Hard and smart work lies behind it.
2 min read
Forex trading is profitable but the market isn’t endless, you have to know that.
The size of your trade has an important impact on how you can bring a trade out.
Don’t look at the percentage of what a so-called pro-trader does. People like to think in percentages way too much.
Percentage of what?
When you start, you can have someone who would be your ideal or paragon. But you always have to keep in mind that such trader is already experienced in trading.
She or he does some things spontaneously, and you are the one who just stepped in on this scene. But if you’ve mastered some trading skills and have tested them well on some free demo account, you may have even one advantage.
The experienced traders have more money, it is a blessing and a burden at the same time. But you can be more flexible to trade with high precision very close to how the market moves.
What I want to say is, you should never underestimate a “small” position. Forex trading is profitable even in that situation.
For the FX market, you can be small fish.
But that “small fish” can make a couple of hundred USD per pip. Is it good enough for you? Well, that’s why comparing percentages without comparing the actual pot is an unnecessary exercise.
But it isn’t easy. Hard and smart work lies behind it. Of course, you have to involve a bit of luck to find the right stocks, right things while your motivation is still on the top. But when you make any success, you will see it is worth it.
But you have to be dedicated to trading in order to be able to trade when markets move the most. If you live in a European time zone it is from the early morning to the afternoon. But if you live in some other part of this lovely planet I would recommend to your attention, one of my older posts.
Some traders said: I’m trading short term on the 1-minute candlestick chart.
Take this as a recommendation:
Average holding time depends on what the markets offer you but it is rarely under 6 minutes and rarely over 20 minutes.
Stay focused on reversal signals and have pay attention to good ones and fake-signals apart. Support/resistance areas play a role but you need to practice to be good at it.
You have to treat trading as a profession or a business.
Only in that way success will come.
Why I’m saying this to you?
I have a friend. Forex trading has been an expensive venture for him, indeed. In his first 2 years of trading, he lost $30k. He almost went bankrupt because he was naive and greedy. His main problem was, he entered at the wrong time and exit at the wrong time. No matter what he did he was always on the wrong end. At that moment we couldn’t talk about how forex trading is profitable, right? This improved drastically when he found his own method. (And maybe this is the secret of any successful trader.) Now he has been profitable for over 15 months.
Forex trading is profitable but not for everyone
But I’ve seen a numerous amount of people lose everything in trading.
Hundred and thousand times you should ask yourself:
Why do I trade? To become rich? Is it a hobby?
Do I love it or I hate it? Is forex trading harmful to me?
Why I am forcing myself to all of this? Just for a chance to be a member of the profitable 5% club?
Did you ever hear the saying: “If you don’t know who you are, the market is an expensive place to find out.”
And the most important question is: Is trading really worth the effort invested?
Trading attracts mostly because of the freedom it provides.
Trading Forex isn’t a “get rich quick” method.
With constant profits in order to make enough money not only to live but to build up a constant surplus.
So, you can move on with your plans and plan your life. Maybe your focus on how much money you can make per year isn’t the best.
You may think you can see better, you know better and you can believe in that. But that is a great paradox and tiny line.
If you cross it, it can be the biggest tragedy. In every single moment, you have to take care of risk control.
It doesn’t matter what you see or you think you know.
Risk control! Double check! Opened eyes! Use the excel.
Sometimes, even the things you wrote before can be very helpful. Having some downloaded system is useful but money management is KEY to success.
To gain knowledge of how to make a profit is much much more than what you can learn from a job in the corporate world.
The knowledge has to be the goal.
Yeah, I know. Time is money.
Forex trading is profitable for me.
Is it worth it? Yes!
Should you continue trading? Yes!
Should you continue with your studying? Yes!
Should you continue looking for a job? Yes!
Can you manage to do all of these things at the same time? It is up to You.
The main factor for success is your permanent education and training. You have to believe in yourself and find what works for you.
The only thing that brings you to your failures may be your ego.
And if you aren’t ready to keep going after a series of losses, Forex probably isn’t for you.
Waste your time. Not your money.