1. WE NEED MONEY TO MAKE MONEY

Although many traders have been successful and make a lot of money with small capital size, they also face the pitfalls associated with trading small accounts, which is what they have to accept. a bigger risk.


Having a large account and large capital will make it easier for you to implement risk management measures. This means that you only need to enter an order with a percentage of the total capital small enough to be able to earn the right amount of money for everyday life. Imagine you only have $ 1,000 capital, let's say you apply the 5% risk management rule to 1 trade, with an R / R ratio of 1/3 for example, the maximum amount you can earn per transaction is about 150 $ if you're lucky. If you want to earn more, you will have to increase your risk level, but without luck, your account will be greatly reduced.

Don't get me wrong here, you CAN definitely start trading with just a small amount. But it's really hard for us to make money, and bad traders can blow it away in that ambition.

Trading is not a hobby. It is a business. And like most businesses, we need capital to make a substantial profit. Don't expect to earn hundreds of dollars per week on your 50 $ account.

 2. YOU MUST ALWAYS TRAIN IN THE MARKET:

One of the most popular trading tips is "Always act during the most volatile times of the day."

This strategy is fine. If you are a newbie getting into the market.

If you are serious about developing your trading skills and confidence, you must trade when the market gives you the most opportunities. For most traders, this usually means trading European and American sessions.


Just like how a doctor finds more diseases in a tropical country in the less developed countries than in the suburbs of the developed world, traders trade in trading sessions. More aggressive will likely train their skills faster than they trade during quieter sessions.

3. YOU WILL BE WRONG. A GREAT NUMBER OF

No single trading system can be profitable under ALL market conditions, even your proven ones. Under different conditions, the accuracy of trading systems will also vary. And you have to accept the fact that you will be wrong a lot.

So how do you still be profitable even when you're wrong?

Focus on the R / R ratio first: Remember that a trader does not have to have a high win rate to be profitable. Some traders can profit with a low win rate if their average winnings are high enough.

Next, instead of focusing on winning, focus on learning the art of "feeling" the market. A trader can quickly identify changing market conditions that will enable them to manage their risk. They can limit their entry orders in sideways market conditions, rest in the volatile whipsaw market, and accept risk expansion in a trending market, for example.

Which brings me to my next point ...

4.  THERE IS NO CHALICE IN TRANSACTION

There is no "holy grail" or an indicator, method, strategy, or system that can bring you 100% foreign exchange trading profit.


Just because you don't have the holy grail doesn't mean you can't make a profit. Many traders are already making a profit.

It is important to control your risk. Since you cannot eliminate it, the least you can do is control it by properly managing the risk.

5. TRADING IS NOT FOR EVERYONE

There are many reasons why 95% of new traders always fail.

The truth is, we need TIME, EFFECT, and PATIENT to become consistently profitable. Those who cannot or are not willing to accept all three will find themselves among the 95 percent above.

It is also possible that a person is not interested in trading. It is not included in this case. You wouldn't force someone to join the army or play the piano if they weren't interested or dislike, would you?

That said, you won't know if trading is for you until you've been trying hard enough and putting in enough effort to make a continuous profit.