Why do some people make money on Forex while others lose?
Hundreds of thousands of people are currently engaged in stock trading, and thanks to the internet, the number of people wanting to become traders has increased hundreds of times.
However, not everyone succeeds; most newcomers lose their money, and only a few continue trading.
As has been mentioned many times, official statistics are discouraging, reporting that between 5 and 15 percent of investors are successful.
My personal observations place this figure even lower, at no more than 3%—meaning that only three out of 100 newcomers trade profitably.
Why do some succeed in becoming traders and earning a stable income, while others leave the market disillusioned and broke?
So how do you start making consistent money on Forex?
Realistically assess your prospects – inflated expectations are what push everyone to act rashly and make foolish decisions.
Try to accept that you'll earn no more than 5% per month at first, and even less from a single trade.
Limit your losses – lose no more than 1% per trade, and trading will take off right away. However, don't use 1:500 leverage and close a trade as soon as your losses exceed 1%. This approach won't work.
Try to adjust your trade size so that the percentage of losses is slightly greater than the correction size on your time frame or corresponds to a certain level.
This rule will allow you to start working instead of wasting your deposits .
Find your Holy Grail – that is, the signal you will rely on when opening a trade.
For example, open a position only after a sharp price drop or surge, counting on an inevitable counter-trend correction.
You must find your signal, study all the specifics of the situation you will be working in, and perfect your system.
There is nothing complicated in stock trading if you follow a specific system, so don't try to reinvent the wheel. Most professional traders use the same strategies , and most beginners lose their deposits due to high leverage.
