What does it mean to survive in forex trading? I think it means more than just trying to make a profit. To me it means sticking with it, learning reliable strategies and not quitting when you take a few losses. If you stay around long enough, follow your set trading plan and take your profits as they come, you will be there when a “big move†comes along which can be extremely profitable.
If you have a trading plan and a trading system to guide you then you will be able to take a few losses and catch the big moves. The statement “cut your losses short and let your winners run†is a very powerful concept. Use good entry and exit signals; trust your indicators and you will have some small losses, but many more very large gains.
Many people go for a home run every time at bat. You can have home runs if you get good at the basics, have discipline, and consistency in your trading. If you get 20 pips each day then at the end of a month you will have around 400 pips. Add the home run on for another 100 plus pips, and now you are at 500 pips for the month. Good steady growth in your account like this is much better than a savings account.
It is a wiser move to become a good trader rather than a lucky trader. I have talked to traders that have made $20,000 in 2 months and in 2 days lose $24,000. They were guessing which way the market would go and got lucky because of a good trend. Then not knowing the signals for a trend reversal they started to trade in the other direction because they thought the market was turning rather than letting the market tell them which way it was going and when it was going to turn, or change directions. They were using signals that were obtained by past history trying to project the future rather than trading in the present.