-The Misconceptions about Education

By: Hillel FuldAs attractive as the Forex market is to many people, the hard statistics show that the vast majority of Forex traders fail in the long run. That is not to say that there are not many traders that make a nice living from the Forex market, there are. However, if we can understand why so many people fail, maybe we ourselves can become a part of the minority that succeeds.
Here are some common mistakes made by Forex traders, which will act as a Forex guide:
-The Search for the Magical SolutionA lot of people are attracted to the Forex market because it generates a lot of hype. The reason it generates so much hype, is because the potential for Forex profitability is endless. However, the nature of hype is that it misses a few details along the way. Yes, you can make a lot of money from Forex trading, but not without working hard at it. There is no one magical indicator that once you figure it out, the dollars start pouring in. It is true that technical indicators can give you a hint of what is to follow in the market, but nothing, absolutely nothing is 100% in the Forex market. Like everything in life, best things come to those who wait. So learn the market, practice, read, and only then should you trade. Expect some loses and do not let them affect your future trading, and just keep at it. You will eventually see your bank account grow assuming you make educated decisions along the way.
-The Desire for Easy MoneyMany people, in fact all people, after working a 9-5 job, are interested in a way to earn easy money. Since the Forex market has become such a buzz word over the last few years, people think this easy money will come via Forex trading. They could not be more wrong. It is true that Forex trading can be from the convenience of your own home, and you have the ability to buy hundreds of thousands of dollars at the click of a button. Yes, that part is easy. But then again, so is throwing your money into the wind. The trading itself might be easy, but making profits consistently is far from easy. It takes a lot of discipline, a broad education on the topic, and a tremendous amount of patience on the part of the trader.
-The Need for a RushThere is no doubt that the ability to trade astronomical amounts of money can cause excitement and a rush for many traders. However, if that is the reason you entered the Forex market, you are in for a very big surprise. This might be the most expensive endeavor you ever tried to achieve a rush. It is true that the available Forex leverage of the Forex market gives you endless options as a trader, but the danger it presents is just as great. In fact, excitement is not the only emotion that should not drive you in the world of Forex. All emotions should be left outside of the "Trading room".
-The Lack of Self AwarenessI have said this before and I will say it again. Forex trading can be an emotional and psychological Forex roller coaster. So many emotions can be a part of your trading day and if you do not have enough control over them, can be detrimental to your Forex career. You need to be completely in tune with yourself and adjust your trading plan according to your personality. Just to explain with an example, do not become a trader that leaves positions open over night if you know about yourself that this will cause anxiety and fear. Trade with a plan that fits you and who you are.
Just like you would not purchase an expensive diamond without a basic knowledge of diamonds, so too, you should not invest your hard earned money in the Forex market without doing extensive research about the complicated world of Forex. Whether you are a believer in the philosophy of fundamental analysis or you believe the trend is your friend, in order to trade efficiently, you need to understand both technical and fundamental analysis. The education of a Forex trader never ends, you learn on every position you open. If someone things they can trade successfully without learning about the origins of the Forex market as well as its inner workings, they are very wrong, and will eventually learn it the hard way.
Just to summarize, Forex is a discipline like any other. I don't think anyone would stand before a judge or operate on a patient (ignoring for a second the legal issues) without having gone to medical or law school. The same applies for Forex. Learn as much as you can before risking your money. That is not the only thing Forex has in common with other fields. Just like a good lawyer or doctor is always improving their skills with time, so too the Forex trader. Train yourself to become the ultimate trader by implementing the above points, and you will be pleasantly surprised by the results you will see from the Forex market.

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Forex Trading for Beginners

By: Hillel Fuld
After working in the Forex industry for some time now, I have been met with one common question countless times. “Isn’t Forex trading just like Forex gambling”? Before I completely negate that question and explain why they are totally different, let me first explain that there is something to that question. 
It is true that there is some percentage of a gamble when opening up a Forex position. No expert, no matter how long they have been trading and analyzing the Forex market, can tell you in full certainty what the US Dollar will do today. There are many tools that can be used in order to help you make a more educated decision, but do not be fooled by so called Forex experts when they tell you they have it figured out. In fact, it is simple math. If they have a 3 trillion dollar a day market figured out, why are they not billionaires? If they really knew the key to eliminating the Forex risk, they would not be wasting their time trying to convert you into a Forex trader. Even in their trading, there is a certain element of Forex gambling.
No one knows “The Forex Secret”. You know why? Because there is no such thing. You can familiarize yourself with all the technical indicators, study fundamental analysis from dusk till dawn, and there still is some sort of a risk when trading Forex. You are still going to be met with a certain factor of Forex gambling.
If you are still reading, you know that while there is great risk in Forex, the possible reward is something you cannot ignore. The potential for making money in Forex trading is as close to endless as any market on the globe. While the Forex gambling/Forex trading comparison is not totally baseless, it is also not accurate and the following is a list of five attributes that differentiate the two industries. 
Numbers
Players
Tools
Emotions
Strategies
 It is true that a very high percentage of traders end up losing, and if you ask me why this is, I will tell you it is because they trade blindly and with no strategy. This is the biggest mistake a trader can make. Before you trade a penny, you need to make some serious decisions about your trading goals and limits. Once you have make those decisions, you must implement them using your trading platform. Use Stop Losses to prevent your emotion and your inner voice from telling you to stay in the trade because it has to go up eventually. Use Take Profits to prevent your natural human greed from telling you not to get out now since your currency will continue to increase in value. Stop your losses and take your profits based on trading strategies and not weak human emotions.   : One of the main issues with gambling, as we all know, is that it causes addiction. If we think about this for a second, we will understand that the reason this is, is because people let their emotions get the best of them. People step into casinos with nothing but their desire to make money. When they do not fulfill this desire, they try again and it is not long before they have lost all their money, which usually leads them to gamble even more, and often more aggressively. This is of course a big problem. In forex trading, on the other hand, the first rule any trader knows is to leave their emotion out of the equation. Trade objectively and scientifically. Set your trading goals, and stick to them. This of course prevents overcompensating with trades, when you have lost money, or letting your greed take over when you are profitable. However, the obvious question is “Is it really possible to leave your emotion out of the picture”? This leads me to my next point, use trading strategies.   : While there is a risk factor involved in Forex trading, you are not totally in the dark when opening a position. There are various schools of thought that dedicate much time and resources trying to eliminate as much of that risk as possible. Whether you are a believer in technical analysis, and the famous saying “The trend is your friend” or you trade with your face glued to the Forex news since you think fundamental analysis is the way to go, Forex is not about luck. You can watch and analyze the Forex market for days before opening a trade, as well as keep a close eye on the currency you are looking to buy, and only then, based on your studies, make your move. I am pretty sure such tools do not exist in the gambling world, which leaves you in the hands of luck or fate. Either way I would not want to depend on chance with my hard earned money. How about you?   : The Forex market is backed by the biggest and most important financial institutions on the globe. It is true that traders do not trade with the banks, but rather on the retail market, even so, the fact that the market is supported by such organization provides a much higher level of legitimacy than the gambling world. While gambling always faces challenges on the legal front, Forex is as legitimate as any other market, such as stocks or commodities. So if you are interested in spending your hard earned money and taking a risk, wouldn’t you be better off putting it where you know the law and morals are on your side?   : Before I get into morals, ethics, legal issues, and legitimacy, let’s just focus on the reason anyone gambles or trades Forex; money. There is absolutely no comparing the amount of money traded daily in the Forex market to that of the gambling arena. In fact, I am not aware of any industry (ok maybe there are a few exceptions) that handles so much money on a daily basis. Depending on who you ask, there are anywhere between 2 and 5 trillion dollars traded daily in the Forex market. I could not find exact statistics about how much money passes through the casinos daily, but I am pretty sure the numbers do not compare. 

It is for this reason that a very high percentage of Forex traders end up losing more than they gain. For this exact reason, it is crucial when first opening up a Forex trading account that you only use money that you can afford to lose. Call it vacation money, designate it for your Forex account, and face the fact that you might lose it.

Many other differences exist between the casino/gambling industry and the Forex market. These are just some examples. If you have more, or disagree with one of the above points, feel free to speak your mind in the comments.