Traders don’t make always money in Forex. Frequently they incur losses bit with the help of the right choice, they come out from the losses. This trade is known as the “golden trade” which compensates for the loss. This concept is new in Forex and beginners have not heard of it. Yet investors should use this information and plan their strategy. In this article, we are going to discuss this concept. People who are interested in currency trading should read this post as it will help them to learn more about the market. Though things will be hard at the intial stage but you must not lose hope or confidence.
What is this concept?
This is about a particular trading proposition which implies one order is going to erase all previous failures. This sounds like an impossible task but when a person is following this rule, it is possible to achieve. However, there are certain dangers. For example, traders don’t know when this trade will appear. It can appear instantly or they have to wait. A person cannot keep trading for infinity without making money. From this perspective, professionals don’t approve of this method. This is regarded as a quirky technique that has dubious merits.
Yet many online websites promote this strategy as a backup plan and inspired to keep on trading. The ultimate reason is to make money which will come eventually. But to keep things organized, you should trade with a broker like Saxo markets because they care about their clients.
Is this even a feasible strategy?
We know performance depends on skills. No one is going to be successful if he doesn’t master the basic plans. If we think for a while, this seems like a trap. The majority does not like to spend time improving and identifying the errors and this is the best plan. Every person has style. There is no uniform formula to succeed and participants work on strategies to find a suitable method.
What are the pros?
First of all, having one golden ticket will compensate for the loss. Consider you have lost few trades and the balance is negative. By winning one order, the account will turn into a positive balance. This goal keeps investors using this method even during failure. Secondly, this is a motivating tool. Frustration occurs when we are depressed. Investors expect rewards but rarely get the results. Gradually, they become depressed. By believing in this method, people feel energetic and try to analyze the market with renewed spirits. Thirdly, there is a psychological element that governs the mindset of traders.
Decisions are taken in the minds of individuals. If we are not confident, the tasks will not be completed successfully. A skeptical person always doubts the method and fails to get the expected results. Even small fluctuations can panic the community. By believing in this positive idea, the community feels confident in its decisions. If one trade can wipe out the failure, why not keep trading?
The drawbacks
Unfortunately, a few drawbacks exist also that can negatively affect the performance. Skills are required to win money not belief in a certain method. This contradicts the principle of currency trading and people feel frustrated. Professionals’ advice is not to believe in the “golden trade” because this is a dangerous scam. By putting their fund at the stake based on this idea, people prove they are on the wrong track. Success is not relevant with lucks and only practice can change the outcome in currency trading.
Conclusion
Trading should be done strategically. Create a sequential step so that you don’t have to rely on emotions. Taking emotional steps may cause you to lose your entire trading capital. Instead of taking the trades with real money, trade in a paper trading account so that you can develop a robust strategy. Back-test the system and evaluate the pros and cons of that strategy. Once you finalize the trading method, you should be able to trade with confidence.