Learning from your mistakes is the best rule you should follow well not just for FOREX. Now we proceed to our Seven rules. These are for your help, as mentioned earlier, from experienced, successful traders. Remember there is much more to successful forex trading than these rules.

But this is a good start. Is anyone else having this issue or is it a issue on my end? Save my name, email, and website in this browser for the next time I comment. Press ESC to close. Share Article:. However, forex trading has its disadvantages, such as high risk and volatility. There are several advantages that a career as a forex trader , also known as a foreign exchange trader, offers. They include:.

Forex trading can have very low costs brokerage and commissions. There are no commissions in a real sense—most forex brokers make profits from the spreads between forex currencies. One does not have to worry about including separate brokerage charges, eliminating overhead costs. Compare that to equity or other securities trading where the brokerage structure varies widely and a trader must take such fees into account.

Few traders make trades during complete off-hours. business hours, as little development is expected and prices are in a stable range during such off-hours for AUD. Such traders adopt high-volume, low-profit trading strategies , as they have little profit margins due to a lack of developments specific to forex markets.

Instead, they attempt to make profits on relatively stable low volatility duration and compensate with high volume trades. Traders can also take long-term positions, which can last from days to several weeks. Forex trading is very accommodating in this way. Compared with any other financial market, the forex market has the largest notional value of daily trading.

This provides the highest level of liquidity, which means even large orders of currency trades are easily filled efficiently without any large price deviations. This eliminates the possibility of price manipulation and price anomalies , thereby enabling tighter spreads that lead to more efficient pricing. Traders don't need to worry about the high volatility during opening and closing hours, or stagnant price ranges during the afternoons, which are trademarks of equity markets.

Unless major events are expected, one can observe similar price patterns of high, mid, or low volatility throughout the non-stop trading. Being an over-the-counter market operating across the globe, there is no central exchange or regulator for the forex market.

Most such developments are already perceived and priced into the market. Such a decentralized and relatively deregulated market helps avoid any sudden surprises. Compare that to equity markets, where a company can suddenly declare a dividend or report huge losses, leading to huge price changes. This low level of regulation also helps keep costs low. Orders are directly placed with the broker who executes them on their own.

Another advantage of deregulated markets is the ability to take short positions , something that is banned for a few security classes in other markets. The major currencies frequently display high price swings.

If trades are placed wisely, high volatility assists in enormous profit-making opportunities. There are 28 major currency pairs involving eight major currencies. Criteria for choosing a pair can be convenient timing, volatility patterns, or economic developments. A forex trader who loves volatility can easily switch from one currency pair to another. Due to tight spreads in terms of pips , one can easily start forex trading with a small amount of initial capital.

Without more capital, it may not be possible to trade in other markets like equity, futures , or options. Availability of margin trading with a high leverage factor up to to-1 comes as the icing on the cake for forex trades. While trading on such high margins comes with its own risks, it also makes it easier to get better profit potential with limited capital.

There are hundreds of forex technical indicators to draw on for short-term traders and several fundamental analysis theories and tools for long-term forex trading, creating an enormous choice for traders with varying levels of experience to make a swift entry into forex trading.

Due to the large size of the forex market, it is less susceptible to insider trading than some other markets, particularly for major currency pairs. However, it is still sometimes subject to market manipulation.

In essence, there are lots of advantages to forex trading as a career, but there are disadvantages as well. Due to the deregulated nature of the forex market dominated by brokers, one actually trades against professionals. Being broker-driven means that the forex market may not be fully transparent. A trader may not have any control over how his trade order gets fulfilled, may not get the best price, or may get limited views on trading quotes as provided only by his selected broker.

A simple solution is to deal only with regulated brokers who fall within the purview of broker regulators. The market may not be under the control of the regulators, but the activities of brokers are.

Forex rates are influenced by multiple factors, primarily global politics or economics that can be difficult to analyze information and draw reliable conclusions to trade on.

Most forex trading happens on technical indicators , which is the primary reason for the high volatility in forex markets. Getting the technicals wrong will result in a loss.

While a trader can benefit from leverage, a loss is magnified. Forex trading can easily turn into a loss-making nightmare unless one has a robust knowledge of leverage, an efficient capital allocation scheme, and strong control over emotions e. In the stock market , a trader can seek professional assistance from portfolio managers , trade advisors, and relationship managers. Forex traders are completely on their own with little or no assistance.

Disciplined and continuous self-directed learning is a must throughout the trading career. Most beginners quit during the initial phase, primarily because of losses suffered due to limited forex trading knowledge and improper trading. With no control over macroeconomic and geopolitical developments, one can easily suffer huge losses in the highly volatile forex market.

If things go wrong with a particular stock, shareholders can put pressure on management to initiate required changes, and they can alternatively approach regulators.

This leaves a lot of new — and some seasoned veteran — Forex traders thinking about quitting the game altogether. You should only quit forex if you have truly exhausted all possible options when it comes to progression. The choice to give up on forex trading is very personal and depends mostly on situational factors, such as other commitments and financial situation. One of the most important things you need to ask is whether or not you been having any real success in the Forex markets.

Some people like we mentioned above get pulled into Forex because of the promise of easy access and almost unlimited profits. They jump right in with both feet, never really understanding that Forex success demands strategic investments and a lot of dedication. It actually takes on average over a year to learn the ropes, let alone reach large levels of profitability.

Another tip that Forex investing might not be for you is if you sort of fly by the seat of your pants, trading Forex on a whim without ever planning your moves, journaling your wins and losses, and adjusting your strategy as necessary. They think everything through from start to finish, execute their strategy, and then record whether or not their decisions were profitable.

More importantly, though, they adjust on the fly using this information to better inform their next investing decisions. Before you make the decision to quit Forex altogether, though, first consider changing your strategy. The first thing you want to do is really track and measure how effective your Forex strategy has been up until now. Secondly, you need to think about whether or not you are actually getting closer to your goals or are getting pushed further away.

Every move you make in Forex may not be a winner. But it should inform your trading, help you make smarter moves in the future, and inevitably get you closer and closer to your Forex investing goals. There are a huge amount of good forex courses out there to find and implement new trading strategies!

At the end of the day, a lot of Forex traders are going to fail — and a lot of them are going to quit because of it.

Kyle Townsend is the founder of Forex Broker Report, an experienced forex trader and an advocate for funding options for retail forex traders. As the forex prop firm industry has grown, so has the amount of prop firms offering funding for traders.

With forex brokers reducing leverage and the industry getting more regulated, trading your Article Contents Should I Quit Forex? Do You Plan Your Trades, Journal Your Wins and Loses, and Adjust as Needed? Are You Bouncing from One Trading Strategy to Another with Little Rhyme or Reason?

Are You Still Having Fun Trading Forex? Should I Change Forex Strategy or Quit Trading? How Effective is Your Strategy Right Now? Are You Getting Closer or Further from Your Goals? How Many Forex Traders Fail and Quit? In Summary — Should You Give Up On Forex Trading? Continue Reading.

Pros and Cons of a Forex Trading Career Pros Low overhead costs—there are no commissions or regulatory fees. Low overhead costs—there are no commissions or regulatory fees. You are emotionally stable. In the stock market , a trader can seek professional assistance from portfolio managers , trade advisors, and relationship managers. In fact, if you're starting Forex with the hope of becoming rich quick, you may want to reconsider the decision entirely. The best approach is to keep strict stop losses for all forex trades and trade systematically through a well-planned approach.

Categories:

• Forex Brokers
• Forex Bitcoin
• Binary Options
• Forex
• Binary Options online