Why More Than 90% Of Forex Traders Lose Money?
There are lots of Forex traders out there. However, over 90% of them never become profitable with foreign exchange. Here are 3 ways to make it happen.
1. Robot Forex trading programs get a lot of hype. While they can make you money, none of them will make you rich-even the best ones. Many investors think they will see returns of 20-30% a year with these robot programs, but these claims are greatly exaggerated.
This is a form of investing where you focus on buying currency pairs for the long term. Most Forex traders use technical analysis, simply because fundamental analysis is rather difficult when dealing with foreign exchange. However, technical analysis can be very time consuming.
On the other hand, fundamental analysis is designed to help you make money long term from an investment pair. The factors you look at to determine a currencies' long term potential include the countries' interest rates, unemployment statistics, and inflation rates.
Having stop losses is very important with Forex trading. If you do not, you can easily hold an investment for too long, and you can end up losing a lot of money from it. Instead, you want to have a set point you will sell at no matter what.
If you are looking to join the many Forex traders investing in foreign currency, you have to take a different approach than most of them. The important things to do are to invest yourself, cut your losses and invest for the long haul.