The chances of success in the forex market
Novice traders, and just random people who wandered the site of a broker or dealing center, often ask themselves:
- Is it possible to consistently make money in stocks or currencies without having enough experience?
- And how successful traders make?
- And a chance to make the first deal and not lose the entire deposit?
Let's try in this article highlight some common questions and dispel common misconceptions beginners. For greater clarity and illustrative article is based on concrete numbers and explain everything in terms of examples of transactions.
Suppose you are a man, far from currency speculation, listening to the exchange rates, we decided to try their hand at trading on the foreign exchange market (forex). With a little force on the Internet you can find a lot of different information on the subject. Find how you can obschepoznovatelnye texts, as well as specific recommendations for behavior in the market, which includes advice on when and which currency to buy / sell.
Not having any knowledge, is your chance to capitalize on this market is estimated 50/50. And it is significantly higher than in any lottery or sweepstakes! To explain this very simply: the currency can only increase in price or cheaper or. That is, when making any transaction without any analysis and experience you 50% chance to make a profitable trade. In other words we can say that every other transaction should be profitable.
Now imagine that your existing basic knowledge and skills enable you to make profitable trades than 5 out of 10 (you do not need any knowledge), and six out of ten.
You decide to invest in the work of the foreign exchange market 5000 USD. But to invest in real trading you are ready to only 1,000 USD, while the remainder will serve as an additional insured under warranty. Thus, you set for ourselves the highest possible loss in a month. Now it is necessary to determine the goals of work.
Successful in the foreign exchange market (forex) is the one trader who consistently earns foreign currency transactions of 10-15% every month. We pose for a goal to earn no less. Translate our interest in virtual dollars, and we aim: 5000 * 0.10 = $ 500 per month.
Since an average of 1 point equals $ 10, then a month to earn 50 points. Much or too little? On average, the currency pair during the day oscillates at a rate of 100 points, respectively for the month and 100 * 20 (days) = 2000 points, of which we have only 50.
At one point, all contractual formalities are completed, choose a broker and you are just getting started real work. For convenience, we take that occurs in 10 transactions per month, of which, thanks to some knowledge and information available to you six winners and four loss-making (your knowledge and ability to provide you good luck in 50% of 10% of cases).
Since the beginning we have set ourselves the maximum possible loss per month in 1000 USD, the average loss for each transaction (if you follow our rules) can not exceed 250 USD or 25 points. For more believable take value equal to the average gain is also $ 250 or 25 points.
In the embodiment under consideration for the month you will earn exactly 500 USD. (4 * deal - 250 USD + 6 deals $ 250 USD). That is absolutely real, with an account of $ 5,000 to earn $ 500 every month, while risking only $ 1,000.
By making more deals (while maintaining the conditions that 6 out of 10 trades profitable), you can earn more. With the growth of your skills as a currency trader, winning percentage will also rise, which in turn will generate additional income.
If you have many positive trade balance your transactions will gradually increase over time and you will be able to afford to work not with 1000 dollars, and with a larger sum, which should also affect the rate of growth of your capital.
Novice traders, and just random people who wandered the site of a broker or dealing center, often ask themselves:
- Is it possible to consistently make money in stocks or currencies without having enough experience?
- And how successful traders make?
- And a chance to make the first deal and not lose the entire deposit?
Let's try in this article highlight some common questions and dispel common misconceptions beginners. For greater clarity and illustrative article is based on concrete numbers and explain everything in terms of examples of transactions.
Suppose you are a man, far from currency speculation, listening to the exchange rates, we decided to try their hand at trading on the foreign exchange market (forex). With a little force on the Internet you can find a lot of different information on the subject. Find how you can obschepoznovatelnye texts, as well as specific recommendations for behavior in the market, which includes advice on when and which currency to buy / sell.
Not having any knowledge, is your chance to capitalize on this market is estimated 50/50. And it is significantly higher than in any lottery or sweepstakes! To explain this very simply: the currency can only increase in price or cheaper or. That is, when making any transaction without any analysis and experience you 50% chance to make a profitable trade. In other words we can say that every other transaction should be profitable.
Now imagine that your existing basic knowledge and skills enable you to make profitable trades than 5 out of 10 (you do not need any knowledge), and six out of ten.
You decide to invest in the work of the foreign exchange market 5000 USD. But to invest in real trading you are ready to only 1,000 USD, while the remainder will serve as an additional insured under warranty. Thus, you set for ourselves the highest possible loss in a month. Now it is necessary to determine the goals of work.
Successful in the foreign exchange market (forex) is the one trader who consistently earns foreign currency transactions of 10-15% every month. We pose for a goal to earn no less. Translate our interest in virtual dollars, and we aim: 5000 * 0.10 = $ 500 per month.
Since an average of 1 point equals $ 10, then a month to earn 50 points. Much or too little? On average, the currency pair during the day oscillates at a rate of 100 points, respectively for the month and 100 * 20 (days) = 2000 points, of which we have only 50.
At one point, all contractual formalities are completed, choose a broker and you are just getting started real work. For convenience, we take that occurs in 10 transactions per month, of which, thanks to some knowledge and information available to you six winners and four loss-making (your knowledge and ability to provide you good luck in 50% of 10% of cases).
Since the beginning we have set ourselves the maximum possible loss per month in 1000 USD, the average loss for each transaction (if you follow our rules) can not exceed 250 USD or 25 points. For more believable take value equal to the average gain is also $ 250 or 25 points.
In the embodiment under consideration for the month you will earn exactly 500 USD. (4 * deal - 250 USD + 6 deals $ 250 USD). That is absolutely real, with an account of $ 5,000 to earn $ 500 every month, while risking only $ 1,000.
By making more deals (while maintaining the conditions that 6 out of 10 trades profitable), you can earn more. With the growth of your skills as a currency trader, winning percentage will also rise, which in turn will generate additional income.
If you have many positive trade balance your transactions will gradually increase over time and you will be able to afford to work not with 1000 dollars, and with a larger sum, which should also affect the rate of growth of your capital.
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