A Trading Revolution

Filed under: Learn Forex Trading |

Screen shot 2013-03-13 at 10.35.22The Internet has revolutionised trading. What was once an opportunity limited to the lucky few is now available to the masses – for nothing more than the cost of an Internet connection and a computer. In the past, people would have to do their trading via the telephone, and create their own charts by hand using the daily prices. Nowadays, it is all done for you – and there are a whole host of technical indicators in charting software to assist you.

 

So does all of this new technology and opportunities to trade the forex market level the playing field? Unfortunately, I would suggest not. Much of the forex market is effectively controlled and manipulated by large corporate traders, banks, and governments. Often, these large institutions, which have vast reserves of funds to play with, move the markets in a certain direction in order to take out people’s stop losses and get a better price. These large corporations also usually have access to tighter spreads, which puts individual private traders at an added disadvantage.

 

However, despite the perceived disadvantages that private traders have to deal with, there is still an incredible opportunity for private traders to participate in the forex market and make some real money. It is not as easy as many people imagine, and as such, many beginners enter the market unprepared and end up losing money. In fact, it is often said that around 95% of forex market participants lose money – and this might well be true. But what you should take from this statistic is to take the market seriously, to not underestimate it, and only enter it when you are well prepared. This means, for example, trading on a demo account until you can be profitable for three consecutive months. If you can do that, then you have earned the right to enter the forex market and play with real money.

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