In today forex faq, we have a question from one of our fellow traders here asking the below question
I have been trying to make money from forex trading for 2 years and I am sad to say that I have instead wiped out 2 of my accounts so far after taking different courses as well as using those robots that claimed to be very effective.
I really really want to be able to make consistent income from trading one day and therefore will like to ask for your advice on what is the one most important factor that can determine a traders success?
First of all, I must say that those robots in the market are created by marketers trying to make quick bucks from us traders. Not only you, I have received a lot of emails from readers telling me how those robots caused them to wiped out their account.
Therefore I will like to warn all readers here in my blog never to believe in those robots in the market. It is very important for you to really put in the effort to learn and practice reliable strategies as they are one of the key to unlock your trading success.
However if you ask me for one most important factor that can lead you to successful forex trading, I will say Risk Reward Ratio. This is the one single factor that can bail you out of a losing situation.
As long as you are trading with high risk reward ratio, you will always be able to get out of a losing situation easily.
Just in case some of you guys here do not know what is risk reward ratio, let me explain it to you.
The risk reward ratio refers to the amount of risk you take versus the profits you make in a trade.
For example, if you trade with a stop loss of 25 pips and target profit of 50 pips, then you are trading with 1:2 risk reward ratio.
With such a ratio, it means that your one win can withstand 2 losses. As long as your strategy has a decent winning percentage, then you will have no problem winning every month.
You can take a look at the video below where I show you the 3 BTB trades taken recently for user of my BTB trade copier service.
From the video, you can then understand why the BTB can make money consistently for me since 2009.