Well, it's December and we all like to sit down a bit and enjoy a warm cup of tea these days. So I decided to write a few words about success in forex trading and things that are related to that. It's my first article so I expect some feedback from you.


Before I start explaining why it's hard to succeed in forex I must remind you that every trader should see financial trading just like every other type of business. I always looked at different things in a bigger picture, because it helps you understand how stuff work in general. We live in a world where literally everything is about trading. You can buy/sell services, a product, maybe knowledge or your time. Same goes with forex and other forms of trading.




Let me give you an example:

I started a company. First, I buy some basic materials from which I will make a product and then sell it. Then I would want to find a market and get to know it. If my product has a lot of buyers that means a lot of profit. You sure spotted some similarities here that are connected to forex. A currency pair like EUR/USD could be for example HAIRDRESSING EQUIPMENT/SERVICE. So basically you buy the equipment and you have the »material« to work with and offer hairdressing services. A number of customers can be viewed as pips.

And here we come to the final question. What is the difference? If all is the same, how could it be so hard to make money in forex? Well, I think the answer lies here. In financial trading you have to decide to buy or sell an instrument and then gain as many pipsas you can. On the other hand if you want to sell a product you know that the price of that "material" has risen, because you improved it, so you just need to gain buyers (pips).

It's also about controlling the market or predicting it. If you want to start a company you have an easier job. You can always stick to the economic model of supply and demand and then decide which product or service to sell. In forex trading you can see everything happen anytime.





But let's not completely forget about advantages of trading: the fact that you can earn in selling or buying is pretty cool. And leveraged equity sure falls in pros section. Forex market is also a lot bigger and that also means that if you succeed, you succeed big time.
But you have to work hard for it. It's up to you to decide what suits you best. You can play your cards safe and choose the easier option. However, I chose the exciting one.
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