No “Definite Formula” In Forex Trading
Anyone who has spent any amount of time trading Forex will tell you that there is no “sure formula”, or one indicator, method, strategy, or system that will give you forex trading profits 100% of the time. In fact, a consistently profitable trader will be more likely to tell you that losing is as much a part of trading as winning.

But as shady brokers love to inflate the idea of getting people to open forex accounts and hope for an eternal wellspring for humanity, there is no shortage of trading amateurs and pros alike who continue to believe in a one-pan plan for profitability.

Here are three reasons why you’ll have better luck being the first man (or woman) to reach the sun than discovering the “sure formula” for forex trading:

1. No one can be prepared for ALL the uncertainties of the market.
One of the advantages of trading forex is that the bajillion factors that move currencies make it difficult for any individual or group to influence price action over a long period of time.
Unfortunately, this also makes it more difficult for traders to predict future price action.

Unless you get a superpower that lets you know what previous central bankers and economic influencers would say; warn you about natural disasters and ensuing terrorist attacks, or prepare for similar circumstances, and you won’t find a definitive formula any time soon.

2. People drive markets.
At least for now. Although mechanical trading systems, in general, have gained popularity over the last few years, humans still control the ebb and flow of the forex market.

Reasons Why There Is No “Definite Formula” In Forex Trading

Human behavior is one of the reasons why we still see trading opportunities, where the price does not reflect its value based on available data and existing market themes.

The daily multiplied scenario will leave us with an unexpected mix of potential price reactions.

3. No strategy is profitable in ALL trading conditions.
Those who have spent some time with the markets know that, like human behavior, there are patterns that tend to repeat themselves on charts.

EUR/USD may react to Stochastic’s signals and trade in the 100-pip range for days. Likewise, AUD/JPY can be counted on to bounce lower from a retest of the 100 SMA.

But what if the pattern ends and the price switches to another pattern? Most trading systems only work well until the price shifts into another pattern. Constant shifts in trading conditions and the unpredictable timing of their occurrence make it difficult for traditional technical tools to be reliable all day every day.

It takes wisdom to spot changing patterns and to identify which strategies will yield profits.

Just because there are no indicators 100% doesn’t mean you can’t be profitable trading forex. There are those who can trade full time and even more who are part time traders and are satisfied with consistent profits.

The key is controlling your risk. Since you can’t get rid of them, the least you can do is fully understand how margin trading works and learn proper risk management.