So you've had it dealing with confusing trading indicators and trying to make sense of the different news releases and what they all mean. All of a sudden, you're hit with a brainwave: "If I just take 10 pips out of the market every day, and keep up a 100% win rate, then making money in Forex will be easy!" It all sounds very simple and straightforward in theory, but is such a system actually viable? Unfortunately, it's not that simple, but by the end of this article, you'll know how to really make money in Forex.
The Problem With Such A Simple Trading System
It's a common myth in Forex that you need a high winning percentage to make a lasting Forex trading income. Forex robot marketers are very good at playing on the fantasy of a high winning percentage system, and often advertise 90% or even 95% win rates in their advertising material. The truth is, you don't need to have a high win rate to make money in Forex in the long run. In fact, the more profitable Forex trading systems tend to have a win rate of just 40-60%.
Another characteristic of profitable Forex trading systems is that they tend to have much bigger wins than losses. That's how they make up for a lower winning percentage. There's really no sense in trading for small profits, because you need as much profit as possible to pay for the inevitable losses you'll encounter. If you limit your profits to 10 pips a day, sooner or later you'll encounter a 50 pip or even 100 pip losing day, and you'll wipe out weeks of profits just like that.
How To Really Make Money In Forex
Obviously there's no such thing as a no loss Forex robot, so forget about 100% wins and 10 pips a day. That's a formula for failure and disappointment in your trading. If you're 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 thing to do is to leverage on someone else's experience in the markets. That means identifying a profitable system through research and due diligence. It takes time to find one, but it's well worth it.
The key to making money in Forex is to have a proven, profitable Forex trading system, and applying a solid money management strategy to create a lasting Forex trading income. So don't waste your time chasing impossibly high winning percentages, or small pip profits, because your time is much better spent trading with a proven, profitable system.