Not Every Trade Makes Money

CashBackForex

Active Trader
Apr 19, 2012
50
0
27
Cork, Ireland
www.cashbackforex.com
How true it is, not every trade does make money. Traders, after analysis of various inputs, reach a conclusion, and enter the trade. The analysis can include a myriad of inputs. Initially, most traders tend to rely on technical analysis, probably because it is easier to get a rudimentary grasp on the markets behavior. Since price action, as portrayed in a charts, is the summation of many different inputs, this is a logical starting point.

Sometimes we look at a chart, and envision a formation, and conclude the price will go to a certain objective. Accordingly, a position is taken, and the result is profitable; this leads to confidence and interpretation of other formations. And, yes, we all know how this ends. Making money on our first few trades can be costly. We think we are a trading natural and then losses occur in both our money and our confidence. It is time to go back to the analysis room.

Then it gets confusing. There are so many inputs from so many different sources. Markets can be driven by fundamental economic events, news releases, various central bank policies, and most of all fear and greed.

That's why resources like EarnForex.com and ForexRazor.com are so important (and free): there's a world of a difference between gambling and risk-managing your 'wager'. If you are going to survive as a trader you must learn, as they say in the song "when to hold them and when to fold them." Further, you must examine what caused you to initiate the trade and then learn from your losing trades.
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
4
49
Technical analysis is perfect for long term and short term positions and on fundamentals, you need the experience to read the fundamental cues correctly..
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
It is not possible to get every trade right and I think it makes no sense to even attempt that. Traders need to learn how to accept losses and know what they want as far as profits are concerned as well.