Is Forex Just Guessing or Based on luck? Bad Truth Expands 2023
Is Forex just Guessing or based on luck? Let’s find out about this topic today. 95%+ small retail traders getting lose in Forex trading. When several accounts are lost, they think that forex trading is a gamble. Or that this is something based solely on luck or that this is something based on guessing.
But the bad truth is that foreign currency exchange is a real business. It’s not a quick-rich program. Anyone can make money with forex trading. But no one can win every trade here. That is why we called Management the key to success.
Let’s know how to trade currencies profitably. Every time we advise our clients, do not to risk their all account balance in a single trade. There are many Forex trading facts here those beginners do avoid learning.
This article is not for corporate merchants, big brokers, or big banks. We are writing this article only for small retailers who keep getting losing money on forex trading.
Related: Find Best Forex Broker According To Trading Style
Let’s dive deep into the forex sea. As we mentioned earlier Forex trading is a Real Business. When doing business, we have to accept small losses. Also, we should recover our losses in the next trade. This is why a good strategy needs to trade foreign currency exchange.
Why do Losers think “Is Forex Just Guessing”
As we mentioned in our previous posts, Forex trading is a game of big players. All we can do here is follow them and make money by trading accordingly. We can’t ever know their every secret properly.
The main thing you need to know is “What is a forex and how does it work“? Then you must make a good trading strategy if you really need to get a profit from trading.
We hope you have read many articles related to Forex Trading or watched many videos to learn about Forex trading before losing your first Forex trading account. Many traders think that forex trading is a gamble. Because even after losing several accounts, they are unaware of the mistake they made.
What is Forex Trading, and How does it work?
Try this way. Just think you are a retail seller. And you sell fruits in your store. Also, you do not have a refrigerator to keep your fruits in for a long time in fresh quality. You have to get fruits for the best price and sell those with profit.
We are pretty sure you think from many sides in this case. The badest thing is You do not think much before getting a currency to sell later on. After winning a few trades, they think they are doing their job in the right way. But after losing some trades, they think that foreign currency exchange trading is just based on guessing or luck.
Is forex based on Luck? What is forex Based on
Forex trading is just based on Big players’ minds. We cannot predict any movement. We just can react according to swings.
How to Make a Strategy to avoid losing money.
We know what you think now. Your next question is how to create a trading strategy. We have already written an article on that topic. We will clarify it a little bit here.
Try to have a strong trading strategy, including a good management plan. You must include all these checklists. It does not matter if you are a Scalper, Day trader, Swing trader, or position trader. Techniques can be different, but the concept is the same for everyone. Here are the common things which every trader must do before entering a trade.
- Pick a currency pair.
- Fundamental Analysis
- Sentiment Analysis
- Technical Analysis
- Risk reward
- Lot size calculation
- Money management.
After picking your favorite currency pair you must analyze the fundamentals. By analyzing the fundamentals, you can easily identify whether big players will go for their next move, or not.
The next step is Trader sentiment analysis. You can easily identify which player moves the last swing. If non-commercial traders are with you, then you can go in that swing with them. You must avoid commercial traders.
You can learn more about this topic on our sentiment analysis pst.
From the technical analysis, you can confirm the tendencies of the big players and choose the best price to buy money. You can then set the best reward for our risk money.
Related: Technical Analysis Techniques
Stop loss is another important factor. We think you saw some trades going in your direction after hitting your stop losses. We had mentioned three major places to set the stop loss. and filtered the best place on there.
Read our Stop loss avoiding strategy post to know the best way to place the stop loss.
After correcting the stop loss, your next step is to calculate the size for that trade. You can use a god lot size calculator to do that.
You can not be a good trader if you are trying to catch a swing from the beginning. You have to wait for the best time to enter a trade.
If you can follow these techniques step by step in the right way, then you can beat the market player easily.
Related: What is Real Trend and How to use it
Conclusion for “Is forex Just Guessing?“
If still, you think it Is Forex Just Guessing, gambling, or anything else against the real business, it is your mistake. There is not any guessing, gambling, or luck in forex trading. All are based on the following methods of the big players. All in part of the management.