Is it possible to win the market on a regular basis?
The forex market is a type of financial market where the main asset bought and sold is currency. Simply put, it’s a currency market. Forex is the most liquid market and at the same time the most volatile.
Often, everyone who encountered this market wondered: “Is it possible to win this market on a regular basis?” And my answer is no.
You will not find a single trader that shows 100 percent of positive deals. I’ll even tell you that the percentage of negative deals will be much higher compared to positive.
Even professional fix api traders have unprofitable operations, but that doesn’t mean they don’t make money on the market. It’s not important when you hit the target. I would highlight the importance of good capital management and risk control, which guarantee the result of trade in fix api forex.
It must be clearly understood that no trader has only positive deals without negative results. Losing deals are okay. Moreover, in my fix api trading there is Parreto principle, where 80% of all my operations are loss-inducing. But despite this, 20 percent is making me profit, which eventually results in a positive financial result.
So it’s just not realistic to earn in every trade. You can earn as a result though.
What do you need for it?
- The first step is to have a market strategy. This algorithm will be your trade strategy, which should include all points from the analysis of the asset before the transactions are performed. All risk control principles must be written in the system. I agree that there is no risk strategy (for example, fix api arbitrage) but they also demonstrate loss-making operations. The risk control should ensure that the investment capital, as well as the proportion of the subfunds, are preserved.
- Risk and money Management. More about risk: you should set this parameter to both a separate transaction and the whole deposit. This allows you to reduce the loss percent and increase the profit. I personally use 0.5 percent of risk in my system, which causes the use of short stop loss. Thus, if my prognosis is unsuccessful, it is immediately closed with minimal loss. If the prediction is confirmed, I hold the position that is roughly 1-7 of the level of loss. Turns out I have a 1 positive deal, and it covers seven loss-making. If you remember that I only have 20 percent profitable, I’m only closing 20 in plus, and 80 deals minus. With a simple calculation: 1 * 80 = 80 $ and 7 * 20 = $140. If you transfer this to the cash equivalent, the net profit will be $60 ($140-$80). It is merely a mathematical affirmation of the popular phrase that it is necessary to limit the loss and to give rise.
- Automate the strategy. If, for some reason, you are not able to control risks or follow your algorithm, create a trading robot that will conduct the fix api trading. The robot is devoid of emotion and will therefore act on the key principles of your system, thereby increasing the profitability of trade.
These methods do not guarantee you a 100 percent hit in the prediction, but they guarantee the profit in the long term. My example is proof. Remember, the dot result does not guarantee success. We need a comprehensive approach to working in the marketplace fix API forex.