Table Of Contents
“The trick” is very simple: you’ll make less money if your commercial operation is short-termed. What is the reason? Try to analyze any investment you’ve ever made and recognize if you ever have been able to crank all cases in the same day. And if you're so lucky, how many times have you successfully repeated it? None, for sure. The rule is that the profit’s growth takes time. This is the main global Forex trading trick.
Failed traders try to trade in a very short intervals, that automatically limits their profit potential. Such Forex traders keep the scenario of unlimited losses. That’s the reason, why so many Forex traders have achieved such poor results in the short trading. They have locked themselves in no-win situation. The following error is often disseminated by sellers of Forex trading systems. They assure that you can make the mountains of money by catching market highs and lows throughout the day. This opinion is supported by the following argument: Forex day trading with never leaving open positions at night limits your risks, because you do not depend on news. This is totally wrong for two reasons:
The stop-loss point is the only way for Forex brokers to control their risk in this business. Of course, the next morning gap may jump over the point. Using the stop-loss points, you can minimize your losses, although this is a rare case.
The position of these points determines the maximum amount of money you may lose. It doesn’t matter when or how you open the currency position, your stop point limits your risk. The risk of buying at the point of absolute maximum of the new market or at the point of its absolute minimum remains the same. Refusing setting positions overnight, you limit the time for your investment to grow.
The second and the main reason: when you stop your global Forex trading at the end of the day or in some artificial time, 5 or 10-minute chart, you drastically limit the potential of profit. Just learn one simple Forex option: try to keep your winning positions, and usually the longer you hold, the more potential profit you may get. When the farmers sow the field, they do not dig the plants out every few minutes -they allow them to germinate and to grow up. We the Forex traders should learn a lot of this natural process.