How Difficult Is Forex Trading?

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Is Forex trading difficult to learn? Know how hard is it to learn Forex trading and gain insights from a professional Forex trader.

How difficult is Forex trading? Beginner traders always want to know the answer to this question before they start trading currencies.

To be frank, trading Forex may seem hard and complicated at first, but it’s not; that doesn’t mean it’s easy.Β 

Forex trading is simple, but it’s not easy to master, and there are good reasons for that, which we’ll consider in this article.

We will describe how difficult Forex trading is and the necessary steps novice traders can take to make profitable trades.

At the end of this article, you will decide for yourself whether or not you are ready to make a living trading the financial markets.

Now let’s find the answers to the following questions:

  • Why is Forex trading difficult?
  • How hard is it to learn Forex trading?
  • How to overcome Forex trading difficulties

Why is Forex trading difficult?

Why is Forex trading difficult

The best Forex traders are Pilots, and that’s a fact. They are hardwired for survival and risk avoidance.Β 

Their emotional system kicks in when they feel stressed, worried, or fearful, which may be the slightest physiological response. Our brains haven’t evolved since the Stone Age, and this is where the problem arises when trading.

Forex trading is a risky venture. Chances are you will lose capital trading Forex. But even professional speculators have losses, but they have mastered the art of their winnings by overcoming their losses.

When your profits start shifting into losses, your body and mind respond. Your heart rate increases and you may be holding your breath. You get close to the computer screen and you might shake hands. Your body temperature also rises.

Nobody tells you this about the FX markets, do they?

Pilots face risk every time they hit the track and train to handle it.Β 

In effect, you have to nullify your human responses to risk. It is why Forex is so difficult and why over 80% of traders fail.

But how difficult is Forex trading?

How hard is it to learn Forex trading?

How hard is it to learn Forex trading?

Some brokers and vendors of trading signals want you to believe that trading FX is very easy and get rich quickly.Β 

They will try to sell you the magic system, the foolproof indicator, or an automated trading system.

But the truth is, there is no shortcut to success in FX trading. Great things take time. Hence, this article is meant to encourage beginners who are trying to make money trading Forex to know how hard is it to learn Forex trading.

So is Forex trading worth it?Β 

Yes, it is, if only you are ready to do the work and put in the time.Β 

Consider the example of Eze Kelechi. He has been a professional Forex trader for more than three years:

If I had known how hard is it to master Forex trading and that it would take more than three years for me to start making progress in trading FX, I probably wouldn’t have even started it. I did everything right that was required. I watched several YouTube videos on how beginners can start Forex trading. I even bought and read books on Forex trading. I kept looking for the magic strategy, the one thing that would make me quick profits, but it never happened.

What did he do differently?

I was at the point of giving up two years later after losing 75% of the funds in trading. I took a break for a few months and figured out why I was losing. I realized that I kept changing everything but myself. That was a moment of truth. I returned to trading with a different attitude.”

Note: Successful forex traders understand that risk management is crucial, and they never risk more than they can afford to lose on any given transaction.

Did Eze succeed?

I still lost money, but never gave up again. I trade a lot less than I did and only look for profitable trades. I don’t even get excited about winning, and overall, I’m calmer and less enthusiastic about Forex trading. Now, I know that I will succeed in trading Forex because I have stopped being in a hurry.”

What can we understand from the experience of Eze? At least two lessons!

  1. Forex trading is both easy and difficult, depending on your approach
  2. Take your time and put in the effort to educate yourself the financial markets

One of the rules is to spend 3-6 months practicing with a demo version. When you have learned the ropes, then you can start trading with a live account with low risk.

So, do not focus on making profits but on becoming a better trader.Β 

Trading FX is a paradox. The more you want to make some cash, the less you will earn. The less you care, the more likely you are to earn.

How to overcome Forex trading difficulties

Forex is so hard to master, especially for most beginners who blindly jump into trading. The 80% failure rate for new Forex investors is due to a lack of experience and knowledge.

We have listed below six practical steps for newbies to follow so as to avoid the difficulties you’d encounter in the FX market:

  1. Practice with a demo profile: Using a demo for a period of 3-6 months allows you to understand how the Forex market works. You can practice to evaluate the effectiveness of your strategies and indicators and any other trading tools. By the time you open a live trading account, you will be mentally prepared for the challenges of Forex trading
  2. Backtesting trading strategies: Before you open a live trading profile, you should have 2-3 trading strategies to suit different market conditions. You need to know what you are looking for as a signal to enter and exit a trade.
  3. Create a trading plan: Your trading plan will include risk management and risk/reward (RR) ratio for trades and exit plans for if a transaction goes wrong. This framework should include a walk-out decision after a certain number of losses and a percentage target for the week or month.
  4. Create a trading journal: Use your journal each day to track your trading performance, documenting why you entered a trade, what happened, and what you might do differently next time. A trading journal can also help with a good rant when things go wrong
  5. Open an account with a regulated Broker – There are many scam brokers online. Find a regulated Forex Broker in your country. Regulated Forex Brokers have to overcome many hurdles to get licensed, and it is expensive. So it’s in their best interest to take care of their customers. And you have some compensation with the licensing body if something goes wrong with the broker.
  6. Develop a trader mindset: Practice relaxing in your trading station. Breathe deeply and focus on staying calm no matter what is happening on the chart. Tell yourself it’s just money and teach yourself to wait before entering a trade. Avoid revenge after an unexpected loss.

The six steps we have discussed prepare inexperienced investors for live Forex trading. But you have to remember that, unlike trading with a demo account, your emotions will run high when you start trading with real currency.

Take away

This article has established how difficult Forex trading is for most new investors. To be successful, you need to know how to trade Forex markets and practice with a demo account.

Forex trading is not an avenue to get rich quickly. So allow for several years of trading experience to sharpen your trading skills. The more you focus on becoming a better trader, the more likely you are to earn some moolah.

No matter your experience level, any dedicated individual can learn and excel in the FX market with the right education, practice, and discipline.

Eze who we mentioned earlier is now making a living after having devoted his time to trading over the course of three years. He has been where you are today and has lost money too.Β 

So your success in Forex trading depends solely on your mindset. Just develop a trader mindset and aim to trade Forex as successful traders do.