Allow me to tell you a dirty little secret. When trading forex, your equity will not steadily increase. You will not consistently have more money than you did before-and that's normal.
Let's say that you're trading is 50% to 55% accurate. In other words you get 50% to 55% winners.
Let's also say that your average winning trade is 1.5 greater than your losing trade. Fair enough? Good. Now for that dirty little secret . . .
Only 5% of the time will you have more money that you did before. Only 5% of the time will your account set new highs.
That means that 95% of the time you will have less money in your account than you did at some time in the past. Did that sink in?
For the vast majority of the time, 95% of the time, your account balance will be smaller than it was some time previous. That is normal. That's the way it's supposed to work.
So, is forex trading the perfect part time business? Is it a good way to generate extra cash? Um, no. I don't think there is any way that someone could honestly say that.
Not that forex trading is bad. It's has it's purposes (growing your wealth, etc. ). It has its place, but generating extra cash quickly isn't one of them.
Any one promising that, is trying to mislead, trying unethically to make a quick buck for him/herself. After all, if quick cash through forex were so easy, why isn't the seller doing it instead of selling the how-to? Rather obvious, isn't it?
Do you want to learn more about how I trade? I have just completed my brand new guide, “Forex Trading - What Finally Worked For Me".
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Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide