Is it Correct to Expect Large Gains in Forex Trading?

By Joshua Geralds

"Wow! Look here is a great big mother of all set-ups. If I could just hit it with half my account I will make back all my losses and make some profits too!"

Has this thought ever cross your mind? Be honest now. OF course it has, and this greed attack has afflicted 100% of the traders in the market. There is no one Forex trader who enters the Forex world just to play around or to throw cash away. (If you know of any please let me know I'll trade against them!)

Humans are greedy by nature, we want more and we want it instantly. Wouldn't you be really happy if a large windfall just fell into your lap? I know I would be jumping for joy. In Forex these windfalls or sudden large gains are rare, they do happen once in a while but, mostly these are rare cases.

For a trader to make money it is not possible for the trader expect large gains all the time. This is the issue that affects most new traders. I have seen new traders go for pip gains of 50 and above pips when they trade a 5 minute time frame. While this is possible at times, let's be honest with ourselves if you are trading a 5 min frame, would the market move so much in such a short time? Unless you trade the news a 5 minute time frame would usually move in 10 pips. Now the way to make money in Forex trading is to go for consistent gains. Not large profits that come suddenly and leave just as suddenly.

One of the key challenges that a trader faces is the lack of trading disciplining. To accomplish a steady profit growth the trader must be careful to not over trade. Likewise the trader must also be wary of the death trap of over leverage. To ensure steady grow in your account is a simple thing. Just go for 10 pips profits a day. You can break even but remember you should never end a day with a loss (especially if you are a day trader)

In conclusion, do not expect large gains to make you rich in Forex trading. Instead look to consistent gains in your account. If you can manage a 10 pips profit every day you can make a million and more in 3 years!

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time only!