Forex market is all about probabilities
July 14, 2017 at 11:53 pm #1139
How much you know about the market of Forex? Many traders will answer they know everything about Forex. They know when to enter the market when to exit, which platform to use to trade in the market and many other things. However, every single one of them has ignored the fundamental concept of Forex trading. This trading in Forex is all about possibilities. There is no Easter Bunnies, there is no Santa Clause and there is no Holy Grail. It is only the probability that can give you money. You can take help from your working strategy in the market, but it will not save you every time. You have to accept small losses just like the professional Aussie traders and make money at the end of the month. You cannot do anything about your losing orders since it’s inevitable. If you do not accept that this marker has the chance of probability to distribute its profit among the traders randomly, you will have a very hard time in making a profit.
Why there is a probability in Forex?
We are glad that you have asked us this question. The reason cannot be specified clearly but masters in this trading market believe this market is very large which makes it uncertain to predict, resulting in the probability of this market. If you are thinking if this market is all about probabilities, why I am not making money? Because you do not have the right money management. For example, you place 20 trades in the market. As you know there is a probability in this market, you will win 4 of your trades in the market. Let’s say you win a profit of 4 dollars in these trades. Each of these trades gives you 1 dollar profit. But you have lost 16 trades and if you only lose half a dollar in your every losing trades, you will lose 8 dollars from your account. You will be at a negative figure in your bank account. Though you have made a profit, you are in loss. That is why expert traders at Saxo always say not to overtrade the market.
When you are placing more trades in the forex trading industry, you are only risking your money in your account. Probability does not say traders need to place thousands of trades to make money. Place a small number of trades, understand the market trend and closes them at the right timeframe, you will have your profit in Forex. This is how Forex trading works. If you take a professional trading course then you will see that the main gist of the course will be quality trade execution. Quality is always better than quantity in the world of finance. In order to become a profitable trader, you need to focus on the development process. Make sure that you have solid knowledge about the financial market and based on that try to develop your own trading system which will allow you to execute high-quality trades only.
There is saying that those who follow proper money management will never lose money in trading. To be honest its 100 percent true. If you trade the market with the right trading strategy and aim for high-risk reward ratio trades then even after losing more trades you will make money at the end of the month. No matter how convincing the trade signal is trying to follow on proper risk management in every single trade.
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