The foreign currency market is the largest market in the world with 5 trillion dollars trading every day.
Many traders are making a lot of money from buying and selling.
Most traders lose money. Only the top 10% are making money and half of those are doing very well.
Trading on this market is risky because the market is manipulated by 12 large banks. Suddenly the price can go in a different direction than what you thought, and it can go a long way. When covid came in 2020, I was trading the aud/usd pair and the price suddenly fell all the way down to 0.55. Later it rebounded and went up to 0.75. Prior to that I had thought that 0.66 was its bottom and I placed trades accordingly. I lost all those trades.
Robots
A lot of people sell robots or eas or expert advisors which are software programs designed to automate trading. Some of them work sometimes. When you read the advertising, you become convinced that this robot or ea will be the winning one for you. But when you put it into practice, you find that it doesn’t do what you were expecting. This is partly due to the fact that the ea or robot was tested on the basis of past data. Past data may recur in the future or may not. No guarantee. So based on the past the software did well. But the present and the future are not the past. Today is tomorrow’s past. I wasted a lot of money buying these.
Trading Signals and Indicators
A lot of people sell these and advertise how good they are. Again they work sometimes. But not all the time. I have wasted money buying these too. One indicator you could try advertises 93% accuracy.
The Best Way Forward
Trial and error. I have tried lots of different methods and each time I experienced failure, I learnt something that doesn’t work so I was better off. I have developed a method of trading that does work, but it is slow and needs a certain amount of trading capital. For me it is a matter of developing a trading method that works whether the price rises or falls. There are thousands of indicators and robots and strategies. You might develop your own unique one. The fact remains that the potential rewards of success are high. But also the potential failure and loss is also high because people are greedy and stupid. My advice is trade with 0.01 and only with money you can afford to lose.