No, Forex Trading is not easy and requires; self-awareness and control, knowledge, practice, capital and hard work. You are getting involved in a field where huge multi-billion dollars banks, hedge funds, investors etc.… are the players, and the people trading on their behalf are top notch performance proven skilled and well-educated individuals. Add to that the resources they have that individual traders don’t. Such as insider information, technology and speed.
Do not listen to clowns and puppets on the web claiming how easy is forex trading and how easily and quickly you can make money. Forex trading is very difficult and not for everyone.
Those clowns are either:
- Trying to sell you some sort of product or service.
- Trying to make you open a trading account to commission on you.
- A salesperson for a forex broker.
- Luckily, they were successful for a short period of time and thought they are kings.
So why trading is difficult?
Simply due to two reasons, the most challenging is the second one. But you can’t do with only one of them, you must have both.
- Knowledge of the market ins and outs. And that requires years of study and experience. Whether technical or fundamental analysis. This is the easiest, knowledge can be acquired with some hard work and time. However, the second is totally different.
- The ability to use your knowledge and interpret and react to market movements in a rational unbiased way.
This is the main reason trading is a complex endeavor. Trading is naturally different from other careers for a main reason; human emotions.
Human emotions have a dominant presence in trading for two main reasons:
Firstly, you are betting with your own money, and when money gets in, emotions start to play a major role. Secondly, our natural fear of failure and personal ego.
When emotions are involved, personality traits of the person will be very key to their trading success or failure. How the person reacts to a certain situation will be vital.
For instance, the simplest example that can happen to all traders is when the market stops you out by a pip then moves back in your expected direction. Are you angry? Wouldn’t that naturally piss you off?
Another different type of emotions you can encounter is; the super confident super uncertain ping pong emotional stances. This happens when you make some good trades and you feel you are better than George Soros, than start to lose and encounter multiple losses in a row, that’s when you start questioning your self again and skeptic thoughts sneak into your mind.
These are just a few simple examples; the combination of conditions and emotions are endless. What we need to understand is that our human nerve system is created this way, we can’t change it, we will be pissed off, we will be angry, we will feel greedy, we will be fearful. It’s a normal built in reactions to our surrounding conditions. So being able to accept our nature and cope with it in a way that doesn’t affect our trading reactions is the hardest in trading.