How to achieve success in the Forex market without losing a lot of money during the initial learning stage

It is known that of all those who start working in the Forex market, only 3–5% achieve success. The rest either give up this activity or continue doing it, constantly incurring losses, but do not quit Forex in the hope of eventually recovering everything lost.

There are two paths to learning to work in the Forex market.

The first is self-study, i.e. you search for and study information about working in the Forex market yourself. This path takes longer to master the basics of Forex trading, but is less expensive.

The second path is to take courses offered by Forex companies. At present, completing a training course at a dealing center or any Forex company costs on average from 100 to 300 u.e. Very often the company adds the cost of your first deposit (usually 100 u.e.) to this amount, which is opened for you immediately after the end of the training. It turns out that the training actually costs you 100–200 u.e.

After finishing such courses and practicing on a demo account, about 90% of novice traders typically lose their first deposit within a few months, and some much faster. The same happens to those who studied on their own, with the difference that they spend less on training.

Having lost their first deposit, some novice traders stop trading on the Forex market, accepting the loss. Others, who want to recover the lost funds and even make a profit, continue learning. They trade on demo accounts, occasionally opening real accounts, and after losing them again, return to demo accounts.

Some learn on their own, others improve their skills by paying for professional courses (average price up to 100 u.e.) and master classes (average price up to 50 u.e.) offered by Forex companies. This period of a trader’s development, during which they mainly lose money, can last from 1 to 2 years or more. Losses can be significant.

So how can you reduce losses during the initial learning stage?

1. Learn to trade on a real account on mini-Forex or micro-Forex. Since there is a big difference between trading on a demo account and on a real account, usually about 60% of novice traders trade successfully on a demo account but incur losses on a real account. Psychology plays a role. You should go through the training stage on mini-Forex or micro-Forex. Mini-Forex and micro-Forex mainly differ from standard Forex in the size of the deposit. Trading on mini-Forex starts with a deposit of 1–10 dollars, and on micro-Forex 0.1–2 dollars. When trading on these types of Forex, the psychological effect on you will be almost the same as when trading on standard Forex. But your losses on mini-Forex will be 10 times smaller, and on micro-Forex 100 times smaller. For example, on standard Forex, with a deposit of 100–200 dollars (using the minimum lot, when the price of one pip is equal to 10 cents), you will have 1,000–2,000 pips available for trading. On mini-Forex you can have the same 1,000–2,000 pips for trading with a minimum lot by depositing 10–20 dollars. And on micro-Forex you only need to deposit 1–2 dollars for the same.

2. Get initial knowledge about the Forex market at free beginner seminars held in the dealing centers of many Forex companies. Then expand your knowledge by reading books about Forex.

3. At the same time, don’t rush to buy the many Forex books available in bookstores or those offered in dealing centers. You can find almost all of them on the Internet, and it will cost you much less. Of course, that assumes you have fairly free access to the Internet.

4. And one more thing: don’t rush to quit Forex. Success in the Forex market can only be achieved by constantly studying it in practice and continually improving your theoretical knowledge.

Good luck!

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Source: Rus-Plus.Info - Forex currency market