Forex Illusions and Reality

The world of Forex is filled with illusions. There are the illusions which analysts create in their articles and prediction (which often don't come anywhere near the truth). There are the illusions that Forex brokers create as they try to lure you into opening an account with them specifically.

Finally, there are the illusions that traders create for themselves. Usually, they revolve around the prospect of making a substantial income very quickly from trading alone.

These illusions can be risky as they make you vulnerable to two kinds of possible problems:

1. You'll be tempted to purchase too many trading systems because each will play on your already established illusions and paint itself as the one and only thing you need to turn those illusions into a reality.

2. You may take on too much risk in your own trading. If you start to believe that you can make a lot of money very quickly with very little effort, you may abandon the basic rules of risk management that are the cornerstone of any trading method.

What is the reality of Forex trading?

Unfortunately, it is very far from the illusions that many traders start out with. The reality is that a lot of traders end up losing money in the market. They try very hard but many fail.

You can't expect to make money in Forex without going through a period of education and acquiring experience in trading. You can't expect to earn a lot without experiencing losses as well. You can't expect any one tool to make learning and practicing unnecessary. All of these things are possible, of course, but they are unlikely.

What is likely to happen is that you'll start out with small amounts and slowly build your knowledge and experience. You will face disappointment and, at times, you will even want to quit trading entirely. If you decide to persist, though, you will slowly grow accustomed to the way in which the market moves and behaves.

You will need to work with some sort of trading system to guide your actions. You will need to give each system time to master it complete and to be able to judge its performance correctly. You will have success and failure. They often come one after the other and you need to avoid looking at each of them separately and be able to look at the whole picture, the bottom line.

Only if you are able to let go of your illusions and to work at becoming a better trader will you ever find real success.