Make no mistake: Forex is good. Forex is great! Forex lets you make money in the comfort of your own home.
But Forex is not for the weak - or the lazy. To win in Forex, you must be prepared.
1. Be prepared to lose money. All forex traders - and we mean ALL - lose some of their money, or even all their money, at one time or another. This risk is greater if you enter forex without taking the time to learn about it, but even the most educated traders will have bad-luck days when they could lose everything. But if you know what you're doing, you can get it all back again, and more, the next day. What we're saying is, if you're the type of person who gets chest pains at the sight of an empty wallet or bank account, you should either re-educate your emotions, or think seriously about getting a different source of income.
2. Be prepared with extra money. The minimum amount of money needed to start on forex is $250. But that's the minimum necessary, not the minimum advised. In reality, you should have at least $10,000 for trading, and trading alone. If $10,000 is all the money you have in the world, consider investing it in something much safer, like dry goods retail. Don't invest in forex the money that you need to pay your utility bills, groceries and rent!
3. Be prepared to wait, and to learn. Do not jump headlong into forex without having practiced on a demo account for at least two months. During that time, consider your virtual money to be real money. If you don't succeed in making money in your virtual account, don't even think about opening a real account. Before you risk your hard-earned cash, study, learn, wait, and learn some more.
4. Be prepared to keep on waiting, and keep on learning. Forex is not for lazy, undisciplined people. Forex trading is not a skill you learn overnight. True, it can be the fastest way to becoming a millionaire, but before that happens, you have to master your trade:
• Ask questions • Read the news • Study the charts • Pester your broker (for information, for training, for advice, etc.) • Talk to fellow traders • Find a mentor • Practice on demo accounts • Practice with limited cash
Forex is a great venture that promises great rewards for those who are worthy. It has helped many people make millions right inside their homes: All it needs is discipline, the capacity and will to learn, some old-fashioned common sense, and a little luck won't hurt either.