The simple answer is yes. It is however important not to look at the simple answer but to look at the probabilities and reasons why some people make money from trading forex and others don’t.
Most studies claim that 95% of people fail when trading forex, this surprises me as I have worked in the industry for a long time and I have found the figure to be closer to 99%. This figure is extremely important as it puts an emphasis on the scale of skill required to be a successful trader. Most trading products are sold as easy to use and no experienced required. The harsh reality is that most of these trading tools and software is the reason that the figure above is so high.
Lets use a simple example to illustrate :
You have never made a fire before and prior to your first time of making fire you seek instructions to do so. You find instructions online by paying $99 and you are sent a “how to make a great fire” pdf to your email. The PDF instructs you to do the following :
Get yourself a box of matches.
- Buy wood.
- Stack the wood.
- Light the wood.
- You have a fire.
The flaws in this method are obvious, if you do not see them let me point them out.
How do you know that the person that has written the PDF actually knows how to make a fire?
The instructions are vague. e.g what matches and what type of wood should you use?
It is a potentially dangerous situation and yet no safety advice or the potential of disaster is mentioned.
All this applies to forex trading products. They are usually sold by people who cannot trade. The instructions are vague so that it can be defended when you make a loss. The potential of losing your capital is either understated or not mentioned at all.
As with fire, forex trading is a very powerful thing when used correctly. You can make a lot money trading forex when you trade correctly. When it is used incorrectly you will lose all your money. Most people reading this article will fail. The reason is most often greed. Start slowly and take the least amount risk possible and work your way up. If you do not go about it this way then the answer is simple. No you cannot make money from forex trading.
So how do you make sure you will not fall victim to poor products and bad trading habits? That answer is really simple, use only trading products from SAFX, South Africa’s ONLY proper forex trading software and tools.