Every forex trader, an experienced one or a beginner who is keen to learn about forex, would like to know how to be profitable every day. How to close every open position with a profit. How to win at forex every time is a question worth of millions.
What you mean by “every time”
To get a solid answer we need to know what “every time” means. Is it every single trade or every position trader opens? Or is it every month, quarter or year?
Note: position on currency pair is sum of single trades trader open on that pair
If you think about every single trade or position, then the answer is simple. It is impossible. There is no trader with just profitable trades. If you know some, give me a call, send me an email. I want to know him. It would be definitely a genius. Extinct genius.
Long-term wins are a key
As we already wrote in How much forex traders make a day, looking at day profitability or single trade profitability makes no sense.
You have to look at a bigger picture.
You need a longer period of time, a bigger sample of trades for evaluation. It is the same everywhere in the financial industry. Mutual funds, Hedge funds or banks report results every quarter, but yearly results are most important.
Every time for forex trader
Every forex trader has to keep in mind, that it is not just about profit on every single position. It is more about keeping the overall balance in green.
Minimalize your losses, when a market goes against you and maximize profits when the market goes your way. The order management is key in reaching your profit goals. It is not easy, but not impossible.
In past, when I run successful forex business, every time meant month and year, for me. I did not want to finish the month in a loss, but of course, it happened. Most important was a year, to be in a green at the end of the December was crucial.
Yearly results are results you have in your annual report. Yearly results will be shown to existing and potential investors. Therefore every time does not mean every day, but every year. Although I like winning days more than losing ones, too.
How to win at forex every time or forever?
At the end, we need to say this. There is much more losers on forex market as winners. To be a winner at forex means to be profitable in really long time. Not days, not months, not years.
If you are profitable after 5 years of trading, that is great. But it does not mean, that next year you will not lose everything during a market crash on your preferred currency pair. (see SNB, CNB or Brexit story).
The successful trader has to be on alert every day, every minute to prove that at the end of his trader’s life his P&L balance will be green.
If you read everything written above, you will understand our final statement. For beginners, the right answer for “how to win at forex every time” usually says “you will win every time you are staying away from markets”.