Why Forex Traders Need a Business Plan (Just Like Any Business).
Forex trading can be a great way to make money. However, it requires a substantial commitment of both time and resources. Some of the costs of getting into Forex trading include:
Broker commissions and fees
Sophisticated computers
Advanced software that can perform detailed analysis
Research services
Losing money on bad trades (this is inevitable I am afraid)
The foreign exchange market is the largest market in the world. More than $200 billion worth of trades are conducted every day, which means that traders have a substantial opportunity to make a lot of money.
However, Forex trading is also very risky. It is a zero-sum game. This means that every dollar one player wins will be a dollar another player lost. Forex traders will either win big or lose big. You also need to keep in mind that when you are trading on the Forex market you are betting against some of the biggest sharks in the financial world. You definitely need to know what you are dong if you are going to operate a Forex trading business.