Lesson 1: Discipline
Contrary to popular belief, FOREX market can be tricky at times and a few wrong bets can sometimes drain your account. A person who trades for a living often is a professional specialized/trained in winning strategies. However, losses come to everyone independent of skill level. What is significant though is the frequency of a losing trade – unfortunately people with less experience tend to lose more capital quicker than anybody else. Sometimes some trades might yield a high return, but if the price that you are paying are consistent losing trades, then there is something wrong in this picture. Losing strategies can deceive you to think that it will work out in the end, but usually, it is the bad discipline that guarantees the failure, frustration and disappointment with the FOREX.
Overall, for an amateur it is NOT recommended that you start right away investing capital into something that you have limited experience in. In addition, individuals who have been hit hard by the recession and are interested in earning more money than typical CD investment, Money Market or savings account (in the US or internationally) while allowing a certain level of risk in this investment, then trading FOREX on your own is also NOT recommended.
Having said that I should note that with enough resources (time, money, financial consulting, training etc..), most people can become quite proficient at spotting trends in the market and end up making trades in the green. A winning strategy takes time to develop. I have spent countless hours trading FOREX and I have drained about 20 demo accounts while trying to create my own strategy. All in all, through my experiences I have confirmed what a financial consultant once told me: "In FOREX you can win BIG really easy, but by the same token you can also LOSE BIG just as easily."
In conclusion, this site provides you with information for you to make a well informed decision should you consider investing in the FOREX market and the FOREX Expert Advisors (FOREX Robots). Although the trust in FOREX Robots may not necessarily be there right away due to lack of information proving their success, investors ARE recommended to follow the discipline of letting the robot do its work regardless of bad trades as it will sometimes make wrong bets. What is important for you to know (and this fact may establish some credibility for the robots) is that robots are “trained” to spot certain trends based on a series of indicators and in the advent of a bad trade it usually enters a “Recovery” mode.
I hope that this serves as a basic introduction to the number 1 rule about FOREX trading. Please stay tuned for Lesson 2 on the Basics and more practical advice to starting your own capital venture in FOREX.
Mateus
Villanova BSEE
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.