Forex : The mystery of losing money with a good strategy

This industry is a mystery because people find they are losing money after using the right strategy. There is no strategy that can give you profit continuously because of the changing trends. What is good for today may turn out old for tomorrow.

This article will try to give you an explanation of why you can lose money even with a good strategy. Do not increase your hope after reading that you should try harder to increase the profit. The nature of this industry is always changing and it is hard to make consistent money. If you compare with the professionals, they have years of trading experience and they have become wise in Forex.

This article will tell you why a good strategy fails to give profit to the traders. It is not the fault of your plan or you have not worked hard, it is because the industry just not reward one trader always.

The volatility of the Forex market

New traders don’t really understand the complex nature of this volatile market. People often think trading is all about luck. But in reality, luck has nothing to do with your profit. Your skills will determine how much money you will make from this market. Changing your life doesn’t require an extreme level of hard work. You need to work smart to ensure your financial stability.

Understanding the market volatility is really hard for the novice traders. Instead of trading the synthetic pairs, you need to focus on the most traded currency pairs. This will help you to find a decent correlation between your technical and fundamental analysis. You might have a very good trading strategy but this doesn’t mean you will be winning trades all the time. Learn to deal with the losing trades in an efficient way. Stop thinking about getting rich by trading the Forex market. First of all,  focus on your personal development. Try to understand the complex mechanism of this trading business. Once you get a clear idea, craft your own strategy and trade with proper money management.

The winning traders are not fixed

This is one of the explanations that can help you to understand the mystery of the changing trends. If you look at the professional traders, you will see that they are making consistent money but they also have losses. In their 10 trades, they lose 4 trades but still, they make profit evacuee of their risks to reward ratio. The profit is larger than the losses and this is how they can make money.

The winners of this industry are never fixed, it changes from time to time depending on your technique and how you have planned your strategy. If you are lucky, you can make money or you have to wait for the next trades. Do not lose hope and learn from the professionals that winners also need to wait.

A good strategy gets outdated with time if it is not updated

This is another truth in Forex. You may have worked for many months to develop your plan but if you do not update it every month, you will lose your money. Most people only develop a plan but they do not update with news and information.

New trends are coming, new information is released and it all needs to be incorporated into your strategy. This is  live trading, where every moment is important and the future trend comes from your past movement. Always update the strategy and you will get profit.

The luck may not be always in favour

Even in the world of online trading, you will still need the luck to make you successful. Try to develop wisdom and you will find some losses are meant for your good. Learn your mistakes and avoid big mistakes from these faults. Take some breaks if you are losing consistently.

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from TheMarketingblog http://www.themarketingblog.co.uk/2018/10/forex-the-mystery-of-losing-money-with-a-good-strategy/