Forex Trading Education - Dont Focus on Making Money

By: Harold Hsu

It's a common thing to see new traders obsess over finding the "latest" and "best" way to trade Forex. While this may seem like the logical thing to do (after all, we're trading to make money right?), the true secret to making money in Forex trading has got almost nothing to do with that at all.

"Wait a minute... are you saying that to make money, we shouldn't focus on making money? That doesn't make sense!"

Believe me, I know this may sound weird... but the honest truth is that yes, you shouldn't focus too much on making money. And here's why...

The "Profit Paradox"

The first thing you must understand is that more than 90% of Forex traders lose money. Why is that? The answer is that many people underestimate what it takes to make money in Forex trading. These people have been misled by online marketers into believing that Forex trading is easy. The people buy into all the "Make $300 in one hour!"-type claims.

And this pulls their attention away from the one important aspect of trading: managing risk.

You see, the Forex market is one of the most volatile and liquid markets in the world. Everyday there are plenty of hazards you must overcome before you can survive long enough to be profitable. Imagine yourself flying a spacecraft into a meteor shower... that's basically what the Forex market is like. Your highest priority should be to survive: don't lose any money!

Once you've picked up the skills to survive in the 'meteor shower' of everyday price fluctuations, then you can start picking up new skills to learn how to profit from the market. Many new traders make the mistake of trying to make money first, before learning how to survive... and as you might expect, they eventually wipe out their trading accounts before even turning a dollar profit.

Foreign Exchange
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