They say only 10% of Forex traders make sustainable profits. The actual number may be even less. The problem for many in the Forex market is that there is simply too much competition.
Some people crash out because they are unlucky. On the other hand, greed has led many to their downfall, where they tend to ignore their trade strategies, and become reckless. At the same time, there are highly successful traders who find ways to beat the odds more often, and end up higher than 90% of the traders out there.
Set your expectations right
You might have heard about traders becoming millionaires within a few months after entering into Forex trading. Well, what you normally don’t hear is about the thousands that go bankrupt in the first month. In order to be truly successfully, you need to play the waiting game.
Here is something to do:
- Don’t leave your day job until you understand how Forex works
- Only invest your disposable income at the beginning
- Once you start turning small profits, up your investments
- Focus on making a few good trades based on solid information
Understand that your progress at the beginning will be slow. As long as you spend some time learning about trends, you are still on the right path. There will come a time when you will be able to predict Forex trends from a mile away, and reap rich rewards out of them.
Watch the 10%
In order to be a 10 percenter, you will need to know what the best binary options traders do in the first place.
- Identify the most successful Forex traders
- Analyze their moves and their pattern of decision making
- Watch how they respond to trends and adjust their trades
What you will find out about successful Forex traders is that they often go against popular advice. That is because they have look at the market differently from the other 90%. Instead of trading continuously every day, they make a few trades a week after careful deliberation. You would do well to try to understand how smart traders work for the first few months, before you invest larger amounts.
Betting against trends
It seems to be common advise that when a currency is going up, bet against that trend. This way when the currency crashes, you will end up winning. In reality, this is not a smart strategy because:
- You do not know how much longer the current currency trend is going to last
- You will be missing a lot of opportunities while waiting for the trends to change.
Betting against Forex trends makes a lot of sense, but only when you can anticipate them well in advance. For that, you will need to spend a few years in the industry. You will notice that the 10% of Forex traders who are profitable are also the ones who have stayed in the industry the longest. The more you work on your Forex knowledge and analytical skills, the better your chances of success are.