Is Forex Trading Profitable For Everyone?

Hint: when you’re making winning trade, someone else has to take the losing end

Rio Renata
Jul 21, 2017 · 3 min read

You may have heard these typical ads line, “trade Forex now with small capital under US $xxx and multiply it overnight!” or “work from home, make thousand dollars day-trading Forex!”

Well, to be honest, most educated people can smell something fishy about those lines. They just don’t add up, it’s complete bull crap. And you know what? You’re right.

Wait, don’t leave yet! There’s still one thing worth noting if you ever consider trying to trade Forex.

Let’s be honest, Forex trading is zero-sum game where one earns winning prize from the losing party. However, there’s occasional events where central bankers/market makers are willing to lose to keep liquidity afloat.

Do you recall what happened on Britain during Black Wednesday? Speculators, George Soros among them, made Bank of England £3.3 billion short. That was the actual example how big speculators can win Forex trading against the central bankers themselves because even the market maker has to keep the liquidity in check, forcing them to take the losing end.

All things being equal, not everyone will get that piece of tasty pie

So, if you ask me again how an average-Joe make profit while day-trading Forex, the answer is deceptively simple, “make sure someone else gonna end up taking the opposite end of your market order as a loser.”


No one can win forever, in the end they’ll have to face losses

With that zero-sum game reality, everyone will do their darnedest to knock off their competitor. Be it spreading false rumors to creating temporal price spike to trap beginner, Forex trading isn’t for the faint of heart. But one thing is sure, no one can keep their winning streak running forever.

Under such condition, winning strategy mattered less as everyone will eventually face losing position(s) in Forex trading. What matters is how you make sure the losses are less frequent, smaller than the profit you’ve earned.

Let’s illustrate it:

John already made 10 closed position in which half of them were losing. That may seemingly discouraging at first, but even with 50% win rate John can still make profit. How?

Let’s say he made US $100 by average for each of the winning position. On the other hand, each losing position averaged by US $50. At the end of the day, he roughly pocketed up to US $250 profit.

To do so, you need to garner awareness to keep your trading position secured. You can simply learn how to secure your active trading position with basic Take Profit and Stop Loss feature which is available on most trading platform by default.

Remember, it doesn’t take rocket science insight to notice zero-sum game reality on Forex trading. It’s simply a game of surviving odd chances. That’s why professional traders don’t stress on accurate trading signal, but rather how to cut the losses early with Stop Loss and secure the profit with Take Profit.


Want to get yourself deep-wet into Forex learning? We got you covered, in Forex playground we educate beginner trader to trade correctly. No more boring flat contents, we promise you.

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Rio Renata

Written by

Trying my darnedest to educate people how to trade Forex

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