Yes it's possible, you will never lose money again. No, that doesn't mean that you give up trading. No, it's not some super computer system. In fact, it has nothing to do with spreads, or magical trades that only the super insiders know. The fact of the matter is that the difference between rich traders and poor traders is that one loses made, and one doesn't lose money.
Take Forex, there was a study done that examined 43 Million trades. Let that number sink in for a moment. 43 Million trades, from brokerage accounts, trading forex. Now, something like 97% of Forex traders lose money in the market. Why is that? Is it because Forex is rigged, or because it's difficult, or it moves erratically. Actually it has nothing to do with that. In fact, the statistics showed that people would often chose the right direction 50 to 60% of the time. So by and large, across the large bed of currency, people chose the correct direction more times than not. And yet the majority still lose.
This is the secret to trading. Don't lose money. But, in the world of trading, not losing money needs to be very different than what we think about. As a newbie, we've all been looking for that system, that system that would let us avoid loss, avoid rejection, avoid a feeling anything negative emotion, anything that questions our intelligence. In truth, successful traders are simply people who don't lose a single dollar more on a trade than they have to.
You're going to lose money, it takes time to see if your prediction of the market direction was correct. But, do you have a system that cuts those losses when you're wrong, that saves you money. Cause, the truth of the matter is that successful traders never lose more than they have to.
Take Forex, there was a study done that examined 43 Million trades. Let that number sink in for a moment. 43 Million trades, from brokerage accounts, trading forex. Now, something like 97% of Forex traders lose money in the market. Why is that? Is it because Forex is rigged, or because it's difficult, or it moves erratically. Actually it has nothing to do with that. In fact, the statistics showed that people would often chose the right direction 50 to 60% of the time. So by and large, across the large bed of currency, people chose the correct direction more times than not. And yet the majority still lose.
This is the secret to trading. Don't lose money. But, in the world of trading, not losing money needs to be very different than what we think about. As a newbie, we've all been looking for that system, that system that would let us avoid loss, avoid rejection, avoid a feeling anything negative emotion, anything that questions our intelligence. In truth, successful traders are simply people who don't lose a single dollar more on a trade than they have to.
You're going to lose money, it takes time to see if your prediction of the market direction was correct. But, do you have a system that cuts those losses when you're wrong, that saves you money. Cause, the truth of the matter is that successful traders never lose more than they have to.
