Fx - Mindset - someone who doesn't know much about Forex, but is a very good investor - be it in real estate, gold or other financial instruments. This is really important because the whole fortune of your forex trading endeavor depends on the expertise amp honesty of your broker. In case of normal exchange traded securities like stocks amp futures you are dealing with the Stock Exchange amp the risk of contract for buying amp selling of securities not being honored by any party (Yourself or the Exchange) is NIL. The exchange takes the guarantee that all the contracts are honored as agreed between the parties involved. In case of forex trading, in the absence of designated exchange, the risk of default from either side is high. Before continuing, I want to make a distinction between trading and Professional Trading and specifically how this applies in the Forex Market. There really is a huge difference There are many people who trade, either actively or passively. But the vast majority trade without any trading education or a structured approach to the market. Trading in general (which is non-professional trading) typically consists of. In an ideal world, every Forex robot trader in the market would be capable of making significant profits in the Forex markets without the risk of wiping out trading accounts and breaking down when market conditions change dramatically. The downfall of Forex automatic trading is, not surprisingly, the human factor. Given that it's very easy for anyone to throw an automatic Forex trading system together these days, combined with the fact that selling them is a very lucrative business, there has been a rise in unscrupulous developers putting out robot traders that are at best poorly tested and at worst an outright scam. If you do a quick scan of the robot trader marketplace, you will find that most of them promise extreme returns of 100% in a matter of weeks or even days. They have a live Forex trading environment open 24 hours a day and you are guided by their professional traders ever step of the way. Remember, wherever you ultimately jump on the buzz of the Forex market, select a program most suited to your lifestyle and goals. Forex is the quickly becoming the part-time business of choice that is supplanting peoples 'day job' salaries. Happy Trading. Here are some examples Crown Forex SA based Switzerland went bankrupt in May 2009 U. based Refico went bust in October 2005 and you can find many more in the media. So how to protect your fund when your broker goes bankrupt - Firstly, selecting brokers who put your fund in a segregated account from their firms' ones only. In case of bankruptcy, your fund would have a higher chance of being returned to you. In essence, being disciplined allows the successful Forex trader to show profits consistently and rein in losses should any trading period turn out to be a rough ride. Protect Trading Capital - The serious Forex trader treats hisher trading money very seriously, as it is what enables trading to be done. Additionally, it is also the objective of Forex trading make winning trades to grow the money. Thus, the successful Forex trader will guard hisher capital zealously, ensuring that risk per trade is controlled so that losers only erode the Forex account, not chew a hole in it.
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