So you've tackled it by confusing the trading indices and trying to understand the different news bulletins and what they all mean. Suddenly, you hit with a brainwave: "If I take just 10 pips from the market each day and maintain a 100% winning interest rate, then Forex money will be easy!" Everyone sounds very simple and simple in theory, but is such a system really viable? Unfortunately, it's not that simple, but by the end of this article, you'll learn how to make real money in Forex.
The problem with such a simple trading system
It is a common myth in Forex that you need a high win rate to make a lasting Forex trading income. Forex robot traders are very good at imagining a high percentage of the profit system and often advertise 90% or even 95% winning rates on their promotional material. The truth is that you do not need to make a high profit to make money in Forex in the long run. In fact, the most profitable Forex trading systems tend to have a winning rate of only 40-60%.
Another feature of profitable Forex trading systems is that they tend to have far greater wins than losses. This is how a lower win rate is achieved. There is really no point in trading for small profits because you need as many profits as possible to pay for the inevitable losses you will encounter. If you limit your profits to 10 teaspoons a day, sooner or later you will come across a day with 50 or even 100 puppies that you will lose and eliminate weeks of gains just like that.
How To Make Real Money In Forex
Obviously there is no such thing as a lossless Forex robot, so forget about 100% wins and 10 spoons a day. This is a type of failure and frustration in your transactions. If you are not doing well in your trading and you lack a proven profitable Forex trading system to earn a consistent Forex trading income for you, then the best you can do is capitalize on someone else's trading experience. This means recognizing a profitable system through research and due diligence. It takes time to find one, but it's worth it.
The key to making money in Forex is to have a proven, profitable Forex trading system and apply a solid money management strategy to create a sustainable Forex trading income. So don't waste your time pursuing incredibly high win rates or small profitable profits, because your time is much better spent on trading with a proven, profitable system.