Many people believe that Forex trading from what they read in the media but the reality of currency trading is very different to what they read. 95% of all traders fail miserably and lose all their money quickly and only 5% of traders win and they don't believe what they read, let me explain in more detail.

First of all, lets take a look at what I will refer to as the "serious" media which consists of the bank and brokers, who talk on the major news wires and TV channels. These so called experts that most traders listen too give information which actually causes traders to lose - so lets look at some examples.

Banks and Brokers Opinions on Major News Stories

You hear a lot of analysis from banks and brokers, on what may happen when major news events occur like non farm payroll and traders trade off this news. However, often do currencies respond by going in the opposite direction to what the experts predicted?

Most of the time! These experts then after the event, tell you why it happened but that's no help when your trading. In addition, expert opinion tends to be most bullish when a market peaks and most bearish, when the market bottoms. In conclusion, if you could make money following news the majority of traders wouldn't lose money.

The Most Ridiculous Statement Made in Forex Trading!

A really ridiculous statement which is always made in the media is the reason given by bank dealers and economists, when a currency falls and the reason they say it fell is:

"On profit taking"

Funny how a market ALWAYS falls on profit taking! This is obviously not true because it's a well known fact that 95% of traders lose. The experts you see in the media reflect the majority opinion and always keep in mind the majority lose money trading currencies. These experts are not giving sensible trading advice, their just telling stories. If you take what these experts say and try to trade their advice, you will lose money.

The "Selling" Media

After the "serious" media, you have what I will refer to as the "selling" media and this group of people, are simply out to sell products. They know that if they appeal to greed, they will sell more. so they don't full tell the truth about the product their selling.

The selling media present a view of Forex trading which is one in which anyone can make money easily. All you need to make money is to follow an automated software package and you are guaranteed to make money.

The statistics on how many traders lose, proves there is no easy money to be made in Forex trading. The "selling media" is a group which are simply out to sell as much product as they can, to a gullible public.

How to be a Winner

In conclusion, don't follow or believe the above two groups! Do your own research, use charts, to follow price action with a simple system and if you have done your homework, you could be making huge profits in under an hour a day.