Traders use the same strategy but have diverse results when implemented in the market. This is a dilemma because the method should have the expected outcomes. In forex, many people want to know why they are not getting the expected results like the professionals when their advice is followed. This is challenging to explain but many believe some concepts will help to understand the situation. Though the plans are the same, the way these are implemented and the emotional aspect is not taken into account. For example, a person can be emotional after losing money. He will start looking for trucks to get the lost capital and implement a scalping technique. With the knowledge, this is impossible to profit but he is desperate. The result will not be the same for individuals who have years of experience in the industry.
In this article, we will explain this concept and expect the investors will comprehend the market. Following a professional does not make a person expert in currency trading. An expert has knowledge which he has learned but a novice does not have that mind. Don’t think you are on the right track by taking premium courses. An investor needs to practice using the skills to make money.
The mentality of the retail traders
The mentality of the retail traders greatly varies. Based on your mentality, you should prepare a strategy to trade stocks and shares. Following other people’s systems or buying the most expensive EAs in the market is never going to work. To be on the safe side of trading, you should always think rationally. Have faith in your skills and use the paper trading account to develop a robust technique. It’s not necessary, you need to follow the professionals to make some serious money.
Every method is implemented in diverse situations
No context is the same in forex. Every moment the sector is evolving. This dynamic concept makes it challenging for the community to profit by using the same technique. Without understanding how the market has evolved, it will not help to grow the account. An example is the historic trend analysis provided on websites. These are analyzed by experts and they provide their opinions. The community read their tricks and develop a plan. When the market is exhibiting the same trends which were explained in the resources, traders found the result is not as expected. The trend, the volatility, and even the movement were going in a favorable direction and it appeared as a profitable plan to implement the method described.
The majority of the traders follow this way but never get to make money. The reason is they never take into account the changing context. The world has changed, diverse information is affection the finance and governments have taken policies. All these developments are changing the volatility even though it may appear like the examples. Only individuals with no knowledge would rush to invest while the experts will stay put. They analyze the trend and find out if the volatility will stay long to make money.
Understand the industry has changed. Every pattern appears for a reason which should be incorporated in developing the method. Never follow a trick without knowing how to improvise when required.
Depends on perspective
If you want to know what the most profitable method in forex is, the answer will be confusing. Many will say scalping is the best method while the community will disagree. The community believes using a long-term strategy is profitable as it helps the individual to cope with the developments. Perspective can be an important aspect when it comes to using a method. When traders use the same plan, they are not having the same expectations.
Most want to make money without waiting for a long time. If they use a professional technique that takes time to make a profit, this will be challenging for them. Experts can afford to wait because they know what they are doing. They know eventually the trend will get in the expected direction which will reward the traders. This is why investors have diverse results after using the same strategy.