The One Thing Your Online Forex Broker Isn’t Telling You

Written By: admin on March 11, 2010 No Comment

If you’re interested to start forex trading, one of the first things to do is to sign up with a good online forex broker.

Due to tight competition, forex brokers today offer all sorts of incentives for you to sign up with them, such as tighter spreads, trading competitions, bonuses after a certain number of completed trades, etc. We all know that forex brokers derive their income through the spread, but how many of of us know that many forex brokers actually have an alternative, even better income stream?

The secret is that your online forex broker probably places an order opposite to the one that we have placed. Yes, they are so confident that we’re going to mess up that they actually place an opposite order. And they have statistics on their side too. The fact that 95% of people lose money in forex trading is that they don’t mind paying out for the 5% winners.

And how does the knowledge of this practice help you? The idea is to open your eyes and start practicing to be the 5%. Stop making wild guesses with where currency prices are heading or listening to your friend with the “hot tip” that almost always disappoints and start educating yourself.

Preferably sign up for a forex trading course before doing anything. Start reading up on forex strategy, money management, trading psychology, fundamental and technical analysis, etc. Yes it’s hard work and that’s why only 5% of investors succeed. Don’t let anyone fool you that making money through forex trading is easy, if it were that easy, all of us would be millionaires by now. But if you work hard and follow the rules, very soon you’ll be making an income far greater that what is possible with an average day job.

And you will have the satisfaction of beating your online forex broker at their own game too. How cool is that?

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