Are You a Forex Gambler, Dreamer, Or Adrenaline Junkie?


Forex real time trading has become quite popular in recent times. With the increase in the economic recession environment where residential and commercial properties become progressively more problematic, investment in Forex is still thriving and pulling in new investors. As stock and mutual fund investors are pulling out of the markets, they are sitting on mountains of cash, itching to invest in something. Eighty percent of stock and mutual fund investors tend to buy and hold, hoping the markets will recover one day. Most of the investors are not sophisticated enough to perform short selling when they believe that the market will go down. The dynamic of the market has changed drastically, and the old belief of buy and hold is becoming archaic.

In the real estate or stock market, the gains are produced when investors buy at a low price and sell at a higher price. The time frame for profits is counted in weeks, months, or years. In Forex trading, the gains and losses can be achieved in a matter of seconds, minutes, or hours. It is an investment on steroids, and too much of anything will tend to create side effects and undesirable results. Whatever happened to the realistic goal of 12% return per year and the rule of 72? Basically, if you are able to obtain a return of 12% per year for six years, you will double your investment. These days, Forex traders are asking for returns of 12% or more per month. There is also the mantra of 10 pips a day. Using the power of compounding, 10 pips a day is supposed to create Forex millionaires after one year. In the past six years, I have not met any Forex millionaires, but I have come across many Forex gamblers, dreamers, and adrenaline junkies.

Wealth building takes time, and accelerating the process will create problems. For instance, driving from Vancouver (home of the 2010 Winter Olympics) to Calgary (home of the 1988 Winter Olympics) takes approximately eleven hours (approximately 1,000 km), driving at the speed limit. Some drivers claim that they can do it in seven hours. You can be sure that the speed limit was not observed and the fine for speeding can be as high as $ 300. The fine is not as significant as speeding and going off the cliff for driving too fast on the roads of the Rocky Mountains. If someone claims that the drive only takes him 4 hours, you know that it is impossible. Somehow, people often fail to apply this common sense to Forex trading. If someone claims that you can be extremely wealthy within 4 months or over night by learning a secret trading method or purchasing a money making software, it should be recognized as an impossible task similar to driving from Vancouver to Calgary within 4 hours. If another person claims that you can be extremely wealthy within seven months by purchasing their Forex coaching DVD or purchasing 95% winning software, it should be recognized as driving from Vancouver to Calgary within seven hours. The analogy of getting a speeding ticket or going off a cliff for driving too fast is getting your account to blow up or to margin out for aggressive trading. Many of us have done this, approximately 95% of Forex traders.

Every trading method and trading software will take time to build up profits; hence, don't expect to become a millionaire in a few months by purchasing a trading course, an ultimate indicator, or super profitable Forex trading software. There is so much hype that trading is about making money fast. Suddenly, we don't have Forex traders or investors, but gamblers, dreamers, and adrenaline junkies chasing the market. The live Forex market is ever thriving. Every day, thousands of people indulge in real time Forex trading due to the marketing hype of the industry and the Forex brokers. Some of them don't even know the basics of the market, resulting in a substantial loss.

The volatility of the foreign currency market gives real time Forex trading the potential to boast lots of potential profits, while 95% of Forex losers are swept under the carpet licking their wounds.

Source by Winsor Hoang

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