As a trader, it is incomplete if you don't know the forex trading facts. This trading market is the largest financial market in the world. This is not tightly regulated and is largely controlled by the forces of global market supply and demand.

Since most retail currency exchanges take place online rather than on specific exchange markets, this makes it accessible to anyone in the world with an internet connection. The number of market players has generated many myths. You can find them in online forums, in newspapers, or even when talking to friends at your favorite places.

Forex Trading Facts: Brokers in the World are not the Same

Your broker is a vehicle tool that will direct you to profitability or loss. So, you have to choose which broker to choose very carefully. Unfortunately, although you may find many brokers use the same trading platform and offer many similar products and services, please be aware that every broker is different. You can choose Didimax forex broker because we are a trusted broker you can rely on.

Brokers differ in how they operate, how they treat their clients, and how much they charge in terms of spreads. Apart from that, some of the best forex broker is more connected with the big market makers and these are the ones who can guide you to the best and highest profit levels.

Overtrading is a Recipe for Failure

One of the common mistakes that the majority of new traders make is over-trading. Most of them feel that every minute they spend away from the forex market is a lost opportunity. Other traders tend to get into various positions thinking that this increases their chances of profitability. 

One of the forex trading facts is that many other traders have suffered losses on one trade and in an attempt to recover from the losses enter into more trades without giving it much thought. In some places, this is known as revenge trading. 

Another form of forex overtrading is when a trader holds a losing position for too long in the hope that the waves will change in their preferred direction. This only adds to their losses.

More than Ninety Percent of Forex Traders Lose Their Investment in the First 6 Months

To many, it looks like a pot of gold just lying at the end of a rainbow waiting to be picked. Abundant stories of untold wealth, financial freedom, and total lifestyle changes come from successful traders who started out with nothing to inspire these dreams.

However, for most people, this will just remain an unfulfilled fantasy. The shocking truth of the market is that only about 5% of traders make a profit trading their currencies. And of these, less than half are able to fully live off their profits. One of the forex trading facts is that more than 95% of traders lose their entire investment in the first six months.

This is mainly due to the failure of beginners to first study the market and adopt a winning strategy before investing their money. The most successful traders don't make instant profits, they analyze the market, make trades, and make small profits on each trade.

These simple profits are then reinvested into online currency trading and used to earn more small profits. In this way, the trader ends up with a very profitable online account. Such astute traders might start with a micro account as small as $50 and within a year or two, you will find they are living comfortably just on their income.

Conversely, the failure of the forex market to make big profits in a short time and ultimately fail miserably. Other than the strategies, you must also aware of forex trading facts to give you more insight, so you can take the best steps in trading.