Can you get rich by trading forex? This is the most common question asked by many people wanting to invest in financial markets. So, with over a decade-long experience in trading, I will answer this question Today.
The answer is absolute yes and no. Yes, because you can really get rich only if you consider trading forex as a genuine skill. It takes learning, practice, and experience on a regular basis to make consistent money. However, if you cannot afford to invest a decent amount of time to learn the fine art of trading, then the answer is no.
The beginners get attracted to the forex market due to its high liquidity and decentralized nature. The forex market is highly rewarding for disciplined and educated traders. It does NOT offer a Get-Rich-Quick Scheme.
So, how can I make money?
It is actually very simple. Consider forex trading as a part-time job. Practice at least four or five trading strategies on a demo account. Analyze your trades of a demo account and only if you are profitable then go on to trade on a Live account.
How many hours of trading are needed on a daily basis to make money on forex?
It really depends on an individual. At least two to three hours of trading each day Will be enough to make a consistent amount of money. however, one must consider trading during the major sessions like the Sydney session, the Tokyo session, the London session, and the New York session.
What if I follow this and still lose money?
All forex traders lose money on some trades. Losing is a part of the game. To protect your account, you must use risk management. Even billion-dollar hedge funds use risk management. To be successful in the long run, one must aim for at least a 55%-win rate. So, one must win 55 out of 100 trades. This is attainable.