Forex.Academy Education For Absolute Beginners – Session Two
Thank you for joining us for session 2 of forex trading for absolute beginners. Forex Academy is
your one-stop-shop for all your educational needs when it comes to trading currencies.
In session one, we alluded to the fact that trading is like gambling. However, when you walk into a casino, I think we can all agree that the odds are pretty much stacked in the houses’ favor. And also, gambling on football match outcomes and where people also bet on corners, throw-ins, and the next goal scorer. Again the bettings shops are the ones making the millions because, in gambling, the odds are completely stacked in favor of the betting companies.
The reason why forex trading is often seen as gambling is that a high percentage of new retail customers lose all of their money within the first six months of opening a trading account. In fact, it is over 70%. The majority of these individuals do little or no research and simply have a ‘punt’ on a trade as if they were in a casino or betting on a football match outcome. And of course, subsequently, go on to lose all of their money. New retail traders forget one simple thing: currency trading is a profession. The money markets are run by professional people; many of them are extremely well educated with finance-related degrees.
However, there is still plenty of room for retail traders to consistently make money in Forex, no matter what level of education, as long as they take the time to learn about the various aspects which go into trading. Those that do become traders will have taken the time to educate themselves about the Forex market, and those that cannot be bothered to learn will remain as gamblers.
Let’s give you an example of how retail forex traders regularly make money. If you saw a limousine driving down the street with somebody throwing money out of the window, the next thing you would see would be hundreds of people following that limousine and picking up all the cash.
Simply put, institutional traders move the markets because of the huge amounts they trade with. But they leave a trail of cash for retail traders to pick up in the form of trends that appear on our computer screens. These trends are the limousine driving down the street leaving money for everyone else to pick up
Because these trends are the basis of patterns that recur time after time on traders’ screens. Professional traders and retail traders alike are now becoming more dependent on using chart based tools to decipher these patterns, which, when followed correctly, will stack the odds are in their favor by up to 70%.
This type of trading is called technical analysis. And over 90% of the time, forex trading is done by technical analysis. That’s right, billions of dollars exchange hands, often affecting countries’ economies, and it is largely based on screen patterns! Only when new traders learn all that there is to know about trading with technical analysis, only then they will become professional traders and not gamblers.
Here at Forex Academy, our educational courses have been put together by ex institutional traders and market professionals, and we will take you through the knowledge process, step by step, to help you on your way to becoming a Professional Trader. So take your time and enjoy the ride.