There are a lot of people in this market who would like to make money but they could not do it because they are random trading the market. Many people have this misconception that if they trade randomly in Forex, they can make a lot of money. This market has no patterns and you do not need to analyze the market to make your money. You have to place your trade in Forex and you will see your profit in your account. This is not how traders trade in Forex. This is an online investment market and there are many people who try to spread this rumors and take the money from the people. Many people do not know what they will get if they randomly trade in a market. They try to random trade in demo accounts but they do not get the same success in their live accounts. This article will try to explain why random trading has different results when you are trading in Forex demo accounts and in live accounts.
High-frequency trade executing
We all know that trading is one of the most difficult professions in today’s world. Many people have started their trading career but failed miserably. You need to understand the associated risk in trading to become a pro trader in the Forex market. Being new to this industry you need to develop a balanced trading system based on your trading knowledge. Emotions have no place in the field of investment. Those who are successful in Forex market have worked hard really hard to develop a balanced trading system. Instead of placing random trades you need to use your rational logic to find the high-quality trade setup. Some retail traders often say that they know all the details of this market but if it was true, they would have been a millionaire in today’s world.
You need to differentiate between confidence and false confidence. If you are dealing with the options trading industry, you need to make a sure low-risk exposure in trading. Most importantly you will also have to learn to embrace managed loss. No one knows the outcome of each trade in Forex market. So it’s always good to be prepared for the worst case scenario from your trade execution.
Random trading in demo accounts
When you first started trading randomly in your demo accounts given by brokers, you do not realize how many trades you are placing on the market. This is one of the reason many traders complain they have a successful career in their demo accounts and they make a lot of profit. If not much but they made a small profit in their demo accounts. Things begin to change when they started trading in live accounts. You need to understand that you cannot expect to make the profit in live accounts when you are placing many trades. It is only possible in demo accounts because you will take into account the successful trades. You do not know how much money you have lost in your other trades. Random trading is successful because you overtrade in demo accounts and only count your successful trades.
It is not possible to make your money into live accounts when you trade randomly. In live accounts, you will try to make every trade profitable that is not possible for the traders. If you try to overtrade in live accounts like in demo that many traders do, you cannot make your profit. You have to make the money slowly and it will make your career consistently in Forex. People take into account every dollar they have invested and that is when they know they are losing money with random trading. Demo accounts are free and you trade as much as you want. You have to know that the fate of random trading is not good. It can only land you in more loss.