Though the global economic environment continues to show signs of improving, investors of all stripes may still be on the hunt for retail investment alternatives to traditional plans for a way to diversify their portfolios. Many are turning to the currency markets to learn forex trading. That’s why we are offering free webinars for our clients in the United States and Europe designed to transform traders’ understanding of the markets with live insights and extensive commentary.
Statistics show that the initial success for new forex traders is disturbingly low. Over time, this trend tends to improve, but for many, it is too late. After posting a series of losses, a lot of new traders will give up, believing that forex trading is simply not for them.
Since retail forex has only been offered directly to the public within the last two decades, it is still a relatively new concept for numerous investors. Thus, there is a need for the industry as a whole to educate the public on the potential benefits and definite risks involved with trading forex.
Why new forex traders lose money
We continue to emphasize that our fxTrade Practice platform lets clients trade with virtual cash until they feel ready to trade on a live account with real money. It may be worthwhile to have your fxTrade Practice account open while attending the webinars to explore the features and concepts that are discussed.
There are many reasons as to why new forex traders lose money ranging from a lack of discipline and unreasonable expectations, to trading with excessive leverage or not adhering to sound cash management practices. Like any form of trading and investing, forex too has a learning curve, and it requires time and dedication to grasp what moves the currency markets as well as basic trading principles.
Discipline is a necessity for any new skill you wish to learn. By using fxTrade Practice, you will see how this volatile market reacts to unexpected global news events and anticipated economic data releases such as the monthly nonfarm payrolls reports issued by the U.S. Department of Labor.
Understanding the forex market
For most investors, the primary motivation for trading currencies is to make money. Yet taking a profit-focused approach to forex is a dangerous proposition, and most often, it is the No. 1 reason why people fail as forex traders.
To realize any level of success as a forex trader, the smart approach is to do everything you can to protect your capital, and become more defensive-minded and conservative while adhering to key risk and money management techniques.
Whether you’re new to forex trading, or an intermediate or advanced trader seeking a greater understanding of technical versus fundamental analysis, you may wish to register for the OANDA fxWebinars that interest you. If you have a question or comment, please leave it in the box below.