Wrong Views About Forex Trading – I have been in the trading field for a number of times that cannot be counted on the fingers and the experience I have gained while pursuing this field is very diverse and interesting. The key in pursuing trading is patience that will never be tested.
When we are patient, other people don’t, they push and force their will and when faced with defeat they express disappointment and annoyance in a variety of ways that are sometimes unorthodox.
If you have the perception that the forex market (foreign exchange) is a place to get a shortcut to get rich in a short time, you will surely reap disappointment. Many broker companies dare to guarantee that customers will be able to get large amounts of financial benefits in a short time, and they assure customers that their company has the most secure trading regulations and facilities, but why in fact why not many traders become clients of the broker?
The main purpose of trading is the same as anyone who is running a business, which is to make a profit. Valuable lessons that I learned during my plunge in this field, the most important determining factor in achieving success in the field of trading is not other people, not brokers or market conditions, but ourselves. Good way of thinking, mental readiness and stable emotions.
Many people refuse trading offers, including those who think and tell me that trading is gambling — BUY or SELL? Choose to buy or sell. But again, isn’t life itself a gamble? Life is about choices. We choose to sleep or go to work. We choose silence or work. We choose to give up or keep trying. We choose to eat fried rice or nasi padang, and so on. Each choice has its own consequences. If we sleep, are lazy and don’t want to work, of course we block our own way to get sustenance. But if we want to try and work, meet other people, continue to learn and develop networks, the people around us are the doors of sustenance.
Well, this time I will review the concept of forex trading which is our way of thinking, based on the experience and lessons I have learned from the trading environment. Above all, in addition to readiness and patience, education is also needed about an understanding of good and correct trading.
The concept that I want to share here is ‘a high percentage amount is not a determinant of trading success’. Why? Many mistaken assumptions about the percentage of profit or win rates. Beginner traders are generally quickly obsessed with the number of profit and loss frequencies. They assume, if you often get profit, it means that you will also reach your monthly or yearly profit target faster, according to their plans or projections.
In fact, this is the wrong way of thinking! Because in forex trading, there is no linear relationship between profit and time. It means, we can’t always make a profit, even though we already know that the trading methods we apply have been tested. The harsh reality is that we can earn 99% profit throughout our target time and large losses to experience a margin call in one trade.
So, we need to understand that we also have a potential loss every time. But we can keep the loss to a minimum. What we need to pay attention to and what is important is the statistical difference between the frequency of the average profit and the average loss. If the average frequency of profit is greater than loss, it can be concluded that we already have a fairly strong grip in both the way of thinking and trading methods and strategies that can be in line with the characteristics of the forex market.