Why is Forex Trading HATED by so Many people?
Forex trading is, for some, the main source of income – even though the knowledge to trade Forex wasn’t easy to attain. For others, on the other hand, Forex trading is something they completely despise, hate, and will never get tangled with.
But why this immense hate? Is it because they lost a lot of money trading Forex?
Well, in most cases, that’s the exact answer. Some believe that trading Forex is an extremely easy way to get rich and, instead, end up losing all of the funds they invested. However, this is not the only reason!
Let’s take a closer look at why Forex trading is hated by so many people around the world!
Steep Learning Curve
Well, it’s because they realize they have no chance of making money and getting rich without studying the market, learning patterns, and so on. Most of them believe that Forex trading implies just the purchase and selling of various currency and such. On top of that, they think that watching the status of certain currency pairs is enough to predict when they’ll grow or not.
Obviously, Forex trading is much more complicated than that. One might be lucky, buy a couple thousand of Japanese Yen, wait for the currency to grow, and then sell it for 30%-40% profit – but this is only 10% of what Forex trading actually means.
They Confuse Trading with Investing
You’ve probably heard this excuse/reason as well while talking with your friends about Forex trading! The issue is that most of them believe in guaranteed returns or, even worse, minimal losses. Of course, this is because they think trading and investing are the same thing and that, ultimately, they’ll not lose all the money they attempt to trade.
The vice versa applies as well. Some think that purchasing a foreign currency is an investment and will wait for it to grow and get disappointed when they find out that their so-called investment has lots its value overnight.
In short, their premise for starting Forex trading is wrong and, when they eventually get disappointed, they blame it on the system and not on their lack of knowledge.
Now let’s take a look at one of the more serious reasons! So many people hate Forex trading because it is one of the most speculative markets out there. Because of this, investors and traders prefer putting their money on low-risk investments rather than on Forex trading.
At the same time, people who were unsuccessful in Forex trading end up hating the system because of the select few that are able to become rich thanks to foreign currency trading.
Overall, due to it being a speculative market, people end up despising it for making so many others believe that it can be a safe way to make a lot of money/profit. Keep in mind that speculation is not the same as volatility. Whereas volatility may cause values to return to their initial point, speculation requires more precise decisions when buying or selling currency.
Too Much Money Needed to Make Sizeable Profit
When it comes to Forex trading, you need quite the capital to be able to start trading professionally and make a decent income out of it. It goes without saying that a $100 investment will never bring you back four-figure sums, to say the least.
In the best-case scenario, the most you’d get out of a $100 investment would be roughly $50, if the market is kind to you on that particular day. Naturally, this is scalable – $1000 makes a $500 profit, while $10,000 can round up a $5k profit in a single day. But this requires sizeable starting capital which many people don’t have.
This is why they hate the market. In order to make a decent profit and still start with only $100, they have to trade Forex very carefully for around six months, until they build a portfolio and decent capital.
Lack of Patience
In the end, it all rounds up to the lack of patience of those interested in Forex trading. Professional traders out there have portfolios that they’ve built in five or more years and, in most cases, they’re barely scratching the surface of decent profit.
Therefore, it goes without saying why a beginner trader with $1,000 in their pocket will quit trading and start hating it once their capital goes down the drain in a couple of (bad) trades.
This is also the reason why Forex trading has such a bad reputation. When beginners can’t make money by directly trading Forex, they end up engaging in schemes and scams targeting other potential traders. Ultimately, many of those that would like to try Forex trading start hating it long before they access a trading platform!
The Bottom Line
So, why is Forex trading hated by so many people? Well, if we look into the Coinexx broker properties, to take one of the reputed brokers on the market, there aren’t any reasons to hate trading Forex on their platform. Why is that so?
Because, unlike the majority that quit trading Forex after a couple of fails, you already know what you should be doing to be successful when trading currency pairs. Moreover, even if you’re interested enough in the topic but still haven’t traded Forex before, you may still have an idea why low spreads are important and why leverage is the first thing you should check on a Forex broker.
In short, every bit of additional knowledge in Forex trading makes you realize that, while professional trading is difficult, it’s not complicated to understand how Forex works and how people are able to make money out of it.
All you need is the will to study the market, analyze graphs, and the patience to wait at least a couple of years before being able to buy a brand-new car using only Forex profit!
Open Business Council offers resources, Trade Finance, business advice, SME Finance and a forum and directory for businesses! Improve your business and use the best digital, financial and funding tools to grow ROI – return on investment and ROA – return on attention!