).

2) Overtrading - Trading often with tight stops and tiny profit targets will only make the broker rich. The desire to “just” make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.


Forex Defenition

 

Forex or FX is the nickname for the Foreign Exchange Market in which currencies are traded or a market where participants buy, sell, and exchange trillions of dollars worth of currencies daily. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.

Think about this. In your entire lifetime, how much money has gone through your hands? Let me explain to you what I mean by this. Maybe you made $73,000 last year as a 28-year-old. And you got your first check at the age of 14 for $100.00. Add everything up from that first check until today. You’ll come up with a number. It could be $493,000 or $1.9 million or $6.3 million, depending on who is reading this.

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