Hardly anyone will tell you the truth about trading because they are trying to sell you something.
Most beginning traders are sold on a lie of instant riches in forex trading. This gives them unrealistic expectations on what to expect from their trading, and usually leads to disaster in the form of blown accounts, or major drawdowns. When they join a signal service, they often arrive with the same unrealistic expectations. Their thinking process says; "I know you can make big money at forex, I couldn't do it myself, but hopefully this signal service can". The lie of instant riches, is the real problem, and that's what needs to be abandoned. Forex trading is not a get rich quick scheme. It's a professional endeavor where the calm, patient and level headed thrive by growing slowly. If anyone tells you otherwise, they are selling something. Sooner or later every trader will realize this truth.
Chart: (see below) Please note the balance line is fluctuating but the overall profit trend is up. This is normal. There are winners and looser's. Sometimes (as in Feb.) there are more looser's than winners. Other times (Jan and March) there are more winners than looser's. You cannot lose faith in the hard times. The idea is to grow the account over time. Like price, it fluctuates in an up trend. Profit will also fluctuate as it grows.
Draw down: In most trading systems a 10% draw down is considered normal and it is guaranteed to happen sometime in the trading cycle. This is why we manage our position sizes. It's NEVER a matter of IF you will get a bad period of loosing trades, it is ALWAYS a matter of WHEN you will get a bad period. It's going to happen, so plan for it. ALL professional traders understand this. Amateurs give up at the first sign of trouble and never get the losses back. Keep your trades at a sensible level of 1% to 2% and you can ride the losses without having a nervous breakdown.
WInners V's Looser's: If your winners are bigger than the looser's and your win rate is 50%, you will be in profit. So I'm telling you that you can win 5 out of 10 and loose 5 out of 10 and still be in profit as long as your winners are bigger than your looser's. My win rate is usually around 60% on average (winning 6 out of 10). My target trade ratio is 1.5:1 and better on average. (sometimes I take 1:1 trades and other times 2:1 trades) . For Example: In real cash terms at 1.5:1 I win 6 trades at $1500 and lose 4 trades at $1000. 6 x $1500 = $9000 and 4 x $1000 = $4000, Total profit is $5000. This is done only winning just above 50% of the time.
|Deposit/Withdrawal:||100 000.00||Credit Facility:||0.00|
|Closed Trade P/L:||9 366.42||Floating P/L:||0.00||Margin:||0.00|
|Balance:||109 366.42||Equity:||109 366.42||Free Margin:||109 366.42|
|Gross Profit:||50 218.30||Gross Loss:||40 851.88||Total Net Profit:||9 366.42|
|Profit Factor:||1.23||Expected Payoff:||90.06|
|Absolute Drawdown:||117.00||Maximal Drawdown:||10 068.28 (8.71%)||Relative Drawdown:||8.71% (10 068.28)|
|Total Trades:||104||Short Positions (won %):||70 (44.29%)||Long Positions (won %):||34 (52.94%)|
|Profit Trades (% of total):||49 (47.12%)||Loss trades (% of total):||55 (52.88%)|
|Largest||profit trade:||4 080.00||loss trade:||-2 375.00|
|Average||profit trade:||1 024.86||loss trade:||-742.76|
|Maximum||consecutive wins ($):||10 (11 929.60)||consecutive losses ($):||8 (-1 412.40)|
|Maximal||consecutive profit (count):||11 929.60 (10)||consecutive loss (count):||-8 235.50 (4)|
|Average||consecutive wins:||2||consecutive losses:||3|