How to stay profitable on the Forex exchange

Finance

Common between the Forex market and the casino. How to stay positive.
One of the ways to make money on the Web is now Forex – a currency exchange where you can profit from currency fluctuations. There is a lot of material on this topic, but this article will consider another aspect, namely the similarity of the exchange and gambling business.

General rule.
An exchange, like a casino, is a system that does not produce anything, but requires resources for its maintenance. Therefore, to maintain the functioning of such a system, it is necessary that the total losses of participants (traders or players) exceed their total profits.

This is a classic conservation law, which is introduced in high school. But, despite the similarity of the exchange and the casino in principle, there is a big difference in the psychology of visitors. If they come to the casino only from time to time to relax and get certain emotions with a willingness to pay for it (we are talking about adequate players), then to the stock exchange – with the specific purpose of earning. Such an attitude, of course, mobilizes thinking, but, on the other hand, it also limits it.

How to stay in the black on the stock exchange.
Stable – nothing. The main misconception of most people is that: “This definitely won’t happen to me!” However, a few tips in the spirit of this article can be given.

Stereotypes.
The reason for newcomers’ disappointed expectations and losses very often lies in the fact that some things are not fully told to them. Here are some of those moments.

Any stock forecast and any indicator predicts the situation only with some probability, but not absolutely. A typical example is the so-called “stock event”. The bottom line is that if some transnational corporation conducts a major deal, then it will buy or sell the necessary currency (a very large amount), not looking back at the stock exchange situation, but changing it very much. Also, as an example of such an event, one can name “currency intervention” – measures taken by a particular state to strengthen or weaken its currency. Therefore, “stop-loss” and “take-profit” are mandatory.

Such a section of technical analysis as chart figures. Everyone is told about the “double top”, “head and shoulders”, “flag” and other figures, but the fact that all these figures are visible only after the fact is mentioned much less frequently. In practice, no figure is yet visible at the “decision point”, and self-confidence can fail. In addition, different figures can be obtained on the chart on different time scales. Practical advice here can only be to use “figures” as a secondary argument, and focus on other factors.

The suggestion “this is not gambling, only cold calculation, anyone can earn!” This is nothing more than an advertisement. You can always ask: “Why are you looking for students / interns then, and not earning quietly?” The path of small traders is to try to get into the “wave” of the market and make some money on this wave. Yes, nothing more.

Is it still possible to make money on the stock exchange.
Can. Yes, there are people who live on the stock exchange. But in order to get closer to their level, one must at least be imbued with the proverb “He is not a merchant who has not gone bankrupt twice” and be prepared for such a scenario.

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