E How Do Forex Big Hitters Do It?

Forex trading accounts for more than $5 trillion worth of transactions every day. And while huge chunks of these transactions are done by institutional investors (banks, hedge funds, brokers, and dealers), most of the accounts are held by individual investors. This is a simple way of describing the forex market (there are several traders but only a few players call the shots).

Nonetheless, this does not mean that only institutional investors can profit from forex trading. In fact, there is a good number of notable big hitters who made money in forex trading as individuals. You can read about some of them on the forex millionaire success stories article published on Global Currenciez. It shows clearly that making money in forex is not a myth as some critics of the industry tend to point out. It is just as real as other trusted forms of investments. The only difference is that the risks are higher, and this is clearly stated on every forex broker’s disclaimer statement.

There are some theories which suggest that 95% of those who invest in forex lose money. Based on the unpredictability of the forex market and the clear lack of knowledge amongst most wannabe forex millionaires, it’s easy to see why only a mere 5% end up being profitable in the lucrative day trading market.

So how do the big hitters in forex do it? Let’s examine.

Trade smart not often

According to several reports linked to those who have made money in the forex trading market, trading smart trumps frequency. Novice traders think that by trading several times a day will help them make more profits than those who trade less often. A more detailed report on this subject was published by India’s Economic Times and contrary to the opinion of the many, trading less often has several benefits.

Research has shown that those who trade less often are likely to have a sounder trading plan than those who engage in scalping. Trading more often also leaves traders open to more losses related to a premature closure of positions. On the other hand, when you have a trading plan in place the short-term market fluctuations are likely to have less impact on your trades.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor ...

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