You see, Forex trading is an endeavor that rewards the long-term business builders at the expense of the short-term opportunity seekers.
If you want to succeed in this business, you can't approach it with a short-term mindset.
Many people first get into trading with a short-term focus. Their goal is to make within the first 12 months.
They think - understandably so - that making money last month means they are on the right track.
What they haven't realized, however, is that trading results over a period of 3 months or less are largely random.
Here the thing you need to know:
- You can trade with a losing approach and make money over the next few weeks
- You can trade with a winning approach and lose money over the next few weeks
Winning traders understand that weekly or even monthly results are poor indications of long-term performance.
In the book Fooled by Randomness, Nassim Taleb explains this with an example:
"A 15% return with a 10% volatility per annum translates into a 93% probability of success in any given year. But seen at a narrow time scale, this translates into a mere 50.02% probability of success over any given second."