Forex is What makes the World Go Around

Filed under: Learn Forex Trading |

 

Okay – so it’s love that make the world go around… But I would say that forex is a close second. If you ask someone on the street what they think the biggest market in the world is, they would likely say ‘the stock market’. However, they’d be wrong… very wrong! The combined stock markets around the world are tiny compared to the behemoth that is the forex market. It is thought that the forex market has an average daily turnover of four trillion dollars ($4,000,000,000,000). That is a lot of money and it is this kind of mass trading by both individuals and institutions that is driving modern day capitalism.

 

So how does all of this help you? Well, think about it… How much money do you really need to live a good life? And with $4 trillion up for grabs every single day – that means that you only need a few very small crumbs from this monstrous pie to be able to live that good life. Another statistic that if often bounded around is that a large percentage of forex traders (something like 90 or 95%), ultimately lose money in the forex markets. This means that a very small percentage of traders are making all of the money. So what you have to do is to be skilful enough to be in this top 5-10%.

 

Now you are asking how you get into this elite trading group? Well, there are no easy answers to that question. However, there are some things that will help to put you on the right track – these being strong money management skills, managing risk-reward, setting stop losses, and having a trading methodology with an edge. If you can get all of these ducks lined up in a row, then you just might start to make money in the forex market.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>