Why is Forex Trading so Difficult?

by MATT JONES

I’m sure that you have seen websites offering some easy trading method to earn you money. As sure as they exist, it is equally certain that they don’t work. Of course they will work to a limit, but you will see that your account does not increase in money. Why is that?

The reason is that the forex trading can be considered to be a zero sum game. A zero sum game is one where you are competing directly with other people. Trading is not like a computer game where the company structures it in such a way so that there is a reasonable chance that you can win if you try hard enough. Rather it is more like chess where you are looking into the eyes of the person who is trying to destroy you! When you lose money, this is because someone else is taking your money. As a result, easy trading methods offered online cannot work, because if it was that easy, someone else would beat you to the money.

As a result, anyone planning to make money from trading needs to realise that it requires a lot of hard work and study. You have to know more about a graph than anybody else. The logical conclusion is that you learn the character of one graph only and not forex generally. The patterns on a graph may look easy, but they are actually very complicated (although not impossible) to understand and therefore predict for future forex profiting.

For more practical tips on Forex Profiting visit ForexProfitingTips.net and learn how to create a Forex Trading Strategy using the fibonacci sequence.

Investment article from http://www.amazines.com/