Why Trade FX?
Yes you can make a lot of money trading FX ... but 90% of traders don't. Why?
1)- there is the need to LEARN. It is surprising the number of traders I have met who do not have any proper background in LEARNING how to trade ... that's the technical aspect.
2) then there are the Forex Bastards .. who have the skill, knowledge, money, position, authority and lack of ethics - competing against their naive inexperienced clients. Again it is surprising to hear from some traders that they did not know their broker was trading aainst them. And the traders were asking thier broker for assistance in the tug of war .. the specific broker was FXCM .. so what chances did these lambs have?
3) Most traders seem to treat Forex as a Game and Not a business. They get off on the analytics - spend oodles of time, and often money, searching for the holy grail - yet they don't bother to ensure their profits are insulated against the 30% draw down at the end of the year - if they have profits that is!
4) I am still trying to come to grips with the trader mentality - of taking money off the table during the trading day. If you have a business and plough back profits then your returns compound. Applied to FX trading: If you initially set a 10 pip stop and are prepared to risk that - then why not leave your profits in the business until your shop closes (when you turn out the lights and go home)? What I am getting at is - instead of taking profits at predetermined points just
raise your stops ...
AND, if you are in profit in a trade then use the increase in capital to acquire more positions - again protected by stops so that the initial starting capital is all that is ever at risk.oh:
Yes you can make a lot of money trading FX ... but 90% of traders don't. Why?
1)- there is the need to LEARN. It is surprising the number of traders I have met who do not have any proper background in LEARNING how to trade ... that's the technical aspect.
2) then there are the Forex Bastards .. who have the skill, knowledge, money, position, authority and lack of ethics - competing against their naive inexperienced clients. Again it is surprising to hear from some traders that they did not know their broker was trading aainst them. And the traders were asking thier broker for assistance in the tug of war .. the specific broker was FXCM .. so what chances did these lambs have?
3) Most traders seem to treat Forex as a Game and Not a business. They get off on the analytics - spend oodles of time, and often money, searching for the holy grail - yet they don't bother to ensure their profits are insulated against the 30% draw down at the end of the year - if they have profits that is!
4) I am still trying to come to grips with the trader mentality - of taking money off the table during the trading day. If you have a business and plough back profits then your returns compound. Applied to FX trading: If you initially set a 10 pip stop and are prepared to risk that - then why not leave your profits in the business until your shop closes (when you turn out the lights and go home)? What I am getting at is - instead of taking profits at predetermined points just
raise your stops ... AND, if you are in profit in a trade then use the increase in capital to acquire more positions - again protected by stops so that the initial starting capital is all that is ever at risk.
oh:
