XM Trading:Why Forex Trading Is Not a Game of Luck


It is often pointed out that whether you win or lose in trading such as Forex and stocks is only luck. There are places where this is true, and there are places where it is not. But why is it that there are still a few people who continue to win?

No investment is 100%

Fundamentally, there is no concept of 100% investment. Some people often use the words “guarantee” and “absolute”, but those who have a strong sense of this concept may not be suitable for investing. Scammers often use these words, but only investment products introduced by scammers are 100% guaranteed to lose. Because it is based on the assumption that you will cheat from the beginning.

On the other hand, it is impossible to win 100% of the time. The reality is that even the world’s genius traders cannot achieve this. That’s why many people call FX, stocks, and virtual currencies speculation instead of investment.

Investing is putting your own money in the hope of making a profit. Insurance and bank deposits may be a good image. There is a risk of losing the principal, but it is unlikely that a sudden change will cause a big loss.

Speculation often refers to FX and stocks. Speculation is an attempt to profit from short-term market fluctuations. I think that the word “pottery” fits well with the market, which is prone to sudden fluctuations.

Winning traders don’t have 100% win rate

Winning traders look like they win 100% from the outside. But the reality is not sweet. No matter how successful a trader is, there will always come a time when they will lose. It is said that even a winning trader earns an annual interest rate of at most 20%. This is the winning percentage of Warren Buffett, a world-famous investor. Even such celebrities earn only 20% annual interest.

The element of luck is inevitable in Forex

Market movements are random. Therefore, the element of luck is absolutely inevitable. It would be nice if the market always moved regularly, but in reality it is driven by people’s emotions. Since it is not a game with a 100% win rate, there are streaks of wins and streaks of losses. Therefore, the reality is that you cannot escape the element of luck.

Why FX trading is not a game of luck

But on the other hand, there are reasons why Forex trading is not a game of luck. This is for the following reasons.

You can control the odds of winning

FX has the advantage of being able to control the winning rate. This is because the entry point and the take profit and stop loss points are determined by the user. In pachinko and games, the winning rate is often controlled, but in FX, the winning rate can be changed according to the user’s strategy. But it can’t be 100%.

Market forecast

FX fluctuates greatly due to economic indicators and politics. Most forex websites only emphasize economic indicators, but politics is a big factor in modern times as wars are real. You can take measures to prevent losing in advance by not entering in the first place while expecting a big event and doing nothing.

Any method

The reason why FX is not a game of luck is that it is possible to increase the winning rate to 50% or more if you fight with a fixed method. If you do one battle thousands of times, you will be able to see the entry timing, profit and loss cut points. By mastering it, you will be able to see where it is easier to win. FX has no restrictions on the method, so you can decide how to fight yourself.

Free entry timing

Basically, the entry timing is free for both stocks and virtual currencies. In other words, you can increase your winning rate by picking up and entering only places where you have a high chance of winning. Gambling is often difficult to decide the timing by yourself, so you can see that FX is different.

Review trade results

It’s actually difficult for traders to find out why they lost, but if they lose, it’s important to do a thorough analysis. Trade results are directly linked to your actions.

  • bad luck
  • Was the market analysis wrong?
  • Didn’t you follow the trade rules?
  • Were you emotionally disturbed?

When you lose, it is important to review the above carefully and make use of it next time. By doing this, you can increase your odds of winning. If you repeat this cycle, you can increase your winning percentage.

If you are interested, please open an account. If you are unsure, you can also create a demo trading account. XM is one of the world’s most popular Forex brokers. You can trade with confidence.


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