There are no secret why this group of 5% can make money. In fact most of my blogs give a very clear picture on how the Forex market works. There is no short cut, it is just like other type of investment (stock market, mutual fund or even property), you need to know the basic rules. A lot of people jump in the game without apply the basic rules. (Can you use mutual fund style in FOREX? certainly a BIG "NO"). Once you can conquer the basic rules, you must like the game. It is just like any other games and great players; i.e.Tiger Wood hit 6000 balls per day to make him the indisputable world champion. Please don't get me wrong and trade as many as you can in Forex. (The rules in Forex is totally different with golf!).
Most of the players play Forex by treating it like a casino. They think their bets can give them 100% return instantly. Once their bets is right for few times continuously, the "GREED" horn starts growing from the head, they start high leveraging. Then... you know the ending. It is like the same scenario happen in the casino, you will see most of the players lose all the money and the house will always win.
For those who have the Forex account, do you notice there is a very small printed Risk Warning under the customer agreement stated "Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts."
My advice to those who want to trade Forex themselves read and fully understand every single word under this small printed clauses. It carry a BIG meaning before you go in to this "Dangerous BUT High Reward" game. If you think you are not suitable to play this game, stay away!
