How to trade profitably in the long run?

Trading profitably in the long run requires a combination of knowledge, skill, discipline, and patience. Here are some key principles to help you trade profitably over time:

  1. Education and Research: Invest time in learning about the financial markets, trading strategies, technical analysis, and fundamental analysis. Understanding the factors that influence asset prices will help you make informed trading decisions.

  2. Develop a Trading Plan: Define your trading goals, risk tolerance, and preferred trading style. Create a well-thought-out trading plan that outlines your entry and exit strategies, position sizing rules, risk management techniques, and criteria for selecting trades.

  3. Risk Management: Preserve your capital by managing risk effectively. Never risk more than a small percentage of your trading capital on any single trade. Use stop-loss orders to limit potential losses and implement risk-reward ratios to ensure that potential profits outweigh potential losses.

  4. Stick to Your Plan: Discipline is crucial for successful trading. Stick to your trading plan and avoid emotional decision-making. Don’t let fear or greed influence your trading decisions. Stay consistent with your strategy even during periods of market volatility.

  5. Diversification: Spread your risk by diversifying your trading portfolio across different asset classes, industries, or trading strategies. Diversification can help mitigate the impact of adverse events on your overall portfolio performance.

  6. Continuous Learning and Adaptation: Stay updated on market developments, economic indicators, and geopolitical events that could impact asset prices. Adapt your trading strategies as market conditions change and learn from both your successes and failures.

  7. Keep Trading Costs Low: Minimize trading costs such as commissions, spreads, and fees, as they can eat into your profits over time. Choose a broker with competitive pricing and consider the cost-effectiveness of different trading instruments.

  8. Manage Emotions: Trading can be emotionally challenging, especially during periods of market turbulence. Learn to control your emotions and avoid making impulsive decisions based on fear or greed. Practice mindfulness techniques or consider keeping a trading journal to reflect on your emotions and behaviors.

  9. Long-Term Perspective: Focus on long-term success rather than short-term gains. Avoid chasing quick profits or trying to time the market. Instead, aim to build wealth steadily over time through consistent and disciplined trading.

  10. Seek Professional Advice: Consider seeking advice from experienced traders or financial advisors. They can provide valuable insights, mentorship, and guidance to help improve your trading skills and achieve your financial goals.

Remember that trading involves risk, and there are no guarantees of success. Be prepared to face setbacks and losses along the way, but with proper education, discipline, and perseverance, you can increase your chances of trading profitably in the long run.


I think the most important rule for me is your #4.

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One of mine is don’t trade currencies as a growth mechanism. I see currencies as zero sum in the end. So I believe it is much more difficult to remain profitable over decades compared to purchasing companies or bonds.

just my opinion

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Diversification: Incorporating currencies diversifies your portfolio, reducing risk and potentially enhancing returns, especially during market downturns.

Profit Opportunities: Skilled traders can capitalize on short-term fluctuations in currency markets for potential profits.

Liquidity and Accessibility: Currency markets are highly liquid and accessible, providing ample opportunities for investors to enter and exit positions.

By considering these points, integrating currencies into your investment strategy can enhance portfolio resilience and potentially improve long-term returns.

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I see currency trading as insurance. It’s a way to protect yourself but not a way to make a profit on average in the long run. I think the lack of long term (5, 8, 10 years plus) successful strategies on the forex leaderboard is some evidence of my point.


Totally agree. Currencies are great hedges for a portfolio because they generally mean revert over the long term, and therefore cost you very little. But if I am trading/investing in something I want it to have a natural upward bias.


Stocks, pretty much.

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The sample size at Collective2 is very small, particularly for currency traders, so I wouldn’t make any long term sweeping generalizations regarding the leaderboards. Among many other possible explanations, it could be that currency trading can’t ultimately be successful (which is highly unlikely) or it could be that there just aren’t many successful (forex) traders on collective2 (at least yet).

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There are many successful FX strategies beyond C2 :slight_smile:

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It’s important to approach conclusions about the success or failure of currency trading on platforms like C2 with caution due to several factors:

  1. Sample Size: As you mentioned, the sample size of successful currency traders on platforms like C2 may be small. This limited dataset can skew perceptions and prevent accurate generalizations about the overall success rates of currency trading.

  2. Platform Specifics: The dynamics of trading platforms can influence the types of traders who participate and the strategies they employ. C2 may attract a certain demographic of traders or favor specific trading styles, which may not be representative of the broader currency trading community.

  3. Market Conditions: Currency markets are highly volatile and subject to various external factors such as economic indicators, geopolitical events, and central bank policies. These factors can significantly impact trading outcomes and may not be fully reflected in the performance of traders on a specific platform.

  4. Skill vs. Chance: It’s important to distinguish between skilled trading strategies and random chance. A lack of successful forex traders on C2 could be due to chance rather than an inherent inability to profit from currency trading.

  5. Time Horizon: Long-term success in currency trading may require a different evaluation period than what is available on platforms like C2. Trends and patterns in currency markets may unfold over longer time frames, making it difficult to assess success based solely on short-term performance metrics.

In conclusion, while platforms like C2 can provide valuable insights into trading strategies and performance, it’s essential to interpret the data cautiously and avoid making broad generalizations about the viability of currency trading based solely on limited sample sizes or platform-specific data.


I will just say the primary reason I believe these things isn’t because of what I have seen on C2. Even though I have seen many many forex systems come and go. Likewise just because their are successful forex trades doesn’t mean it is something I think people should attempt. I know of people that have become rich from gambling at casinos or lotteries. That doesn’t mean they are good ways to be profitable in the long run. We know that because we know the math of gambling. I believe that the math of forex shows it is a zero sum. That’s the way I see it. I am sure I am wrong to an extent.

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If I am understanding you correctly, you are relateting Forex to gambling. In a way you are correct because currencies go up and down but over the long term they do not go to far either way. In fact, all commodities are like this.

Stocks, if you get the right ones, only go one direction over time. Unless, of course, the company goes under.

That’s a valid perspective. Success in forex, stock, CFD… trading can be elusive and risky for many individuals, requiring a deep understanding of the market, risk management, and disciplined trading strategies. It’s not something everyone is suited for, and the potential for losses can be significant. It’s essential for individuals to thoroughly educate themselves and consider their risk tolerance before attempting forex, stock, CFD… trading.

That’s why Investors need C2 :slightly_smiling_face:


There are indeed differences between gambling at casinos/lotteries and forex trading. While both involve financial risk, they operate on different principles.

Forex trading is based on the buying and selling of currencies with the aim of profiting from fluctuations in exchange rates. It involves analysis, strategy, and an understanding of economic factors influencing currency values.

Gambling at casinos or participating in lotteries relies largely on chance, with outcomes determined by random events such as dice rolls, card draws, or lottery number selections.

Despite the differences, the comparison is often drawn because both activities involve financial risk and the potential for gains or losses. However, forex trading typically offers more opportunities for informed decision-making based on analysis and market understanding, whereas gambling outcomes are generally more reliant on luck.


Traders can lose money for various reasons, including:

  1. Lack of education and experience: Trading requires knowledge and skill. Novice traders often lose money due to a lack of understanding of market dynamics, trading strategies, risk management, and other important factors.

  2. Emotional trading: Emotional factors such as fear, greed, and impatience can lead traders to make irrational decisions. Emotionally driven trades often result in losses because they’re based on impulse rather than sound analysis.

  3. Poor risk management: Failing to manage risk effectively is a common reason for losses. Traders who risk too much on a single trade or fail to set stop-loss orders can suffer significant losses if the market moves against them.

  4. Overtrading: Trading too frequently or trading on too many instruments can lead to losses due to increased transaction costs and lack of focus. Overtrading often occurs when traders feel the need to be constantly active in the market.

  5. Lack of a trading plan: Trading without a well-defined plan can be detrimental. A trading plan outlines entry and exit criteria, risk management strategies, and other important parameters. Without a plan, traders may make impulsive decisions that result in losses.

  6. Market volatility: Financial markets can be highly volatile, and unexpected events or sudden price movements can lead to losses for traders, even if they have a solid trading strategy in place.

  7. Leverage: While leverage can amplify profits, it can also magnify losses. Traders who use excessive leverage without proper risk management can quickly wipe out their trading accounts if the market moves against them.

  8. Lack of discipline: Discipline is crucial for successful trading. Traders who deviate from their trading plan, ignore risk management rules, or let emotions dictate their decisions are more likely to experience losses.

Overall, successful trading requires a combination of knowledge, skill, discipline, and emotional control. Traders who consistently adhere to their trading plan, manage risk effectively, and continuously educate themselves are more likely to achieve long-term profitability.

@SwingTrader, why do these posts of yours all read like they were written by a bot? Are you real, or perhaps Matthew created you as a bot to post these incredibly precise listicles about trading to help everyone get better at trading?? I suspect it’s just help from Chat GPT or one of the other gen ai systems, which is fine but a bit repetitive. I tried taking some of your sentences and putting them into Google and I can find similar sentences and paragraphs and listicles that feel bot-written on other sites, but not exact matches… which makes me suspect you either ARE an ai bot, or you get help from one. I find this style of advice giving tedious after a few posts, but they do contain useful reminders, I suppose. I’m just curious… which AI do you find the most helpful?

It doesn’t matter who I am, what matters is what you or others can learn and receive useful information from reading this article.

Focusing on usefulness and learning is key. Whether you’re looking for information, advice, or just want to expand your knowledge, the goal is to provide valuable insights that can benefit you and others. If there’s anything specific you’d like to learn about or discuss, please let me know and I’ll do my best to provide helpful information!

lol, ok, as you wish. You’re right, it doesn’t really matter, just curious because the listicle style is pure pulp drawn from encyclopedic study of trading articles, and is devoid of personality or personal successes/failures. Relevant examples of real trading wins and losses make a point with trading folk more than these. Perhaps these posts are more helpful to the Investors here to get a handle on what the Trade Leaders do and how they think… I’ve been reading them as a Trade Leader and didn’t get that much new from them. I can respect that your posts may be quite useful to others, and I respect your polite request for me to bug off about it :-). Best wishes.

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As a trade leader, it’s understandable that you might not find these insights as novel, since they align closely with your own experiences and practices. If you have any specific suggestions for what could be more helpful or informative for trade leaders like yourself, feel free to share!

Managing drawdowns in Forex trading is crucial for long-term success and preserving capital. Here are some strategies to help you manage drawdowns effectively:

  1. Risk Management: Implement a sound risk management strategy. This involves determining the maximum percentage of your trading capital you are willing to risk on any single trade. A common rule of thumb is to risk no more than 1-2% of your capital per trade.

  2. Use Stop Loss Orders: Always use stop-loss orders to limit your losses on each trade. Set your stop-loss orders at a level where you are comfortable taking the loss if the trade goes against you. This helps prevent small losses from turning into large ones.

  3. Diversify Your Trades: Avoid putting all your capital into one trade or currency pair. Diversify your trades across multiple currency pairs to spread your risk.

  4. Position Sizing: Adjust your position sizes according to the volatility of each currency pair and your risk tolerance. Trade smaller positions during periods of higher volatility to reduce the impact of drawdowns.

  5. Monitor Market Correlations: Be aware of correlations between currency pairs and avoid taking correlated trades simultaneously. This helps reduce the risk of large drawdowns if multiple trades move against you at the same time.

  6. Use Leverage Wisely: Limit the amount of leverage you use in your trades. While leverage can amplify your profits, it also magnifies your losses, increasing the risk of significant drawdowns.

  7. Keep a Trading Journal: Keep a detailed trading journal to track your trades, including entry and exit points, reasons for entering the trade, and outcomes. Analyzing your past trades can help you identify patterns and mistakes, allowing you to adjust your strategy to minimize drawdowns.

  8. Stay Informed: Stay informed about market news and events that could impact currency prices. Economic indicators, central bank decisions, and geopolitical events can all influence currency markets and may lead to increased volatility and drawdowns.

  9. Emotional Control: Maintain emotional discipline and avoid making impulsive trading decisions based on fear or greed. Stick to your trading plan and strategy, even during periods of drawdown. Remember that drawdowns are a natural part of trading, and staying disciplined can help you weather temporary losses.

  10. Continuous Learning: Forex markets are dynamic and constantly evolving. Continuously educate yourself about trading strategies, risk management techniques, and market analysis to improve your trading skills and adapt to changing market conditions.

By implementing these strategies, you can effectively manage drawdowns in Forex trading and increase your chances of long-term success. Remember that consistency, discipline, and risk management are key to surviving and thriving in the Forex market.