Learn Forex

Learn Forex

 Forex > Learn Forex > The Ugly Truth About Online Forex Trading

The Ugly Truth About Online Forex Trading

The Ugly Truth About Online Forex Trading

We won’t keep you in suspense. The ugly truth about online forex trading is that an extremely small percentage of online forex traders make money trading currencies; the vast majority of online forex traders lose all deposited funds within one month.

The choice from there is whether or not to re-up or give up.

Not that we can verify that premise statistically, however, because online forex brokers guard that information with their lives. Would not give up that information for anything in the world. Will never give up that information for as long as they live.

It’s one of those “open secrets” that hides in plain sight.

Anecdotal Reports of Rookie Forex Traders Getting Eaten for Lunch

When we talk to people who work at online currency trading outfits, they tell us quite frankly, albeit off the record, that many, many more “clients” see their whole accounts wiped out in one day than make any kind of consistent dough trading forex.

Conversations like those, in fact, are what caused us to redouble our energies into encouraging you, our reader, to trade forex as professionally as possible at all times, rather than going at this game with a get rich quick attitude.

Which can get you poor in a New York minute.

Professional Traders Know the Truth

For example. We were on a call a while ago with Mike Norman, a longtime professional trader who does a lot of media appearances and a little teaching on the side. Norman is a smart guy who knows what’s up, you can bet your account on that.

It was a bit surprising to behold, nevertheless, the sheer bluntness of how Norman described forex trading as a prime example of “Casino Capitalism.” Norman described, vividly, how mercilessly the forex markets exploit the “average guy” who wants to be a hero.

Norman thought, when everything Casino Capitalism-related crashed in 2008, that some government, somewhere, would step in and regulate the retail online forex market out of existence. He was even in favor of that being done—of his livelihood disappearing.

But no. Not at all. Nothing was shut down.

Instead, ads for forex trading are everywhere, everyone is encouraged to sign up and give it a try. An extremely high percentage of these new sign-ups will be losers.

Guys like Mike Norman know that and so should you.

It’s Not a Secret: Forex Fools Are Being Targeted

If you are new to trading the currency markets—new being defined as you have less than five years experience trading forex—you are being targeted. You are not being paranoid to feel that you are being targeted. You are being targeted.

Professional forex traders at banks, hedge funds, and small independent investment shops are actively trolling the currency markets seeking to relieve you of your money.

This is an indisputable fact.

The good news is that you can protect yourself. You can arm yourself with a professional approach to the forex markets—practice, patience, and prudence—that cannot be defeated by any other trader’s scheme to take your money.

By acting like a pro before you are a pro, you can join the exceedingly slim ranks of forex traders who not only don’t lose money, but actually make money on a consistent basis. It may be true that 95 percent of traders lose, but the 5 percent who win, win big.

If your forex trading approach tends towards tomfoolery, though, expect nothing less than a thorough thrashing.

 

Important Forex Information

The most important step in currency trading is finding the right broker; our forex experts can help. See our
reviews of forex brokers for more information.  

Advice from certain individuals can markedly increase your chances of becoming a successful forex trader. Find out if it's worth paying for forex training.  

Finding a good forex community, sharing good advice and tips, can vastly improve your trading. Figure out how to use the forex community.  

Forex trading hasn't always been around; understanding how it came into being can help you succeed in trading this market. Read about the history of foreign exchange trading.