Now everyone’s talking about giving off one secret to getting profits or the other. Not all of them are worth it by a long way. The only thing which matters at the end of the day is profits other than losses. If something does throw up a devilish loss, it’s a learning curve from the point of not repeating it again. To hit the nail right on the head though, Forex always can be profitable.
If you’re still stuck at trying to understand why start learning about whether this market is profitable or not, that’s not the point. Instead, the point is, profitability is a natural pointer of this financial market. There’s a lot of money around but it’s obviously going somewhere. Know these before going forward with a transaction the next time out. Here’re 5 things to prove it to you.
5 Secrets which you must know before you trade in Forex Again:
1. Someone’s Always Winning
To repeat from before, all that money is going somewhere. If someone wins, if you win, you’re winning someone else’s money. No not exactly.
Whatever goes into this market comes out of it in one way or the other. If USD is losing value and if you’re trading with USD, well, bad luck. If instead, you’re lucky enough to have some JPY lying around, just carry it over. Dollar falling against the Yen is a carry traders’ dream scene.
What matters then is to know which currency’s going to nose-dive and which one won’t. That’s it. There will always be that one transaction which will end up on the losing side of things. You can win it back. Forex always can be profitable and it is.
2. Your Brokers’ Paying for Your Profits
Leverage is the key to 99.9999% of newbie traders investing into this market. Why? Well, if you have a 100:1 leverage, you’re investment simply inflates a 100 times. Obviously, profits from it will end up in just the same situation. This is just what pulls individuals towards investing in this financial market. Where does it come from? Your broker’s paying up, paying up big time.
There’s a catch though, what goes up will come down. What if you’re not there to catch it? Simply, that 100 times the profit can easily translate into 100 times the loss. Leverage is a double-edged sword. If you lose, you’re simply putting that money in your brokers’ account. That simple.
Never knew this did you? If you did though, what’ve you done about it? The thing is, there’s nothing much to be done at all. All of this is just part and parcel of trading in this market. It’s an open secret, at least now that’s for sure.
Whether Forex always can be profitable or not this depends on which side of grass you’re having. A transaction in this market can end up as a loss or it can be a profit. There is always two sides to this coin and that’s how it’s always going to be. Capiche?
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.