If your average target profit is 1. Over your trading career the most important long-term process you will go through is finding your trading style. We all assess risk differently, prefer different risk levels, prefer certain time frames and styles of trading like day-trading, scalping, or longer-term approaches. The great thing about the strategy of Forex4noobs is that it provides you with the foundations of a strategy that you can then build upon.

Flexibility and adaptability is really important with strategies, in my experience. I have seen hundreds of variations on my strategy now that Forex4noobs students have cultivated it over time. As they have understood themselves more as traders, the strategy adapts and grows with them.

Tweaking a strategy is a more advanced aspect of trading because it needs to be balanced with a consistent approach. However, when done right, it is extremely profitable, both metaphorically and literally. I go over how to experiment with your strategy if you want to read more about this area of trading. Unfortunately, there are a lot of influential people that feed people these misconceptions in order to push a signal service or a product.

The fact of the matter is that you have to dedicate time and effort into forex trading if you want to have any hope of finding financial freedom. The majority of trading accounts in the UK lose money. That is a reality. Do you want to be part of that pile?

Probably not. This is where failing to prepare is preparing to fail. Yes, that comes with responsibility and accountability. Yes, you need to become reliant on yourself and dedicate time and effort in order to find success. You are also your own boss. While technically true, there is a lot more behind it than simply that. There are thousands of different things that can influence the markets.

News events, natural disasters, Donald Trump tweeting something, or just other traders thinking the markets will move a certain way. Some people do of course come into it and gamble, but they very quickly learn that you cannot be successful by trading that way.

If you have your expectations in the right place then you will be in a much better place to achieve your overall goals. Managing your expectations is vital for a successful trading career. Those are some of the differences in the expectations that people have compared to the realities of trading. From the outside forex looks like a very different beast than it is from the inside. Save my name, email, and website in this browser for the next time I comment.

About Us Advertise With Us Contact Us. Forex Academy. Home Forex Education Beginners Forex Education Forex Trading: Expectations vs. Reality — Part One. RELATED ARTICLES MORE FROM AUTHOR. Why Forex Traders Must Value Their Time. Determining the Strength of the Market by Analyzing the VSA.

LEAVE A REPLY Cancel reply. Please enter your comment! For some, it may be three months, while for others, it may be a year or two. However, even after a year of trading, another set of traders has still been trying to become profitable traders.

This is why it is critical to establish a solid foundation of knowledge. This is a simple step. To learn the fundamentals of trading, visit Babypips. com or our trading blog. This basic knowledge is readily obtained by reading a few articles or viewing a few YouTube videos. Or, to put it another way, the only way to learn about trading is to participate in the market.

Participate in the market create engagement, these engagements not only make you a more seasoned trader, but they also give you the confidence to remain cool under volatile market situations.

The idea here is that in order to be a consistent and profitable trader, you must apply what you have learned to real-world market situations. The demo trading account is quite useful in this situation.

Let the market be your trading mentor, and keep in mind that in order to acquire skills as a trader, you must maintain constant interaction with the market, which will ultimately build the skill set you require, which takes time. This is what a lot of new traders believe.

This is, once again, absolutely incorrect. These traders have a distinct mindset that allows them to view the market from a different angle than novice traders. They think like risk managers and always trade according to a set of rules. In trading, emotions are constantly there. It is not about developing better plans or conducting more comprehensive analyses, but about cultivating a winning attitude. Mark Douglas clearly states in his book Trading in the Zone that the attitude of traders separates successful traders from losers.

Successful traders see the market differently than others, they understand that trading is a probability game or a number game, and they always accept and move on from random results of their trades.

One area that successful traders excel at that inexperienced traders sometimes overlook is trading psychology. Consistent traders understand how to control their emotional ups and downs, and you should do the same if you want to be a successful trader.

Related: How to Control Emotions Ups and Down When Trading Forex — Trading Psychology. As previously stated, the market always presents random distributions of winners and losers. We never know how a single trade will turn out until it is completed. We have no influence over the market, therefore all we can do is execute trades in accordance with our trading strategy while prioritizing risk management. We have no influence over the result of trades as well.

We must accept the outcome of our trades without hesitation, whether it is a winner or a loss. We should detach ourselves from the trades since we have no influence over a single outcome. Having an attachment to something over which we have no control is a sure way to bring a lot of emotional pain. Therefore, whenever you execute a trade, separate yourself from it and concentrate on what you can manage. There you have it: 11 truth about forex trading nobody willing to tell you.

Yeah, I know some of these things are bitter, But this is the reality. At some point in our trading, we have to face these truths and it is better to know about these things in advance, right? Now keep in mind that, the faster you accept the truth, the quicker you can become a profitable trader. With that, I hope you learned something valuable from this post. If so, give us small support by sharing this with your friends.

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In essence, these traders are entrapped. This is not intended to discourage beginner traders, but rather to educate them on the realities of the market. Once you understand these concepts, you will have a better understanding of how Forex trading works. This is the only truth you need to get yourself out of that big wall maze. Read through two bold passages below.

This is how we were trained to think. But when to comes to trading where every possible outcome is totally random this become the opposite as we used to think. As an example think about a casino. They make money consistently even the gambling produce random outcome every day, right? The same applies to trading as well. Trading also produces random outcomes for each trades. As traders, all we do is execute our trading plan. Basically, what I need you to grasp is that: even those that have probable outcomes can produce consistent results if you can get the odds in your favour and there is a large enough sample size.

At a glance, you can see that there are lots of losing trades and few winning trades according to the above trade data. Or in another word, we can say that these results are totally randomized. But do you believe me if I tell you that these random outcomes culminate in consistent results?

Well, have a look at the equity chart for the above trades. The above chart perfectly describes what it means by the Random Outcome but Consistent Result. As we already talked about, in trading there is a random distribution of winners and losses for any given period. Or, to put it another way, based on the previous success of your trading edge, you may know that 60 of the next trades will be winners and 40 will be losses.

This truth makes trading a probability or number game. Instead of having unrealistic expectations, as a trader, do your research by backtesting your trading strategy, defining the market condition you should be in, and, most importantly, understand the statistics behind your trading edge.

These will help you trust your trading process. A Trading EDGE is Nothing More Than an Indication of a Higher Probability of One Thing Happening Over Another. To develop a consistent mentality in trading, you must first accept that trading is not about hoping, wondering, or accumulating evidence one way or the other to decide if the next trade will succeed.

The only confluence you need to gather is whether the technical tools you use to define an edge are present at any given moment. If your trading edge has a positive expectancy, this is all you need. While I completely agree with this, I also believe that the market uniquely repeats itself each time.

For example, let take a support level. We have seen the price action bounce from support level from time to time. Basically, this is a repetitive event. Sometimes the price will reach the support level and shoot like a rocket, and other times the price may hold the support level for a while before shooting off.

In trading, if we want to take the advantage of repetitive moments, we must truly understand how uniqueness work in trading and how to adapt ourselves for that. So the question is, how to do that?

To be honest, you cannot do anything here. All you can do is execute your trade plan and let your edge play out. If the trade move in your favour, give it some time to play out. If it is not moving in your favour, just cut the losses. Keep in mind that, the stronger you believe in the uniqueness of each price movement, the lower your potential for each trading outcome.

The lower your potential for each trading outcome, the more open your mind will be to perceive what the market is offering you from its perspective. Because there are always unknown participants working in every market at all times, it only takes one large institution or bank in the globe to negate the positive outcome of your trade.

Regardless of how much time, effort, or money you have put into your analysis, the market has no expectations for this reality. Any expectations you have will be a source of tension and may drive you to view market information as dangerous.

Opening a trading account and getting started in forex is simple since access is quick and convenient. Therefore you should work on your trading capital first before thinking about the money you will make from the trading. Once again this boils down to the account size you have. The currency market is available 24 hours a day, five days a week. This provides greater flexibility for traders, as they can trade at any time and from any location. However, there are times in the market when volatility is relatively low, like the Asian session.

However, volatility is significantly higher in the New York and London sessions, which provides us with numerous new trading opportunities. The fact is that becoming a forex trader takes time. For some, it may be three months, while for others, it may be a year or two. However, even after a year of trading, another set of traders has still been trying to become profitable traders.

This is why it is critical to establish a solid foundation of knowledge. This is a simple step. To learn the fundamentals of trading, visit Babypips. com or our trading blog. This basic knowledge is readily obtained by reading a few articles or viewing a few YouTube videos. Or, to put it another way, the only way to learn about trading is to participate in the market.

Participate in the market create engagement, these engagements not only make you a more seasoned trader, but they also give you the confidence to remain cool under volatile market situations. The idea here is that in order to be a consistent and profitable trader, you must apply what you have learned to real-world market situations. The demo trading account is quite useful in this situation.

Let the market be your trading mentor, and keep in mind that in order to acquire skills as a trader, you must maintain constant interaction with the market, which will ultimately build the skill set you require, which takes time.

This is what a lot of new traders believe. This is, once again, absolutely incorrect. These traders have a distinct mindset that allows them to view the market from a different angle than novice traders.

They think like risk managers and always trade according to a set of rules. In trading, emotions are constantly there. It is not about developing better plans or conducting more comprehensive analyses, but about cultivating a winning attitude. Mark Douglas clearly states in his book Trading in the Zone that the attitude of traders separates successful traders from losers.

Successful traders see the market differently than others, they understand that trading is a probability game or a number game, and they always accept and move on from random results of their trades. One area that successful traders excel at that inexperienced traders sometimes overlook is trading psychology.

Consistent traders understand how to control their emotional ups and downs, and you should do the same if you want to be a successful trader. Related: How to Control Emotions Ups and Down When Trading Forex — Trading Psychology. As previously stated, the market always presents random distributions of winners and losers.

We never know how a single trade will turn out until it is completed. We have no influence over the market, therefore all we can do is execute trades in accordance with our trading strategy while prioritizing risk management. We have no influence over the result of trades as well. We must accept the outcome of our trades without hesitation, whether it is a winner or a loss.

We should detach ourselves from the trades since we have no influence over a single outcome. Having an attachment to something over which we have no control is a sure way to bring a lot of emotional pain.

Therefore, whenever you execute a trade, separate yourself from it and concentrate on what you can manage. There you have it: 11 truth about forex trading nobody willing to tell you. Yeah, I know some of these things are bitter, But this is the reality.

At some point in our trading, we have to face these truths and it is better to know about these things in advance, right? Now keep in mind that, the faster you accept the truth, the quicker you can become a profitable trader.

With that, I hope you learned something valuable from this post. If so, give us small support by sharing this with your friends. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. We Are… Trade Revenue Pro. We specialize in reverse trading. More Over Our Trading Technique Enable Everyone, Even Novice Forex Traders to Recognize and Ride the Trend Reversals with Higher Risk to Reward Ratio.

Trade Article. Random Outcome, Consistent Result This is the only truth you need to get yourself out of that big wall maze. A consistent, non-random outcome produce consistent results. And… A random outcome produces random, inconsistent results.

In trading, it is all about Random Outcome But Consistent Results. Leave a Reply Cancel reply Your email address will not be published.

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