Most likely, you are tired of the self-promotion of many trading experts and want to know for sure whether it is realistic to make money on Forex. This is actually not so simple.
The problem is that most of these marketers will not tell you how difficult trading can be. As a rule, Forex work is presented as a way to quickly and easily make money. However, the harsh reality is that this earnings is not easy.
For example, no one will believe the announcement promising to teach you to become a lawyer in a month and provide the opportunity to receive big fees for the battle. A similar situation is with currency trading. No training product will make you an experienced trader in a few weeks. No Forex robot will bring you consistent profit while you sleep.
The second aspect, which answers the question of whether it is realistic to make money on Forex, is to use a trading system. As you know, most novice participants in this market spend a lot of time looking for the perfect option. However, this simply does not exist!
Most trading systems that can be found in various sources are created by inexperienced traders. These methods may work well for several weeks or even months, but they are useless in the long run.
This is especially true for indicators. The indicators are sensitive to changes in market conditions. Some indicator-based systems provide amazing signals in trending markets, but not to a large extent. The problem is that most of these indicators cannot adapt to changing market conditions. Therefore, the system that works this week may not work the next. Therefore, speaking about whether it is realistic to make money on Forex using such indicators, it is worth noting that they should be tested for years.
Also, many traders are not aware that demo accounts will not be prepared for real trading. You can give an example. Imagine a tattooed biker approaching you. He takes out his gun, directs it at you and demands your wallet. What would you do? Most likely, you will give it away pretty quickly. Now imagine that a skinny eight-year-old child comes up to you. He takes out a water gun, directs it at you and asks to give money. What would you do? You will probably start to laugh.
This may seem absurd, but there is a correlation. When you trade on a demo account, you are not using real money. Thus, fear and a sense of risk with real means cannot affect your performance. Demo accounts work like a small child from the example above - this is play money, you can laugh it off and move on.
Psychological factors may seem insignificant, but they play a significant role. Most novice traders begin to trade very well on demo accounts, but immediately face terrible failure on real ones. This circumstance is also important to consider when answering the question of whether it is realistic to make money on Forex.
Demo accounts are great for independently familiarizing yourself with the trading platform and studying the main aspects of trading, but no more. They are also good for basic testing of the new system.
In addition, the reality is that you need to spend a lot of time to become an experienced trader. If you want to learn how to make money in the Forex market, but spend only a few hours a week on it, you will not be able to achieve success. According to scientists, it is necessary to spend 10,000 hours on real practice in order to master something substantial.
The last aspect that answers the question of whether it is possible to make money on Forex is the ability to adapt. The foreign exchange market is constantly changing. You should be able to adapt to it. Or you can never trade successfully.