Do Forex Option Traders Really Make Money?
Forex options trading is the newer form of trading online. It is often said that the easiest way to get $1,000 in Forex is to start with $5,000. This is obviously a humorous quote, but points to a larger issue that is not a joke.
More than half of Forex option traders lose money – many of them losing significant amounts of money. So, it is not surprising that a question that comes up a lot is “do Forex option traders really make money?”
I’m not saying that it isn’t possible to make money in option trading. In fact, plenty of people are making money through option trading on daily basis.
The fallacy is that it is ‘easy money’. Typically when someone signs up to start option trading they do so under the false illusion that it is an easy way to make money.
They are sold on expensive courses that feature rich millionaires in their yachts talking about how they do not work but still make lot of cash.
That very well may be so. But it is highly doubtful that some rich millionaires weren’t working their butts off at some point in their life. It is also highly likely that those millionaires have lost huge amounts of money while learning how to succeed in what they do. That is the nature of the game.
So back to the original point. The lifecycle of a typical Forex beginner looks something like this…
-Got excited by a course that promises quick money and easy living.
-Sign up for a Forex broker without ever doing any further research
-Blow through a large amount of money in a short amount of days
-Conclude Forex is a scam and no one makes money
Meanwhile, the top Forex option traders are using tried and true systems that they slowly developed or learned through much trial and error, and are making consistent profits every single day.
Those people that are ultimately successful have typically tried a million things and lost a lot of money and time in the process. The only way they were able to discover something profitable that worked for them was by trying things over and over again that didn’t work until they found something that did. Sure, they aren’t out there preaching about all of their failed systems and all the times they lost money, but who would be?
If I were to start over trading in financial markets with no knowledge there are a few key places I would start.
First, I would start reading trading books and anything else that gives the theory behind trading in financial markets so that I get a through understanding of it. This is key to successful long-term trading.
Second, I would join every Facebook group or Reddit thread that talks about Forex. I would ask questions constantly in those groups. I would also be respectful and try to help out answering any questions that I could to those that knew even less than me.
Finally, I would find people I trust and ask them for reputable option brokers and courses that I could take. This one is probably the biggest key to becoming a successful trader.
There are probably hundreds of Forex courses online. Find courses that are taught by legitimate traders with great systems for making money and who have a willingness to help out other traders.
So in conclusion, yes, people make money trading Forex options. People also lose money here. The difference is a mindset. People that make money understand Forex option trading is a business and a hard one at that. They don’t have an easy money mentality. They overcome failures and eventually win.