Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus. You’ve tried it for 2 years and lost money. You can try it for the next twenty years, and you will probably continue to lose money. Making money in Forex is extremely hard, even if you find some genius mentor. I think it is time for you to quit trying.

Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.

Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.

There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.

Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: "Go to Forexcrap,com/q2347." The "q2347" is a signal to the Forexcrap site that you are being referred to them by "q2347." If they sell something to you, "q2347" gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.

I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.

http://fxbootcamp.com/

It is a rigged game against the unknowledgable. But it is not illegal or a conspiracy. It is very simple to predict the fear/greed emotions of human nature.

You are doing what is natural, and that is what they prey on.

Trading is anything but logical, normal or natural. Trading is all about entry. If you cannot identify and trade at support and resistance, for example, you will either get in at the middle or the end, but never the beginning of a move. You set yourself at a disadvantage by reacting to price, rather than acting on price.

Then there is the psychological side that most amateurs never address. It takes skill and knowledge to identify important reaction points, but it is yet another thing to be able to hit the buy button when price comes crashing down to your fibonacci level entry point.

If you are jumping on the money train in the middle of a move, the markets will shake you out. Ask yourself this: "Does the market go against you almost immediately after entry, within a few seconds or minutes?" Then you are doing it all wrong, and you need to either learn the correct way to enter the market or quit. Trade at the MA, not when it is extended.

You won’t beat the floor traders, or even equal them, so don’t even try to get in on the first move if you are at all late. But you can get in on the first shakeout (pullback). Learn to get in when price is going against you, and you lower your risk, improve your entry, and have greater potential.

I had similar case but only for few months, now i am doing better.

I had noticed 2 things

The broker you use could have an effect on your trading, Easyforex for me is the best broker

2. Try to have at least one expert advisor, it can really help you make some profit and it will help you see better the full picture of the forex trading

see below

Three Simple Rules To Follow For Becoming a Successful Spot Forex Trader

If you buy $10,000 US Dollars worth of the New Zealand Dollar there is only one way you will profit from the transaction, this is if the NZD strengthens, or the USD weakens or both. There is absolutely, positively nothing else that will influence whether or not you make a profit on the trade. This is true for either type of transaction, cash or online because these transactions are exactly the same. The logic is exactly the same for any currency pair or any online transaction. Almost all currency traders dont understand currency transactions and this is rule number one……..understand cash versus online transactions, they are the same.

After the currency is exchanged or after the order is placed on your forex brokerage platform, absolutely nothing else will influence the outcome. Yet, surprisingly, 99% of forex traders done know this or take this into consideration when they place a currency trade. Its actually quite astounding.

Forex traders, quite simply, don’t know what causes a currency pair to move. If you buy the EUR/USD or NZD/USD or any other pair online all you have available to guide your trade is the useless technical indicators that come with the platform. Technical indicators may be okay for scalping a few pips but you will lose as often as you make pips, and even the traders that use the indicators are never really sure because all of the other traders who use the same indicators use them differently. You can also lose a lot of money this way and almost all traders do. Rule number two…..Currency pairs only move because one currency is strong and the other is weak or both and that is the only reason. Technical indicators don’t tell you this and so forex traders fail continuously with no end in sight. Why?…….. because the indicators came with their platform so they presume that they work without questioning them.

Currency traders fail because they do not understand the basic construction of a currency pair. When a new currency trader looks at the EUR/USD for the first time they view it as a single unit and immediately start to install technical indicators. They do this because the indicators are on their platform and easy to access. This is so completely dead wrong.

The first thing any forex trader must realize is that the EUR/ USD is not one single instrument but it is actually two separate individual currencies. The Euro and the US Dollar are two separate and distinct individual currencies each with its own fundamentals, characteristics, and current trend or direction, and they act independently of each other. These two independent currencies form the pair that is the EUR/USD. It’s like one plus one equals two, you must know what is going on with the EUR all by itself and the USD all by itself to know how to properly assess the EUR/USD. Technical analysis will never tell you this and is worthless.

As simple as it seems forex traders have always looked at a currency pair as one single unit rather than two separate currencies. They know in the back of their minds that its always about the strongest versus weakest but they then summarily ignore it and everything about their trading begins to unravel and they cant even papertrade anymore because the “group thinking” of technical analysis takes over.

Currency pairs are constructed with the base currency on the left and the cross or counter currency on the right. On the EUR/USD the EUR is the base currency. Rule number three…not recognizing that there are two individual currencies in each pair will automatically kill off almost every forex trader before they ever place their first papertrade. But it is so simple and obvious that new traders never consider it, and this can be immediately fixed.

Each currency pair has two separate currencies that must be analyzed separately. You are buying one currency and selling the other when you make a spot forex trade. There is only one way to make a profitable forex trade. When you make a buy entry the base currency must rise or the counter currency must drop or both and you can make a profit, literally, on every trade and do so consistently starting in the first week you begin to do this.

Technical analysis and expert advisors are for brokers, not traders. Technical analysis does not work and there is no proof whatsoever that it does work on the spot forex. Technical analysis cant work on a currency pair because technical indicators don’t provide any information about the two individual currencies that make up a pair, nor does technical analysis make any individual currency measurements. Technical analysis is totally deficient and actually pretty awful if you think about it. This is the problem, nobody thinks about it and everyone seems to ignore the basic fundamentals of currency pair construction.

However forex traders persist in their use of technical analysis and it is to their own risk, peril and eventual demise. Why? Because it’s the self fulfilling prophecy of the forex industry and the use of technical analysis is pushed on forex traders on the trading platforms they use. In this regard brokers are responsible. Forex traders need to stop kidding themselves about technical analysis, it does not work and we all know it. Wanting it to work is not good enough anymore.

There are now some simple but novel tools now available to help forex traders be profitable that measure currency strength and weakness, analyze the parallel and inverse forces in the forex market with real time currency correlations that are reliable. Papertrading with these simple techniques can be performed by any trader, even new forex traders and successful papertrades will occur consistently within the first week and going forward for the long term. These systems can be mastered by almost anyone including people with no forex trading experience. No more ridiculous robots or indicators that have been forced on forex traders.

Novel Tools That Work Every Day

http://www.youtube.com/watch?v=SSZT98TO90U

Mark Mc Donnell
http://www.forexearlywarning.com
Yahoo Level 3 responder