THE GREAT COUNTDOWN BEGINS : 12 LIVE TRADES WITH 11 WINS:
ADVANCE FOREX EDUCATION: PART TEN:
KNOWLEDGE IS MORE IMPORTANT THAN RISK MANAGEMENT:
Why do forex brokers and traders alike lay too much emphasis on learning about risk management and how to apply it to your forex trading techniques? No matter how good you are in risk management, in trading forex, it will not make you a professional trader. In fact, it has nothing to add as value to your trading. At best, it could only delay the rate at which your account will be wiped out. I have never laid too much emphasis on risk management, because it is second to the last on my scale of preference.
The majority is on the side of risk management as always and I am quite glad that the majority is always wrong as far as forex trading is concerned. Why is everyone talking about risk management? Even the forex brokers that are interested in your money, talk of money management, why? They want you to feel they care about your welfare, so as to get your sympathy in opening a live account with them. None of them is concerned about how you trade, so long that you trade to lose. None of them can condemn the use of certain technical indicators, not to talk of the entire indicators. How can you believe the majority that is always wrong?
Who is talking about knowledge of trading in the forex markets? Nobody! The most important factor in forex trading, is knowledge. Those big traders who hear of, who trade huge volumes are not concerned about risk management. It is only in forex business, someone who trades just a lot size will claim to be a professional trader. What professional trading is that? If you have sufficient knowledge of forex trading and you are a professional, you cannot trade one standard lot.
Knowledge is power and knowledge of forex trading is the only weapon you need to succeed in forex trading, not any kind of risk management. It is a misplaced priority if you are too much concerned about managing risk, rather than managing your trades. Those forex brokers who have risk management as part of their education curriculum, should include a real knowledge-based part of education in their well thought out education series. During my five years of forex research, I looked for any forex broker that could teach me how to trade Central Bank Statements, Quantitative Easing QE, Interest Rates, GDP, and so on and so forth, all to no avail.
They are all teaching the same thing. Just visit their education sections, those that run education series, you will be surprised that it is basically the same thing all over the place, technical indicators
that cannot predict price action and has zero rate of determining market direction. How can you acquire the knowledge to trade forex by using a demo platform for a few days? It is on record that I used live accounts for my research work and at a stage, DUKASCOPY EU refused to accept further deposits from me, due to constant funding. In fact it was the last amount returned to me I used to fund my account with THINK FOREX who again returned the funds to me with the excuse that they do not accept accounts from Nigerians, the rule that was not stated on their website. Why did they wait to approve the account and accepted the bank wire transfer before the refund? May be, I should not have indicated my years of forex trading experience.
The real Gurus in forex trading, the Soros and co, do not lay emphasis on risk management. Nobody can trade millions of US dollars in one trade if risk management is the primary focus. It is the KNOWLEDGE to know what to expect and the rate of success of such a trade. I have learnt one good thing about forex, that is, I will never follow the majority, that is always wrong. If I am more concerned about risk management, it would be difficult for me to have a minimum order size of one million US Dollars, which is equivalent to 10 standard lots and a maximum of ten million US Dollars, which is equivalent to 100 standard lots. If I have 100% chance of a trade to work, do you expect me to trade one lot? Risk management jingles will only create fear in your mind and make you vulnerable to indicators that will not help your trading ability.To become a professional trader, please try to acquire KNOWLEDGE, KNOWLEDGE AND KNOWLEDGE.
***** The countless number of NO TRADES are enough to protect our accounts *****
Be a successful forex trader by avoiding as many bad trades as possible.
STOP price watching and START trading.
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