So you've dealt with confusing trading metrics and tried to figure out the different press releases and their meanings. Suddenly, you will be shocked by your mind: "If I only take 10 points from the market every day and keep 100% equity, then it is easy to make money in foreign exchange trading!" In theory, this sounds Very simple and straightforward, but is such a system practical? Unfortunately, it's not that simple, but by the end of the article, you'll know how to make money in Forex trading.
The problem of such a simple trading system
A common myth in Forex trading is that you need a high winning rate in order to earn a long-term forex trading income. Forex robot marketers are very good at exploiting the illusion of a high-winning system, often promoting 90% or even 95% of the winning rate in advertising materials. The truth is, in the long run, you don't need a high winning rate to make money in Forex trading. In fact, the winning rate of a more profitable foreign exchange trading system is often only 40-60%.
Another feature of profitable foreign exchange trading systems is that they tend to outweigh losses. This is how they compensate for the lower percentage of winning. There is really no point in exchange for small profits because you need as much profit as possible to pay for the inevitable losses. If you limit your daily profit to 10 points, you will lose 50 points or even 100 points of loss day sooner or later, and you will eliminate weeks of profit.
How to really make money in foreign exchange
Obviously, there is no such thing as a forex robot without loss, so forget about 100% victory and 10 points every day. That is the formula for trading failures and disappointments. If your trading performance is poor and you lack a reliable, profitable Forex trading system to earn you a steady flow of Forex trading, then the best way is to use the experience of others in the market. This means identifying profitable systems through research and due diligence. It takes time to find one, but it is worth it.
The key to making money in foreign exchange trading is to have a reliable, profitable foreign exchange trading system and use reliable money management strategies to create lasting foreign exchange trading income. So don't waste time pursuing impossible high percentage wins or small profit margins, because your time is best spent trading with a proven profit system.