Many newbies will tell you that your equity curve consists of a constant to the curve followed by a sudden drop or a continuous downward curve. There are very simple reasons for this fact, some of which are easier to control than others, but the basic reason for the lack of continuing growth is because they are not stacking the odds in your favor when trading the Forex.
The Odds are normally associated with the group of players and not of the investors in the markets, however, in all aspects of the investment is not a game of chance and odds of success. In a casino the odds are stacked in the favour of the casino that is why the house always wins. Of course I’ll pay sometimes, but the odds dictate that they will win in the long term.
As a trader it can and should be staking the odds in your favor, so you only need to win a small percentage of times to win in the long term. The simplest way to do this is to make sure that when you win it returns a higher percentage than when you lose. This process of down to the commercial management, risk management, and, of course, the right mental attitude.
Players the risk of money for fun, fun is high when they win or, in fact, during the process of waiting for the result to reveal itself. Players are now professionals or successful traders are do not have that feeling of euphoria or disappointment over the result of a bet or trade. The reason for this is that they are mentally attentive to the odds and the fact that the odds are in your favor, so that the long-term result is all that matters; the loss and gain are just part of the process.
If you are new in the Forex trading and the experience of the fairness of the curve of the problems that many do, then we will give some tips to change that from now on. Whatever strategy you are using to enter, exit and manage your trade is part of this strategy should include risk management. Risk management is what is going to stack the odds in your favor. Each time you take a trade you should always aim to have a profit that is 3 times bigger than your stop loss is placed. If you follow this simple rule, you only need to win 50% of their operations to obtain a benefit.