So you've had dealing with confusing trading indicators and trying to make sense of the different news releases and what they all mean. All of a sudden, you're hit with a brainwave: "If I just take 10 pips out of the market every day. Keep up a 100% win rate, then making money in Forex will be easy!". It all sounds very simple and straightforward in theory. Is such a system actually viable? Unfortunately, it's not that simple. By the end of this article, you'll know how to really make money in Forex.
The Problem With Such A Simple Trading System
It's a common myth in Forex that you need a high winning percentage to make a winning Forex trading income. Forex robot marketers are very good at playing on the fantasy of a high winning percentage system. Often advertize 90% or even 95% win rates in their advertising material. The truth is, you don't need to have a high win rate to make money in Forex in the long run. In fact, the more profitable Forex trading systems tend to have a win rate of just 40-60%.
Another characteristic of profitable Forex trading systems is that they tend to have much bigger wins than losses. That's how they make up for a lower winning percentage. There's really no sense in trading for small profits, because you need as much profit as possible to pay for the inevitable losses you'll encounter. If you limit your profits to 10 pips a day, sooner or later you'll encounter a 50 pip or even 100 pip losing…