The world of forex trading

There are people like you making thousands in forex trading everyday. The volume of money being traded daily in the forex market amounts to trillions, but as I understand it, the greater percentage of those trillions is being traded at what is called the inter-bank market level where large investment banking firms like Deutsche Bank out of Frankfurt Germany, UBS (the global financial services company headquartered in Basel & Zürich, Switzerland), Citi (Citigroup Inc) and others such as JPMorgan, Morgan Stanley, Bank of America, HSBC, the Royal Bank of Scotland, engage in trading large volumes of currency daily.

But of course we’re not concerned about what’s going on at the inter-bank market level in the foreign exchange market. Unless of course what goes on at that level impacts on what goes on in our daily lives somehow; but we don’t understand currency trading on that level quite yet so, we’ll wait for some scandal to erupt that exposes truths about interbank market level corruption in the world of forex trading. From what I’m reading though corruption is apparently not posible; but again, we’re not concerned with that. We want to know how we, the little guy or “retail” trader can make money in forex trading.

So far Forex trading seems to me like it’s more of a game that comes with financial risk, like gambling. I’ve read in several places that 95% of forex traders lose money. That says to me that forex trading is highly risky and that you have a better chance of failing at it than succeeding. In fact I’ve noticed on most of the websites I’ve visited that provide forex trading services they include a warning message about the high risk of loss. I imagine this is a legal requirement because no one would warn you of the risks involved if they didn’t have to; so the fact that it had to be made illegal not to warn people of the risks involved would seem to mean that so many people were losing money the government had to get involved to try to police the lower levels of the industry.

So why would I be interested in forex trading if only 5% of forex traders succeed? Well, as I explained in Learning Forex trading, I became intrigued while working on a website for a client. It isn’t necessarily that I want to get into forex trading. Right now I just want to learn about it so that if at any point I decided I wanted to try my hand at trading I would know how to do it and would understand how it all works.