Yes, but when we think about is forex trading profitable. forex trading is extremely hard and not profitable for many. More than 90% of the trades lose money. This is why this market remains the most difficult forex trading for beginners.

Forex trading is extremely difficult because 90% of the people will lose money in the Forex market and the rest of the 10% will make money. Factors that depend on you: Your risk management is good, and your emotional decision-making ability is good, it depends on your strategy. To increase your forex trading profit per day you should have to focus on that 90% don’t focus on. Many people search is forex trading gambling and the answer is no.

What is forex trading?

Forex trading is about buying and selling different global currencies. Every trade aims to make a profit in different price fluctuations. The Forex market is open 5 days a week from Monday to Friday, during which traders can trade Forex trading.

It is the largest financial market in the world whose daily volume crosses USD 6 trillion. Which makes it the largest and most liquid market.

Uncontrollable Events That Affecting Your Profitability:-

Market Volatility

The higher the volatility, the higher the price moment, and high volatility means that the market price movements are very fast due to which your risk amount also increases and you can also have significant losses.

 

Blackman events

Blackman events are quite rare and at the same time, they are also predictable. If we talk about its examples, such as a terrorist attack a financial crisis, or a pandemic, it impacts the financial market due to which the financial market An extremely volatile situation is created.

Natural Disasters

Any natural disaster can impact the Forex market such as an earthquake, a flood, or something that disrupts the economy and activity.

Market Sentiment

One unpredictable thing is the market sentiment which is driven by a lot of factors such as investor confidence. risk appetite and market positioning can influence currency prices.

Many other things can impact the Forex market, such as the arrival of some geopolitical event and its change, and all these remain unpredictable.

Which is the most profitable form of forex trading?

We found the answer to this question after checking millions of results.

Here’s the research that we found.

Swing trading is one of the most profitable forms of forex trading. Now as far as we are concerned, day traders and swing traders.

Swing traders make more money than day traders. Because they ride on the trend.

While the day trader takes trade every day.

On the other hand, the swing trader takes fewer trades, due to which his Stop losses are also hit less. And his money goes less in commission. And thanks to that, his time is also less and his mental health is also better as compared to a day trader.

Why 90% of the people will lose money?

Let us now talk about why 90% of people lose their money in the Forex market. If we talk about this reason, Is forex trading profitable? then many come out

Let’s Dig Deeper: –

Social Media Influence

What we should find out is why so many people are losing their money in Forex trading. So, the main reason comes out to be the influence of social media. You see, in social media trading, life is so different from reality.

The talk about Forex trading on social media is only about money, about 100%-win strategies, and about selling courses.

Those selling courses on social media often claim that their courses are 100% profits, 90% profits, if you do this then you will become profitable and after being influenced by them, many people come into the market, in the hope of making money, but they end up losing money.

Earning Some Money

When people are new to the market, they start getting some profit because of this beginner’s luck, due to which they are not able to control their emotions. By not paying attention to their risk and unexplored thoughts, they focus only on their money gains because of this after some time when beginner’s luck is over, they start losing money again.

After some time when they lose money, they quit. Due to this, they also come in the category of 90% of people. And this process keeps repeating.

Changing their strategy

Remember, there are thousands of the strategy outside there, every strategy has its win ratio as per its strength and its weakness.

Every strategy has its advantages and disadvantages.

If I talk about the example,

So that strategy is of moving average. Many of the top traders also use it. This strategy has its advantages and disadvantages.

The advantage is that this strategy works better in their trending markets.

The disadvantage is that when the market is sideways then these strategies do not work so much.

So, some other strategies are used for trade.

Rely on indicator

The biggest mistake that beginners make in the Forex market is that they focus too much on indicators. Now if we talk about indicators, there are a lot of indicators. And each indicator has its own approach.

But this is not the problem, the problem comes when a beginner relies too much on the indicator. A beginner, by looking at the indicators, identifies a lot of signals available in the market. That is why he probably thinks of using more indicators. So, remember the primary indicator is only price action.

Choosing Wrong Mentor

There are a lot of mentors here who provide knowledge of the financial market. But, there are only a few mentors who teach you how to be profitable.

After doing research, my team has put forward some points that will help you to know whether someone who is a guru or legend of the financial market is profitable or not.

Let’s see.

• Checked out their communities
• He doesn’t need to show their profit to get views
• Checked out their review or comments on the official pages and best reviewer
• His primary focus is to improve psychology

What you should focus on to become a profitable trader trading?

To answer is forex trading profitable? One cannot focus on just one thing. Because a profitable trader is a thing in itself. One who is 100% in everything. Like his discipline, his strategies, and his decision-making ability. Emotions. Everything needs to be perfect.

If we talk about his strategy and whether Is forex trading profitable?

there is not just one strategy that is used extensively in every market. A profitable trader knows which strategy will be successful in which market condition.

Let’s Dig Deeper: –

Believe on yourself

Whatever you see on social media or whatever influencers say, you should not blindly trust them but first, trust your setup and yourself.

Most of the beginning traders invest in the market after watching the news. They consider it as sentiment. But do you know how much of the news is there and only a few of them work?

So, to avoid this, focus completely on your setup and your strategy. If you want, you can also use fundamentals. Because it is fundamentals that drive the price of the Forex market.

Choose the right community

For a better training decision, you need a community that will share its experiences with you and also share its analysis.

A big advantage of the community is that you don’t have to go to every pair to do the analysis. Rather, they share their expertise with you, so by understanding them, you can also go and do your research on it.

Manage your risk

The primary focus of profitable trading is risk management. Because risk protects your capital and helps in growing the capital.

What you need to focus on in risk management

• What will be your risk appetite?

Like, what amount of risk are you capable of taking as per your financial situation? This creates a primary situation in risk management.

• What will be your position sizing?

Position size is the total number of units and lots to trade. And position size varies. What is your account size? How much risk do you want to take? Or to put it simply, the distance it creates, your stop loss level?

Choose the Right Mentor

If you search the media, there are many financial expert men out there. But there are only a few people among them, who are profitable and will also teach you.

But the drawback that comes out is that these days there are a lot of people on social media.

Due to the presence of more financial experts, it has become difficult to trust everyone. So, choosing the right mentor is also a compulsory one.

Because without a mentor, you will have no one to tell your emotions. which will show you the results. So mentoring is mandatory.

DID I MISS ANYTHING?

I’d like to hear from you:

Are you a beginner in forex trading?

From your experience what do you think why people lose money?

Do Comment, I’d love to know.

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