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How hard is it to make money trading the forex market? How long does it take to make a living trading the Forex market? These and other important aspects of trading will be covered in this article.
Trading on the Forex market has many benefits over other financial markets, the most important of which are: superior liquidity, 24-hour market, better execution, and others. Because of these advantages, investors and traders consider the Forex market as a new speculation or diversification opportunity. Does this mean that it is easy to make money by trading on the Forex Market? Not at all.
Forex brokers admit that 90% of traders lose money, 5% of traders break even and only 5% achieve consistent profitable results. With these statistics shown, I don’t see trading as an easy task. However, is it harder to master any other endeavor? I don’t think so, think of musicians, writers, and even other businesses, the success rates are pretty much the same, and there are a lot of people who never reach the top.
Now that we know that achieving consistent profitable results is not easy, the question to ask would be: Why do some traders succeed while others fail to trade successfully in the Forex market? There is no definitive answer to this question or a recipe to follow to achieve consistent profitable results. What we do know is that traders who reach the top think differently. That’s right, they don’t follow the crowd, they are an independent part of the crowd.
Here are a few things that set the best traders apart from the rest:
Education: They are very well educated; they have chosen to learn every single important aspect of trading. The best traders know that every trade is a learning experience. They approach the forex market with humility, otherwise, the market will prove them wrong.
Forex trading system: The best traders have a Forex trading system. They have the discipline to follow it rigorously because they know that only the trades signaled by their system have a higher success rate.
Price behavior: They have incorporated price behavior into their trading system. They know that price action has the last word.
Money management: Avoiding the risk of ruin is a primary concern for top traders. After all, you cannot succeed without money in your trading account.
Trading psychology: They are aware of every psychological issue that affects the decisions made by traders. They have accepted the fact that each trade has two possible outcomes, not just the winning side.
These, among others, are the most important factors that influence the success rate of Forex traders.
We now know that making money by trading on the Forex market is not easy, but it is possible. We have also discussed the most important factors that affect the success rate of Forex traders. However, how long does it take to achieve consistent profitable results? It is different from trader to trader. For some, it can take a lifetime and still not get the desired results, while for others, a few years is enough to achieve consistent profitable results. The answer to this question may vary, but what I want to make clear here is that trading successfully is a process, not something you can do in a short time.
Trading successfully is not an easy task; it is a process and it can take years to achieve the desired results. Nevertheless, there are a few things that every trader should consider that can speed up the process: having an investment system, using money management, education, being aware of psychological issues, discipline to follow your investment system and investment plan, and others.
