Why Do People Assume That Trading Makes You Rich?
There are several assumptions that are made almost immediately when people learn that I am involved in the foreign exchange market. The first is that I must be commuting into London Monday to Friday to a high-powered, relentless job. The second is that because I am a trader I am obviously rich. Let’s address the first point first. One of the biggest appeals to me when I began my journey into the forex market was the flexibility. It isn’t like the stock exchange market where there is a physical building dedicated to traders; I think this is what so many people find appealing. You can trade in...
Read MoreForeign Exchange vs Stock Exchange
When you are looking to begin your journey as a trader the first important decision you will make is the market that you want to trade in – the foreign exchange market or the stock exchange market. Having traded in both, ForEx is my personal preference due to its liquidity and how much quicker the market moves in comparison to the stock exchange market. One of the main differences between the two is where they are traded. The stock exchange market has a fixed location such as the London Stock Exchange whereas the foreign exchange market is not geographically tied; in fact it is...
Read MoreDemo Accounts
Are you learning to trade? Demo accounts are a great way to get a feel for the way that the system works but my advice to you would be to limit the period of time that you use the account for. I would personally advise that you only use the account for roughly a month. Of course if you are not feeling confident by all means continue using the demo account, however it’s important to be aware that when you trade in the market it will feel completely different. There are a lot of different factors that will start to influence your decisions when you are trading with real money because...
Read MoreThe Wolf of Wall Street
The Wolf of Wall Street was one of the years most highly anticipated films and has been nominated for 5 Oscars as well as 2 Golden Globes and 4 BAFTAs. It really is a great story but what many people are struggling to get their head around is the truth behind it. The film was adapted from Jordan Belfort’s tell-all (or as much as he wants to reveal) book. Now while I can appreciate the entertainment value I can’t help but feel that the film portrays trading (albeit stocks rather than ForEx) to be a much easier profession than it is in reality. It would not have made the most interesting film...
Read MoreInvest the Time
There is a lot of white noise around trading. People seem to think of it as a get rich scheme, whereas the reality of it is quite different. Trading is a skill and like all skills it takes time and effort to develop and learn. Think of the job that you are currently in. Are you good at your job? I’m hoping that the answer is yes! Now think back to your first day at your job, chances are your skill set has developed significantly since then and this is the same as in trading. People ask my advice on forex trading nearly every day and my advice will always be the same. Invest the time to...
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