The Forex numbers are nothing but impressive. When you consider that nearly $ 7 trillion is traded in this market every day, and this has a global monetary value that reaches a level of $ 2 trillion, then you are not alone in thinking that this business is synonymous with profit. This data could explain why so many newcomers try to enter Forex trading, obviously lured by the thousands of millions it generates. Many of them believe they can make millions of dollars quickly, but this belief may be wrong.
The foreign exchange market
Ask any financial expert if Forex can make you rich and they might just laugh. This answer may also be shared by some veteran traders. The reality is harsh, as numerous reports revealed that nearly 70% of investors made losses on their investments over a 12-month period. Leverage is a complicated term because you can get into debt so that you can open and control much larger forex trades than you could initially invest. This is why some experienced brokers can offer leverage with large ratios to make both profitable and superior returns just by minting a few hundred dollars.
The disadvantage of such investments is that they can lead to both huge profits and huge losses, as the judgment of making a trade can go in one direction or another very quickly, considering the volatility of the market. If you consider yourself a more stable trader, you can trade highly liquid currency markets such as the US dollar, which offer assets that are easier to buy and sell in real time.
Is there any truth in Forex that makes you a millionaire?
After reading the above information, you may become suspicious and even fearful of starting Forex trading. And given the actual scenario, we can’t blame you. However, Forex trading can actually be a very profitable business. Finally, there are also reports and testimonials from traders who make a lot of money with their trades. The thing is, people can be tricked into thinking that these stories represent the majority of experiences, and they just don’t.
The sad truth of the market is that Forex can really make you a millionaire if you trade at the top of the market, which means you have vast capital with which to close trades that can generate millions of dollars. . If you are serious about getting into Forex trading, don’t be put off by these facts. These top traders were beginners once upon a time, with limited capital and a great deal of ignorance. But they did their homework, they studied the fundamentals of finance and the nature of the market, they risked a lot, they lost a lot, but in the end they managed to make a profit.
The most intimidating fact about trading, not only in Forex but in other markets, is that the possibility of making a profit does not simply depend on your skill as a trader. The market is very complex, full of many factors that can work against you. Forex can make you rich, but it’s not up to you!