There are a lot of factors that go into the outcome of every trade, and it's certainly not without luck (and bad luck every time you lose even though you've done so well).

It's bad luck when you have a favorable trading signal, you analyze it thoroughly but still lose money in the end. But in return, sometimes you want to break the rules, take a much bigger risk, and still win.

So does this "unlucky" factor really determine your trading career?

Newbie's Luck Mistake

A lot of traders who have just started trading for a few days, weeks or months have already started to make a profit (even a big profit). However, many new traders have lost money at this first stage.

This has caused a mindset (in new traders) that is "win or lose by luck".

This thinking is similar to gambling addicts.

There is nothing happier than the feeling of double or triple wealth quickly. Any trader who has that will think that trading is easy.

But is it really that easy?

The market will give you some luck, but when the price starts to move in the opposite direction, it is time to distinguish whether the holder is a trader or a gambler.

When encountering the first big losses, new traders will fall into a feeling of disappointment, even despair if they lose too much money. Many new traders even "all hands" on the rest of the account to remove the gauze. But not everyone continues to be lucky to be removed.

Luck is not the deciding factor in whether you trade successfully or not.

In contrast, luck (almost) has nothing to do with trading. Even if you have a losing trade, if you are a person with a plan, the outcome is simply in your calculations and preparation.

Profitable traders don't fear losses, because it's just a cost to them to get a bigger profit in the end.

How to minimize the role of luck in the trading process

Here are the steps for you to minimize the role of luck in trading:

1. Find or build an effective strategy

A trading strategy is a combination of certain rules that you must follow in order to find a trading opportunity with a higher probability of winning.

To find a trading strategy is not difficult, there are now a lot of materials sharing strategies.

However, it should be noted that not every trading strategy is right for you. Even if the sharer achieves success, it is unlikely that you will achieve the same.

So it leads to the second step.

2. Test and evaluate your strategy

To find out which strategy is really suitable, you need to research, test and evaluate trading performance.

One of those rapid testing methods is backtest, which means you test with past data to evaluate the strategy.

Backtesting is not enough, you make demo trades with that strategy (ideal number of test trades is 100 trades).

3. Build a trading plan

The final step to reduce the risk factor in trading is to develop a plan. The main plan is your preparation for unfavorable trading scenarios.

To build a plan you can do the following:
  • Pick one or more strategies that have proven effective
  • Identify suitable currency pairs and trading sessions
  • Order holding time
  • Risk level
  • Follow the news
  • Handling error transactions
  • And many other factors
4. Long-term vision and goals

In fact, luck does not make a trader successful, only long-term vision and discipline can help him do it.

You should look further ahead and set a long-term goal that you want to achieve.

In a few days of trading, you will probably lose, but what you are doing will give you a profit after a year and a lot of profit after a few years.