In Forex, countless people participate daily but only a few could make money. The majority lose their capital within a few days. There is even an infamous saying of “90-90-90 ratio.” In brief, this implies to people and their quitting days based on their losing capital. You can search online to learn more but in this article, we will not be focusing on failure. Instead, we will provide some useful tricks that can help an individual to stand out from the community. Millions of people are trading but winners are limited. If traders don’t bring their A-game, this is an impossible task to complete. Yet people still invest and many win temporarily. If you are tired of getting inconsistent results, this article will help to reduce confusion and clear the mind. What is needed is only willpower and perseverance to become a winner.
Forex is a zero-sum game
First of all, you need to understand why failure takes place continuously. It doesn’t matter if you’re trading with Oanda, eToro or any other broker if you’re not understanding it correctly. One risk-free method is to use your broker’s demo account if they offer it. So does eToro have a demo account? The good news is yes and it doesn’t expire so be sure to take advantage of it to learn how to manage your capital. Even a successful investor frequently loses capital which prevents them from building positive capital. After winning a few orders, some trades are lost and the balance is reset to an earlier state. In this way, trading can never be consistently profitable.
A zero-sum game means every winner must be matched by a loser. The money that is being made does not come from the market but the account of an individual. Remember, the balance growing negative during volatility? If a trade is closed at that point, the money goes into the industry. This fund is distributed among winners who are profiting based on losers’ accounts. Investors need to understand this concept to learn the tricks to win.
Losing trades are inevitable
Before you start taking the trades in the CFD trading industry, you should read more about the professional broker. Use a high-end trading platform so that you can do the advanced market analysis with a high level of accuracy. Trade the market with low risk because losing trades are inevitable. Maintain a high risk to reward ratio in each trade as it will help you to protect your trading capital.
Inconsistent following of methodical trades
Customers are lured by offers in Forex. Every broker offer bonuses to attract customers and many fall into traps. For example, a deposit bonus is awarded to inspire clients to invest more. In this way, people slowly get distracted from rudimentary techniques. Instead of relying on strategies, they start to focus on using the bonus as a viable strategy to grow the fund. Many even buy premium signals to reduce the burden of analysis. All these tasks distract them from their goals and traders eventually lose the fund. So, read more about the disciplined approach and trade the market with a stable mindset.
Some of you might expect to make a consistent profit just because your trading system is complex. But having a complex trading strategy has nothing to do with your profit factor. If you want to stay in the market, make things simple in your trading strategy.
Why do they win frequently then?
The reason they have few wins is that they often implement the fundamental concepts. But soon after making a profit, they revert to their former strategies to get rich. This vicious cycle never ends and people are trapped in limbo. Gradually, the investment decreases and they realize they have come to the end of their trading venture. They don’t want to endanger more capital and decide to quit. This is why trading can never make them profitable professionally.
But losing is inevitable in Forex
Of course, it is but not when it puts your capital at stake. General traders make general decisions and have common outcomes. Trading rarely makes a contribution in their career. Their account never grows and remains the same throughout the period. Failure slowly cleans out their fund. Successful investors slowly enrich their knowledge and develop their fund which becomes a major part of their lives. If it goes well continuously, many become professional currency traders. To become a winner, learn to avoid or lessen common errors and make improvements to your strategy.