How difficult is it to make money by trading in the Forex market? How long does it actually take to be able to save your living costs through Forex trading? These important and other aspects will be discussed in this article.
Forex market trading has a number of advantages that make it different from other financial markets. Among the most important features are: super liquidity, 24 hour market, immediate execution and other features. Traders and investors see the Forex market as a new type of speculation or opportunity to diversify because of these features. Does this mean that making money through Aria Investments forex trading is easy? No at all.
Forex brokers agree that 90% of traders end their trade on a loss and 5% of them end at a break while only 5% of traders are consistently profitable. According to these statistics, I do not consider Forex trading an easy task. But is it harder to control it than other areas? I do not think so. If we look at musicians, writers and even other works, success rates are almost the same. There is always a large group of people who never reach the top.
Now that we know that it is not easy to achieve sustained profitability results, the question is why do some traders succeed while others fail to succeed in the FX market? There is no definitive answer to this question, or a recipe that can be followed to achieve sustained profitability results. All we know is that traders who reach the top usually think differently. That’s right, they do not follow the herd, always a separate part of this herd.
Few things separate traders from the top:
Education: Usually they are well-educated to grasp all aspects of it; they choose to learn all the important aspects of this trade. The best traders know that every trade is an educational experience. They also approach the Forex market with all humility, otherwise the market will prove to them one day that they are wrong.
Forex Trading System: Top traders always have a Forex trading system and have the discipline to follow it on a regular basis because they know that the trades that are referred to by their trading systems are the ones with the greatest chance of success.
Price behaviors: These traders incorporate price behaviors into their trading systems because they know that price action is the last word.
Capital Management: Avoiding the risk of collapse is the main concern in the minds of these traders. After all, you can only succeed if there are funds in your trading account.
Psychic trading: They are aware of all the psychological aspects that affect the decisions of traders. They really accept that each trading center has two possible outcomes, not just the possibility of profit alone.
These and other factors are the most important factors influencing the success rate among forex traders.
We know that it is not easy to make money through Forex market trading, but it remains possible. We have also discussed the most important factors affecting the rate of success among forex traders. But the question may be how long does it take to achieve sustained profitability results? It varies from one trader to another. For some, it may take a lifetime without the desired results, and for others, a few years will be enough to achieve sustained profitability. The answer to this question may vary, but what I wanted to show is that successful trade is a continuous process and not just something that can be acquired in a short period of time.
Trading successfully is not an easy task; it is a process that can take years to achieve the desired results. There are a few things each trader has to take into consideration to speed up this process: having a trading system, using capital management rules, learning and being familiar with all the psychological matters and discipline in following the trading system, trading plan and other things.
Are These Simple Trading Mistakes Costing You Money in the Forex Market
The 2% rule is one of the most effective tools in the Delta APP Scam Forex market. To apply this rule, you are using a strategy to reduce the size of your losses during times of loss, and is therefore an important consideration. However, there is a small reservation you should be aware of when using the 2% rule to calculate the forex stocks you will buy. As you know, the number of shares you can buy is determined based on the maximum loss level you will accept and the number of stations you specify. This means that by increasing the risk you intend to carry, you can also increase the dollar value of the Open Trading Center. Simply to reduce the loss that means placing close stop orders, you are reducing the value of the trading center you intend to open.
To avoid this situation, which could lead to the activation of a large number of positions, which in turn may put your Forex trading at stake, you can build an additional base. This rule will limit the dollar value of the financial position so that it does not exceed a certain percentage of the total balance of the account in which you trade Forex.
For example, you may decide that you will never open a trading center with a dollar value above 25% of your account balance. This rule can be implemented only after calculating the equation that determines the number of shares to be purchased. If the dollar value of the financial position is greater than 25% of the balance of your account, then you will reduce the value of the financial position to not exceed the 25% that you specified.
The percentage you decide on will depend on the quality of the system through which you are trading. Also the size of your trading account and your personal ability to bear the risk. In general, small-size Forex accounts use 25% while large Forex accounts may not exceed 10% or 5%. There are no conclusive numbers in this regard and the percentage you choose will depend mainly on your personal circumstances.
Once this trend is corrected, all capital management rules will have to be present to be ready for risk management in the Forex market. Now you need me to take the next step. Test your trading system to find out which variables are right for you and always remember that setting the size of the financial position is the most important stage in building and designing the system. Because they represent the backbone of capital management. Once you have completed your system test and refined your trading rules, then you are on the way to becoming a successful trader in the Forex market.