A lot of fresh FOREX rookies mix two different basic terms up as if they were the same thing. If you also thought that “Trader” means the same thing as “Investor”, you can’t be more off beam, and I’m sorry to tell you that you have started the foreign currency market on the left foot. Don’t be embarrassed though, I’m sure you are just one of many. Mixing those terms has led many people astray; this general misunderstanding comes from the common belief that everyone can “win” this competitive field called the FOREX by becoming be an investor as an alternative to working.

Every experienced investor will tell you that the “beginners optimism” will fade away and you will soon realize that not everyone can do extremely well on those FOREX trading areas. To make things clear, these are the right definitions for “Trader” and “Investor”: A trader's purpose is to accumulate a fortune. Traders are personally in the front line of FOREX and fight their way by making the investment decisions themselves, such as option trading, using their own judgment. They execute a series of trades in effort to gain profit out of it. An Investor puts his money where it can potentially produce a profit, investors are usually buyers of real estate and buyers of funds.

An investor does not get involved in the money making process, just like a silent partner. It is a fact that not any one can be a successful trader. It is a job that requires a lot more than just financial skill to make enough money to turn it your monthly income, especially nowadays when there are a lot of charts and strategies available that are highly subjected. On the other hand anyone can be an investor by putting their money on any portfolio they suspect as profitable. Being a trader is the hardest thing, particularly if you are not an experienced trader with a proven system to follow. Before diving into the FOREX world, think what interests you and choose between being an investor or a trader. If you choose to be a trader, keep your day job until you find a proven system and enough FOREX background knowledge.