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Wednesday 9 June 2021

FOREX profit and loss percentage

 FOREX


 profit and loss percentage ..

 Forex is more complicated and risky ....

 Why do 90% of people lose money in Forex?

 Although the value of the currency will either go up or down in this regard, the average profit and loss should be 50/50 ...?

 Both are true.

 Reasons for loss ..

 The first reason is margin, commission or spread.

 Whenever a trade is made, a certain amount of loss starts at the same time even if the market stays still.

 The second reason ..

 Overview and background ..

 It seems that the price will either go up or down but the market has unlimited patterns. Most of the time the price moves in a zig zag pattern ie first up then down then up.

 Or first down then up. Or twice up and once down ....

 In addition, once or twice a day the price moves in the same direction continuously, then the technical indicators, especially the reverse indicators, prove to be wrong.

 RSI

 stochastic oscillator

 parabolic SAR

 etc ..

 The third reason ..

 Human Psychology. ۔

 Loss starts immediately after trading. Loss creates fear. It is also impossible to wait. Sleep or risk can be taken or trade can be closed out of fear. In case of closure, there will be less loss. In case of risk or profit. In either case, the human mind is not satisfied. Either fear will grow or greed and both are negative attitudes.

 Which later results in a deficit.

 The fourth reason ..

 Shopping for less money

 This facility is provided by every broker which has both advantages and disadvantages.

 This is called leverage

 It is a prudent way to make small trades even if the account is large despite the leverage, but it will reduce the amount of profit.

 The advantage is that you can wait as long as possible. This is a strategy on which some reports work. The first trade is done in one direction. When the loss starts, then the second trade is done by increasing the volume and so on. Until there is no profit, there should be maximum amount in the account, otherwise the account will be zero. If the market crashes, then the account must be very large, otherwise the account wash according to the stop loss principle.

 The last reason ...

 It is unlikely that any of your trades will make a profit.

 Every indicator has a loss in every strategy. It is not possible to estimate 100% accurately because the overall market is random because of the total investment that people all over the world make. The heavier the scale, the more the market goes. Yes, if you are able to trade trillions of dollars at a time, then you can move the currency up or down at will.


 Note ..

 There are also frauds in the name of this platform and there are dozens of types of it so doing business here without any research and without knowing it can harm you.

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