By: Alex Harper
Submitted: 2011-02-01 06:17:59 | Word Count: 390
Many people today are looking to create extra income through forex trading but the sad fact is that most will lose money and quit within 2 years. Forex trading is a business and the statistics for new businesses are tough. Over 90% of new businesses fail within the first 5 years.
There are so many things to consider that it requires an education just to be able to evaluate a forex trading system and whether it works for your psychology. As a beginner it is usually very costly to pay for high priced systems, lose your capital and repeat the cycle.
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Before thinking about which type of course would be a good match, first you should use a process of elimination. The majority of courses sold online are inaccurate at best and outright scams at worst. Often people will post dishonest reviews of products to gain affiliate commissions.
Another reason why a forex trader may lose is that they do not spend enough time evaluating their system. It is a good idea to go backwards in time to see how your system would have performed over a larger period of time, like the last 5 years.
Since you're not going to be trading 24 hours a day, you should consider the time of day that you will trade. If you want to have consistent results then you should trade during the same hours each day and backtest your system for those times. Make sure to take a scientific approach with the testing so that you can have confidence in the results.
It's important to be confident in your strategy so that you don't experience fear when you're trading. There's an old saying that "scared money never wins", make sure that you are confident in your winning percentage as well as you're discipline to stick to the plan.
This forex business is about having an edge, not about winning 100% of your trades. Since you are going to lose a certain percentage of the time, it's important that you take a really consistent approach to your trading. This will elimate the majority of losing streaks assuming that you have tested and found a system with a strong edge.
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