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    Thread: Why is there always negative thoughts when people hear about forex trading?

    1. #1 Collapse Post
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      Default Why is there always negative thoughts when people hear about forex trading?

      Why is there always negative thoughts when people hear about forex trading?


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      This is so because a lot of persons have a misconception about the forex trading. Some individuals thinks it is an avenue where you go and lose all your hard earned money without getting good Profits while other persons even see the forex business like gambling with your cash.
      Another reason why people have negative thought about forex can actually be due to the fact that they have met with traders who made series of losses in forex trading due to their poor level of expertise.
      These perceptions are wrong about the forex business. There are a large number of people out there making very good amount of profits on daily basis with forex. Some persons take it as their full time job and they make their living from trading forex. The people that have negative thinking towards forex trading needs a reorientation about what the business actually entails and I believe they will like the business and want to participate in it if they are aware of all the opportunities available in forex trading and how much profits can be made from it regularly if the business is property learned and properly practiced.


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      dear friends negative people have any department is not successful and negative thinking is Forex trading also those people who have negative and not work properly over there in Forex trading business and quantity wise post and that one is key to success and you enjoy this business with a positively and well confidence bro


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      Ignorance is the principal thing that makes people go haywire when they hear about the forex trading business. I was once like that too before my involvement in the financial market, I used to see the financial market as some place in which only extra talented individuals and gurus in the accounting system can trade and make profit from, not until I actually familiarise with myself with the financial market. The foreign exchange market will definitely seem complicated to anyone that comes across it for the first times because of the charts, market terminologies as well as indicators used in the market. But this also has to do with the person who introduces one to the forex trading business, if a person is being introduced with a more simple approach they might pick up interest to trade the market, but when they are introduced in the other way, they will definitely feel forex trading as something impossible to do.


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      Quote Originally Posted by Okuteq     
      Why is there always negative thoughts when people hear about forex trading?
      There always negative thoughts when people hear about Forex trading because most of people don't have good understanding and knowledge to Forex business and they consider it as a gambling when they hear that Most of people lose their money in Forex but they don't realize well that those people lose their money in this business due to their lack of experience and knowledge and also their lack of control on emotions .

      But in fact Forex is one of the best business in the world which can generates huge profits to them more than any other business if they learned this business well because this business needs to a long time of learning on the demo account for not less than 6 months and also need to a training on the real account to learn how to control on emotions on the real account but most of people hurry to start their trading on the real account without taking their time in the learning, due to their thinking that Forex is like a money making machine can generates huge profits easily to them and this is why most of people lose their money in Forex.


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      - 80-85 percent of traders lose their money on a daily basis.
      - The market was designed to trap traders.
      - Retail traders have no influence of the outcome or what moves the market.
      - The market is highly dangerous and unpredictable.

      When you look at forex trading from a neutral point of view, there is little to admire about it. People don’t always want a business where you have ‘no say’ or impact on what controls their money. You can blame it on ignorance or fear; come to think about it, it’s not easy because I was once like that. Unless you get exposed and know how it really works.

      When you look at the statistics of how many traders lose their money on a daily basis; you would think twice before venturing on that kind of business. Aside that, forex trading requires high level of dedication, discipline, learning and practicing which most people lacked these days. People don’t want to spend years of their lives learning about trading that doesn’t guarantee profits. Even professional traders struggles at a time; talk more of a newbie.

      Another fact is forex market has only two outcomes, which is up or down, win or lose – no in between. This gives ‘ignorant people’ the impression that it looks more like gambling. At the long run, does the sacrifice worth it? Definitely, forex trading comes with many advantages that other business can’t offer. Like financial independence, being your own boss, making your office rules and so on.


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      If we see how much people have lost in the forex market previously, it is enough for them to have negative thoughts about anything that has to do with trading, I cannot remember how much I have personally lost into trading, but what gives me confidence is the fact that Regardless of the challenges that has been experienced before, I did not find it as a motivation to walk away from the Forex market as I understood that there would never be success without some losses, but when trading has become a certified point for losses always, this could make it more difficult to make yourself believe that success can still happen for you. Also, the mere fact that you have always faced losses does not mean people are also losing, there are still profitable forex traders.


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      The simple truth is that most forex and CFD brokers are trading against their clients. The details in how this is accomplished vary greatly from broker to broker. Broadly speaking, we can say there are two types of brokers: A Book brokers and B Book brokers: A Book brokers may technically be trading against their clients in that they are taking the opposite side of the trade, but they generally are taking a risk neutral approach to the market and are looking to immediately offset the trade. So they are not trading against their client in spirit, only in technicality. B Book brokers will choose what positions of their clients they wish to offset. As such, they are willing to take a directional position in the market, and thus may be trading against their clients in a more material way. For instance, suppose the B Book broker wants to take a long Euro position in the market. To do this, they may not offset the short Euro trades their clients have put on; rather, they will simply take the other side of these trades. A Book and B Book brokers can both run into big problems - for themselves, and in turn, their clients - if the larger banks and brokerage firms they offset orders with no longer take positions. This risk is known as liquidity risk. We saw liquidity risk have a devastating impact on both A Book and B Book brokers when the Swiss National Bank unpegged the Swiss Franc from the Euro, resulting in a huge move in a matter of minutes. You can ask your broker directly about their dealing desk policy. This is largely because they feel uncomfortable about admitting their status as the counterparty to your trade, and because they generally do not educate their staff in the nuances of how they operate and make money


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      If you know how much some people have lost in the forex market previously then you may understand their skeptical attitude towards the business, essentially we understand that many traders are not making money because what they have as their target is not common, and exceptional traders don't even think about forex market as one place to automatically make our dream come through when it unclear about how we are trading, until we apply money management consistently, our account will face several challenges that we may not be able to handle well, this makes trading to be extremely difficult to achieve at the end of the day, sometimes whether we like it or not, our impatient is a real challenge that can hinder us from success, this has to be avoided by all means provided we want to be successful.


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      If we consider what is happening in the Forex market then we will realistic that we have been trading without gaining success due to the lack of acknowledgments that success is not cheap, there is something very important to consider, trading is not a game, success is difficult and earning is thought to be quite tough, sometimes trading becomes a very difficult process because we are not certain about what we want, except you gain some experience from the losses and keep trading despite the challenges, discouragement would always make you give up on the business, the wrong method of assumptions that Forex could automatically make us earn without limitation is wrong, the best thought we can have about Forex comes from money management applications.


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