When you decide to become a trader, you might start looking for a magic answer that is “guaranteed” to be profitable. This is only natural, as humans are accustomed to looking for cheat codes. If there’s an easier way to do something, we’re all for it, especially where money is involved. This is why beginners are often drawn in by brokers that promise you’ll make a profit or by similar claims that come in the form of forex strategies or robots that will magically trade for you without ever losing money. At least, these products are advertised in this way, but it’s important to know that these are false advertisements.
If you’ve been trading for some time, you may have already gotten burned by a shady broker or invested a few hundred dollars into a forex robot that lost money. Or maybe you took advice from someone online that claimed to have figured it all out. We’re not saying that everything you read online is a lie, but it is impossible for anyone to promise that you won’t lose money trading. Allow us to explain why.
First, nobody can accurately prepare for all of the uncertainties that come with the trading market, even if they are developers or very experienced traders. In order to know these things, that person would need to be able to predict what financial institutions will say in the future, predict national disasters, and prepare for other unexpected circumstances ahead of time. Obviously, this isn’t possible.
Another cause of market unpredictability is the fact that it is moved by humans. One person might interpret an economic release in a different way than another while some might hold onto a position longer than others. You can’t always predict what other humans are going to do because different traders think differently. It’s also hard for software like trading robots to predict because they don’t think like humans, who are susceptible to emotions and other uncalculated factors.
Many trading systems that you read about online do work well under certain market conditions, but they don’t perform well under others. Things might go in your favor for a while, then you’ll start losing money when the price shifts into another pattern. This doesn’t mean that these tools and systems aren’t useful, only that they can’t be 100% right all of the time. You can also add to your problems by making mistakes like using too many indicators, which can cause delayed trading decisions or make you feel overwhelmed.
At the end of the day, every trader needs to know that there is no holy grail in forex trading. Some strategies, robots, and systems work much better than others, that much is true. You can also find some golden advice online, while others may not give you the best suggestions. The key is to figure out what works best for you, develop a solid trading plan, and to manage your risk. Also, always remain cautious when someone promises or guarantees that they can make you rich when it comes to trading.