So you've tackled it with confusing trading indices and trying to understand the different news bulletins and what they all mean. Suddenly, you hit with a brainwave: "If I get just 10 pips from the market each day, and keep a 100% 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 know 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 results in a lower victory rate. There is really no point in trading for small profits because you need as much profits as possible to pay for the inevitable losses you will encounter. If you limit your winnings 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 erase weeks of winnings 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 formula for failure and frustration in your transactions. If you are not good at 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 take advantage of 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 chasing incredibly high win rates or low pip profits, because your time is much better spent in trading with a proven, profitable system.