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Most traders have heard or read about a very common myth which says

that 95% of people that try their luck in the market fail to succed. This

myth is based on general statement that is actually incorrect, without any

solid evidence and with flawed logic. Unfortunately alot of potential

traders believe the myth and are overcome by fear from the very start of

their trading career.


This is a very important question that deserves a discussion based on

logic and not the vague general statements that we often find on the

internet. Let’s start with some supporting evidence and logical thought,

to give you some confidence and remove some of tge ”i’m just another

doomed trader” thoughts that you have had or are you having them right

this moment.


There are always people making money on the market, you could say that

in theory for every loser there is a winner. But consistently making money

is something completely different. In the long-term there are going to be

more traders that have lost their money than the ones that have made it.

95% of traders are not professional or full-time traders, but this does not

mean that 95% of traders don’t make money in the long-term. Many

beginning traders over-trade or over-leverage their accounts because

they aim to be ”professional” right from the start. Your goal should be to

make profit at the end of every month, if you acomplish that you are not

yet a professional but you are a profitable trader. If youvaim to make a

profit each month your chqnces of success will jump real high. With time

you gain more knowledge and skills and you can change your goal from

profiting every month to profiting every week and eventually to pro-

trading. You will see your trading skills are improving and your account is

growing. But first you need to understand the diference

between”professional”/full-time trading and being a profitable/part-time


Traders that want to make money and become good traders, have better

chances at succeding in the markets in the long-term. There are reasons

why this is so, let’s explain them in more details.

First reason why you have better chances to succed if you lower your

expectations of ”professional” trading right from the start, is because it

puts you at a much more advantageous emotional point than expecting

to become a pro the first month you starr trading. When your

expectations are reasonable, you won’t have desire to over-trade or to

trade large position sizes. When your goal is to be profitable at the end of

the month and not to make a living from trading like most beginning

traders feel they need to do, your temptation to over-trade and over-

leverage your account is really small.

If you don’t feel pressure to depend on your trading exclusively for

income, you get rid of most if not all of the emotional bond to your trades

and to the money you have at risk. Releasing your emotional bonds with

the market is the easiest and quickest way to success, you just need to

have realistic expectations, so don’t expect to become a pro-trader right


trader you can make profit, and the statistic of people that make money

every month is 20-30% not 5-10% we so often hear about.


Let’s take a look at some actual facts and figures, so you can see your

actual chances of making money as a Forex trader with an effective

FOREX TRADING STRATEGY vs. a trader without any strategy at all.

We will take a ”control group” that will present the risk reward ratios,

and the ”variable group” that will present the trading strategy or entry


Let’s first take a look at what it takes to be a break-even trader in terms

of risk reward.

As you can see in the chart below, with a risk reward of 1:1 you have to win

50% of your trades to breakeven. As your risk reward moves up you can win

less of your trades and still breakeven; a risk reward of 1:2 requires only

winning about 33% of your trades to get to breakeven, and a risk reward of 1:3

requires you only to win about 25% of your trades to breakeven, take a look at

the chart:

If you want to be a trader who simply makes 1 times risk on each trade, you

have to win 66% of time with a risk reward of 1:1, 50% of the time with a 1:2

risk reward, and with a 1:3 risk reward your winning percentage can be as low

as 33% to make a 1R profit.

The power of RISK REWARD IN FOREX TRADING is a common discussion in

my aticles and for good reason. Rvery trader must understand and seè

that by letting your wins out-pace your loses, your way to successful

trading will become easier to achieve.

But over the long-term, risk reward is not the only thing that makes a

profitable trader. You need a high-probability trading edge like PRICE

ACTION. And that will increase your chances for making money


The chart below on the left displays how many winners are required to

breakeven with no particular trading edge, basically, over a long-series of

trades, you will breakeven by winning 50% of the time on a 1:1 risk reward

ratio, 33% of the time on a 1:2 risk reward ratio, and 25% of the time on a 1:3

risk ratio. With only random entry and risk reward in Forex trading, you are

likely to just perform around breakeven over the long-run.

Now compare this random entry risk reward model with the chart on the

right; it shows your approximate chances of winning using a high-probability

trading edge like price action trading strategies in conjunction with the power

of risk reward…

Your chances of winning will be lower when the tisk reward ratio raises,

it happens so because your target moves further away, but your stop loss

stays in the same place. In the mean time as the percentage of your stop

getting hit is increasing so will your target, so you need to stack the odds

in your favor as much as possible by using a high-probability entry

method like price action.

From images above you can see that an experienced trader with a solid

FOREX TRADING PLAN who knows exactly their way around the market,

has a much better chance to make money , than a non-experienced

trader who is essentially entering ranfomly. The reason why so many

traders lose money is because they

1. Don’t understand risk reward and FOREX MONEY MANAGEMENT

2. They have not fully mastered a highly-effective trading strategy like

price action

Your firsst priority as a trader should be to master these two things.


Chances to become a profitable trader are very good if xou do things

likr discused in the article. But be careful I didn’t say ”professionale

trader”. The reason I didn’t say it, is because as we stated above, your

goal at first should be to be a profitable trader at the end of esch

month. That’s a goal that is easier to achieve at the beginning. Doing

things this way will give you a realistic goal and your chances for

success will increase dramaticaly. You will avoid common mistakes

that many traders make because they try to rush into being a pro right

away. Start with a plan to trade part-time and do it successfully. You’re

attitude should be to TRADE LESS AND PROFIT MORE/SET AND


In the end, I just want to say that i get responds from people thst read

my articles all the time. From people that are truly making it in

theirbtrading, not because they are professional full-time traders but

because they learned the importance of effective money management

and price action trading, combined with one another. Having a solid

education in an effective trading strategy and truly ”mastering” it

increases your chances of making money consistently in the market.

As a Forex trading coach it’s my goal to push traders onto the correct

path that gives them better chance at success in the Forex market. So

it’s a great satisfaction to know i helped so many traders through my

courses and lessons and that because of it they have a better chance

at making money consistently than someone that has no forma FOREX

TRADING EDUCATION or no effective trading method