How true it is, not every trade does make money. Traders, after analysis of various inputs, reach a conclusion, and enter the trade. The analysis can include a myriad of inputs. Initially, most traders tend to rely on technical analysis, probably because it is easier to get a rudimentary grasp on the markets behavior. Since price action, as portrayed in a charts, is the summation of many different inputs, this is a logical starting point.
Sometimes we look at a chart, and envision a formation, and conclude the price will go to a certain objective. Accordingly, a position is taken, and the result is profitable; this leads to confidence and interpretation of other formations. And, yes, we all know how this ends. Making money on our first few trades can be costly. We think we are a trading natural and then losses occur in both our money and our confidence. It is time to go back to the analysis room.
Then it gets confusing. There are so many inputs from so many different sources. Markets can be driven by fundamental economic events, news releases, various central bank policies, and most of all fear and greed.
That’s why resources like BabyPips.com and ForexRazor.com are so important (and free): there’s a world of a difference between gambling and risk-managing your ‘wager’. If you are going to survive as a trader you must learn, as they say in the song “when to hold them and when to fold them.” Further, you must examine what caused you to initiate the trade and then learn from your losing trades.
Therefore, one must properly consider these factors before making a final decision. Its not all the time that these factors act to disrupt our plans, but when that happens, we surely lose. A trader who is careful enough and not driven by a measure of success on previous trades will see beyond the charts.
Unfortunately, it doesn’t seem like many of these lessons are easy to pick up without actually going through the process. I know when I was learning I had a difficult time grasping just how much information was actually going into price movements. Even now I don’t know if I have a “great” grasp of it. But I know I did learn that past success is no indication of future success and went back and forth for quite awhile. Just have to keep working at it and working to refine one’s approach I suppose.
Irrespective of the trading system you use, you’ll go thru periods of winnings, roll-downs and flat performances. During these periods, you shouldn’t feel discouraged or dejected; eventually you’ll recover your losses and move ahead. Now and then, market wizards’ performances are punctuated by periods of negativity, and there’s no way around this. Ultimately, most of them (especially those who’re good at risk management) would recover their losses and move ahead.
This is actually true. No matter how good your method is, a time for loss will always come. The forex business is not a risk free business. Any little mistake can cost you big.
Nothing is risk free, but just understand that you as the traders adds risk to your trades and that the market in general is essentially a risk free environment. The lack of knowledge by traders, wrong analysis and other mistakes add risk to their portfolio.
Have you every heard anyone claim a 100% success in forex. That is ridiculous, no one can say that because in this business, everyone loses. Its only the good traders that knows how to minimize their loss and profit more.
There are so many inputs from so many different sources. Markets can be driven by fundamental economic events, news releases, various central bank policies, and most of all fear and greed.
This is certainly true that every trade which we take can not be a winning trade because of so many factors which will influence the trade to win or lose.
Those who claim to be 100% are either advertising a training school or they just want to make name for themselves. The true it is that almost all traders knows that 100% success in this business is impossible. As long as our imperfection continues to be with us, there will be no 100% success in this business
I’m guessing who ever claimed that haven’t tried enough of his or her strategy.Maybe he only used it for 3 weeks and claimed 100% success.How about trying it for a year…
Or they’re idiots whose words should have no bearing on how a person utilizes their money for profitable gain. It’s funny because I’ve ran across a lot of people in my life who claimed to do this or that to get money and they were always broke. A person gets real results by getting on the grind and using their own mind.
It’s definitely not just a forex thing. TheLastBear has it perfectly right.
my very small lot sizes and risk control techniques. I got to cut my losers, or else I’m in trouble. I just make the losses to be so small, so that whenever the market conditions become ok for me, I shoot ahead. For example, if I win 10 or 15 trades in a row, I gain about 10% or 16% or even more.
