The reason why the second objective of FX is to "make a profit"

Reason FX's second target is to make a profit

Those wondering, “Why second? Why not the first target?” should beware!!

Especially for people who are about to start FX, this thought may be strong.

Profit as the second priority is so important that it can be said it will never be the absolute first priorityabsolute first goalexists.

Of course, since this is investing, the purpose of FX is to make a profit, and most people start FX for this reason.

Then, what is the first goal more important than making a profit in FX?

It is, “to protect the account funds.”

The reason is that FX makes it easy to increase by 10,000 yen, butit is even easierto lose 10,000 yen.

Therefore experienced traders understand the importance of protecting account funds very well.

For beginners, the objective and the first goal often become the same: to make a profit. However, if you cannot protect your account funds, you cannot make a profit. That is how important in FX thedefenseis.

a solid defense with a fast counterattack style takes top priority. Since it is difficult for beginners to profit with a fast counterattack, a slower approach is fine. Solid defense and slow offense can still yield profit.

For beginners, it is dangerous to have an aggressive trading style with five or six forwards. Some people even have eleven forwards in an ultra-aggressive trading style. Naturally, this leads to immediate forced liquidation.

What kind of people are they?They are those who take risks with both the position size (leverage) and the time the position is held.

FX is about adjusting the risk ratio of either the number of contracts or the time held, and then earning profits through risk management.

If you take on risks for both, you can no longer control the risk.

No soccer coach would make all 11 players forwards just because they want to score, but in FX there are many who trade with all 11 players as forwards just to profit. Moreover, some people do not realize this.

That said, if you try to build a defense by having five or six goalkeepers in a solid defense team, you won’t understand defense properly, and you will end up with a loss-cut poverty situation. Therefore, after understanding defense, you need to balance risk.

Every year, there are one-hit wonders who rise and then fade away the next year, and the FX world has a similar pattern. People who brilliantly multiply their funds by tens or hundreds and then explode onto the scene the next year.As spring arrives, I always think of a few of them...