Forex Trading Education - Avoiding Scams
by Harold Hsu
If you've spent some time searching the internet for Forex trading resources, chances are that you'll have come across at least one scam Forex trading product.
On the internet, there are countless scammers that try to tempt their 'victims' into buying their latest "trading system" that promises instant wealth. But as ridiculous as these claims may sound, there are people every day who unfortunately believe them.
Before you hand over your money to purchase another Forex trading product, try to avoid websites with these characteristics:
Tell-tale sign #1 - "Guaranteed Profits"
I'll say this now: any website that promises you guaranteed profits is outright lying.
You see, even if such a system did exist, chances are you wouldn't be able to afford it as a typical retail trader. There are many people more powerful and richer than you who would pay to keep this system to themselves. I'm sorry for being blunt, but it's the truth.
So please, if you're considering forking your money over for a 'guaranteed profit' trading system, close your web browser and as fast as you can!
Tell-tale sign #2 - Signal-Generating Software
This is another obvious scam. There's no way on earth that any financial market can be predicted using a formula... and yet that's exactly what these software 'developers' claim that their software can do!
Let me just put it this way: if the financial markets could really be predicted using some sort of formula, don't you think the big investment banks would be using at least a variant of it?
The simple fact that the large institutional traders still have a job - and have not lost it to computers - is because all attempts to use software to predict human behaviour in the market have failed to produce consistent profits.
The Best Way To Trade
Many people don't like to hear this, but unfortunately the best way to trade is to LEARN how to trade for yourself. Developing your own trading system is a tough, but highly rewarding experience.
Don't sell yourself short by spending any money on 'get-rich-easy' schemes... you'll be better off in the long run.
วันอังคารที่ 18 มีนาคม พ.ศ. 2551
วันจันทร์ที่ 17 มีนาคม พ.ศ. 2551
Why Forex Traders Fail
Why Forex Traders Fail
by Joerg Hausmann
Amazingly enough according to estimates, 90 percent of Forex traders lose money. Futures traders fare a little better, 70 to 80 percent are losing traders. Another fact is that the Forex traders lose their trading capital in record time, 6 months, compared to Futures traders at about 12 months. To put all this in perspective I will do a comparison with small business start-ups and how they cope with failure. Further I will also look at the reasons traders and businesses fail. For those of you that think this comparison is not relevant, think again. Why is Forex trading different from any other business? The motive is to make money, right? Otherwise, it would be no different from roulette or any other game that can be found in Las Vegas or Macau.
According to the article, Survival and Longevity in the Business Employment Dynamics Data, (Monthly Labor Review 2005) Amy Knaup shows that about 60 percent of business establishments that opened in second quarter of 1998 were still in existence 24 months later. In other words, only 40 percent of new businesses failed within 24 months, that is much better than any traders can show. So why is it that business and traders fail and are there any similarities. Let's have a look at another 2005 study Small businesses: Causes of bankruptcy by Don B. Bradley III and Chris Cowdery from the University of Central Arkansas. In this study, they authors elaborate that roughly 90 percent of the business failure is due to poor management caused by a lack of knowledge. So what kind of knowledge are business owners lacking? The areas where knowledge is lacking are many but the following are the most common:
1.Bad management practices
2.Poor choice of location
3.Failure to invest in new products and efficient technology
4.Lack of adequate financing.
In some ways Forex trading is more straight-forward than starting a business (no incorporation, no sales or marketing etc), but on the other hand it is also more complex and illogical since we are dealing with human consensus and expectations driving exchange rates up and down seemingly at random. Going through the above four reasons for business failure and translating it into the Forex trading equivalent we get:
1.Bad profit and risk management
2.Poor choice of Forex broker
3.Failure to invest in a proper trading and charting platform
4.Under-capitalized
But for a Forex trader it usually doesn't stop here. Most people signing up for a Forex broker account do so without much knowledge about the Forex market and the psychology involved. On my website I have created a free Forex trading course that addresses the deficiencies that lead to failure of Forex traders. In order to make it easier for traders to grasp the difficulties, I developed the Three Pillars to Profit:
-The Right Trading System, i.e a validated Trading System that produces consistent profits
-The Right Psychology, i.e a Psychology that supports your trading effort towards consistent profits
-The Right Experience, i.e an Experience that promotes confidence in your Trading System
This probably seems obvious but believe me, it isn't. Contrary to what all Forex Brokers want us to believe, Forex trading is not easy.
We have established that Forex traders and Business owners face pretty much the same problems, but why is it that Forex traders fail to such an astounding degree compared to business owners. The Three Pillars to Profit I think explains it all, because most traders that enter the Forex arena are severely lacking in all the three pillars. Would you start a Supermarket if you had only 1 or 2 weeks of experience as a Supermarket clerk? Would you start a business without having any idea about how to generate sales or market your products? If you answered "No" then you are smart, but this is exactly how many aspiring Forex traders approach their new venture. They don't have a clue of what they are doing.
by Joerg Hausmann
Amazingly enough according to estimates, 90 percent of Forex traders lose money. Futures traders fare a little better, 70 to 80 percent are losing traders. Another fact is that the Forex traders lose their trading capital in record time, 6 months, compared to Futures traders at about 12 months. To put all this in perspective I will do a comparison with small business start-ups and how they cope with failure. Further I will also look at the reasons traders and businesses fail. For those of you that think this comparison is not relevant, think again. Why is Forex trading different from any other business? The motive is to make money, right? Otherwise, it would be no different from roulette or any other game that can be found in Las Vegas or Macau.
According to the article, Survival and Longevity in the Business Employment Dynamics Data, (Monthly Labor Review 2005) Amy Knaup shows that about 60 percent of business establishments that opened in second quarter of 1998 were still in existence 24 months later. In other words, only 40 percent of new businesses failed within 24 months, that is much better than any traders can show. So why is it that business and traders fail and are there any similarities. Let's have a look at another 2005 study Small businesses: Causes of bankruptcy by Don B. Bradley III and Chris Cowdery from the University of Central Arkansas. In this study, they authors elaborate that roughly 90 percent of the business failure is due to poor management caused by a lack of knowledge. So what kind of knowledge are business owners lacking? The areas where knowledge is lacking are many but the following are the most common:
1.Bad management practices
2.Poor choice of location
3.Failure to invest in new products and efficient technology
4.Lack of adequate financing.
In some ways Forex trading is more straight-forward than starting a business (no incorporation, no sales or marketing etc), but on the other hand it is also more complex and illogical since we are dealing with human consensus and expectations driving exchange rates up and down seemingly at random. Going through the above four reasons for business failure and translating it into the Forex trading equivalent we get:
1.Bad profit and risk management
2.Poor choice of Forex broker
3.Failure to invest in a proper trading and charting platform
4.Under-capitalized
But for a Forex trader it usually doesn't stop here. Most people signing up for a Forex broker account do so without much knowledge about the Forex market and the psychology involved. On my website I have created a free Forex trading course that addresses the deficiencies that lead to failure of Forex traders. In order to make it easier for traders to grasp the difficulties, I developed the Three Pillars to Profit:
-The Right Trading System, i.e a validated Trading System that produces consistent profits
-The Right Psychology, i.e a Psychology that supports your trading effort towards consistent profits
-The Right Experience, i.e an Experience that promotes confidence in your Trading System
This probably seems obvious but believe me, it isn't. Contrary to what all Forex Brokers want us to believe, Forex trading is not easy.
We have established that Forex traders and Business owners face pretty much the same problems, but why is it that Forex traders fail to such an astounding degree compared to business owners. The Three Pillars to Profit I think explains it all, because most traders that enter the Forex arena are severely lacking in all the three pillars. Would you start a Supermarket if you had only 1 or 2 weeks of experience as a Supermarket clerk? Would you start a business without having any idea about how to generate sales or market your products? If you answered "No" then you are smart, but this is exactly how many aspiring Forex traders approach their new venture. They don't have a clue of what they are doing.
Why Forex Traders Fail
Why Forex Traders Fail
by Joerg Hausmann
Amazingly enough according to estimates, 90 percent of Forex traders lose money. Futures traders fare a little better, 70 to 80 percent are losing traders. Another fact is that the Forex traders lose their trading capital in record time, 6 months, compared to Futures traders at about 12 months. To put all this in perspective I will do a comparison with small business start-ups and how they cope with failure. Further I will also look at the reasons traders and businesses fail. For those of you that think this comparison is not relevant, think again. Why is Forex trading different from any other business? The motive is to make money, right? Otherwise, it would be no different from roulette or any other game that can be found in Las Vegas or Macau.
According to the article, “Survival and Longevity in the Business Employment Dynamics Data,†(Monthly Labor Review 2005) Amy Knaup shows that about 60 percent of business establishments that opened in second quarter of 1998 were still in existence 24 months later. In other words, only 40 percent of new businesses failed within 24 months, that is much better than any traders can show. So why is it that business and traders fail and are there any similarities. Let's have a look at another 2005 study “Small businesses: Causes of bankruptcy†by Don B. Bradley III and Chris Cowdery from the University of Central Arkansas. In this study, they authors elaborate that roughly 90 percent of the business failure is due to “poor management caused by a lack of knowledge.†So what kind of knowledge are business owners lacking? The areas where knowledge is lacking are many but the following are the most common:
1.Bad management practices
2.Poor choice of location
3.Failure to invest in new products and efficient technology
4.Lack of adequate financing.
In some ways Forex trading is more straight-forward than starting a business (no incorporation, no sales or marketing etc), but on the other hand it is also more complex and illogical since we are dealing with human consensus and expectations driving exchange rates up and down seemingly at random. Going through the above four reasons for business failure and translating it into the Forex trading equivalent we get:
1.Bad profit and risk management
2.Poor choice of Forex broker
3.Failure to invest in a proper trading and charting platform
4.Under-capitalized
But for a Forex trader it usually doesn't stop here. Most people signing up for a Forex broker account do so without much knowledge about the Forex market and the psychology involved. On my website I have created a free Forex trading course that addresses the deficiencies that lead to failure of Forex traders. In order to make it easier for traders to grasp the difficulties, I developed the “Three Pillars to Profitâ€:
-The Right Trading System, i.e a validated Trading System that produces consistent profits
-The Right Psychology, i.e a Psychology that supports your trading effort towards consistent profits
-The Right Experience, i.e an Experience that promotes confidence in your Trading System
This probably seems obvious but believe me, it isn't. Contrary to what all Forex Brokers want us to believe, Forex trading is not easy.
We have established that Forex traders and Business owners face pretty much the same problems, but why is it that Forex traders fail to such an astounding degree compared to business owners. The “Three Pillars to Profit†I think explains it all, because most traders that enter the Forex arena are severely lacking in all the three pillars. Would you start a Supermarket if you had only 1 or 2 weeks of experience as a Supermarket clerk? Would you start a business without having any idea about how to generate sales or market your products? If you answered "No" then you are smart, but this is exactly how many aspiring Forex traders approach their new venture. They don't have a clue of what they are doing.
by Joerg Hausmann
Amazingly enough according to estimates, 90 percent of Forex traders lose money. Futures traders fare a little better, 70 to 80 percent are losing traders. Another fact is that the Forex traders lose their trading capital in record time, 6 months, compared to Futures traders at about 12 months. To put all this in perspective I will do a comparison with small business start-ups and how they cope with failure. Further I will also look at the reasons traders and businesses fail. For those of you that think this comparison is not relevant, think again. Why is Forex trading different from any other business? The motive is to make money, right? Otherwise, it would be no different from roulette or any other game that can be found in Las Vegas or Macau.
According to the article, “Survival and Longevity in the Business Employment Dynamics Data,†(Monthly Labor Review 2005) Amy Knaup shows that about 60 percent of business establishments that opened in second quarter of 1998 were still in existence 24 months later. In other words, only 40 percent of new businesses failed within 24 months, that is much better than any traders can show. So why is it that business and traders fail and are there any similarities. Let's have a look at another 2005 study “Small businesses: Causes of bankruptcy†by Don B. Bradley III and Chris Cowdery from the University of Central Arkansas. In this study, they authors elaborate that roughly 90 percent of the business failure is due to “poor management caused by a lack of knowledge.†So what kind of knowledge are business owners lacking? The areas where knowledge is lacking are many but the following are the most common:
1.Bad management practices
2.Poor choice of location
3.Failure to invest in new products and efficient technology
4.Lack of adequate financing.
In some ways Forex trading is more straight-forward than starting a business (no incorporation, no sales or marketing etc), but on the other hand it is also more complex and illogical since we are dealing with human consensus and expectations driving exchange rates up and down seemingly at random. Going through the above four reasons for business failure and translating it into the Forex trading equivalent we get:
1.Bad profit and risk management
2.Poor choice of Forex broker
3.Failure to invest in a proper trading and charting platform
4.Under-capitalized
But for a Forex trader it usually doesn't stop here. Most people signing up for a Forex broker account do so without much knowledge about the Forex market and the psychology involved. On my website I have created a free Forex trading course that addresses the deficiencies that lead to failure of Forex traders. In order to make it easier for traders to grasp the difficulties, I developed the “Three Pillars to Profitâ€:
-The Right Trading System, i.e a validated Trading System that produces consistent profits
-The Right Psychology, i.e a Psychology that supports your trading effort towards consistent profits
-The Right Experience, i.e an Experience that promotes confidence in your Trading System
This probably seems obvious but believe me, it isn't. Contrary to what all Forex Brokers want us to believe, Forex trading is not easy.
We have established that Forex traders and Business owners face pretty much the same problems, but why is it that Forex traders fail to such an astounding degree compared to business owners. The “Three Pillars to Profit†I think explains it all, because most traders that enter the Forex arena are severely lacking in all the three pillars. Would you start a Supermarket if you had only 1 or 2 weeks of experience as a Supermarket clerk? Would you start a business without having any idea about how to generate sales or market your products? If you answered "No" then you are smart, but this is exactly how many aspiring Forex traders approach their new venture. They don't have a clue of what they are doing.
วันอาทิตย์ที่ 16 มีนาคม พ.ศ. 2551
Why You Should Trade Options
Why You Should Trade Options
by Simon Franco
Leverage Options are contracts that can be traded just like stocks. The reason you should trade options is because of the powerful leverage they offer. To fully understand the leverage we can look at an imaginary stock called XXX
This stock might be trading at a value of $40.00. To buy 100 of XXX it would cost a total of $4000, plus brokerage costs. If the stocks go up $5.00 then we have a profit of $500. So then we look at what options can do
The call option for XXX for the forward month would cost about $300, plus brokerage. Now, options give you the right to buy the stock, but you have no obligation to buy. So when the stock price goes up so does the option price. The option price will rise in accordance with the stock price. Each option has a variable rate by which it can rise, but "at the money" options will rise at the same rate of the stock. So the same $5.00 price rice is applied to the at the money call option. The Call option is now worth $8.00, and can be sold for $800.
So from the above example we see that the same profit can be realized without outlaying a greater amount of money. For the stock, the outlay was $4000, whereas with the options contract the outlay was $300. And then the profit was the same.
Protection
Options can give you protection for your stock. A put option is a contract that allows you to sell your stock at a pre-determined price, within a given time period. It gives you the right, but does not force you to sell the stock. Put options can be thought of as insurance. Insure your stock in the market. It really is a smart idea. It will cost you but then all insurance costs. It is good to have a piece of mind knowing that you stock cannot go below your options price. If you only have one reason to buy options, this should be it.
Stock Recovery
Options can be used to recover losses in the market. There are lots of strategies you can use with options and this strategy is called the stock recovery option strategy. I won't cover it here in detail, but I will tell you that by using this combinations of options, you can quickly recover any losses you have had in the price of your stock when the market goes bearish.
Extra Income There is a strategy to use with options over stocks that will produce you a regular income. The covered call strategy is used to get monthly income from stocks that you already own. Even if you don't own stocks, you can use this strategy with options to create a regular income. It is used by lots of people to supplement there existing income and can be a true wealth building tool.
Mix and Match Options, when used in conjunction with CFD's, stocks, futures, and forex give you a powerful way of creating income and capitol growth. You can mix and match these tools to get the best outcome for your trade. You must however, understand how each of these work to be able to fully utilize them.
Education in all of these areas is necessary before you begin trading. To ignore the rules and trade options or any of these tools will cost you a lot of money and wasted time.
by Simon Franco
Leverage Options are contracts that can be traded just like stocks. The reason you should trade options is because of the powerful leverage they offer. To fully understand the leverage we can look at an imaginary stock called XXX
This stock might be trading at a value of $40.00. To buy 100 of XXX it would cost a total of $4000, plus brokerage costs. If the stocks go up $5.00 then we have a profit of $500. So then we look at what options can do
The call option for XXX for the forward month would cost about $300, plus brokerage. Now, options give you the right to buy the stock, but you have no obligation to buy. So when the stock price goes up so does the option price. The option price will rise in accordance with the stock price. Each option has a variable rate by which it can rise, but "at the money" options will rise at the same rate of the stock. So the same $5.00 price rice is applied to the at the money call option. The Call option is now worth $8.00, and can be sold for $800.
So from the above example we see that the same profit can be realized without outlaying a greater amount of money. For the stock, the outlay was $4000, whereas with the options contract the outlay was $300. And then the profit was the same.
Protection
Options can give you protection for your stock. A put option is a contract that allows you to sell your stock at a pre-determined price, within a given time period. It gives you the right, but does not force you to sell the stock. Put options can be thought of as insurance. Insure your stock in the market. It really is a smart idea. It will cost you but then all insurance costs. It is good to have a piece of mind knowing that you stock cannot go below your options price. If you only have one reason to buy options, this should be it.
Stock Recovery
Options can be used to recover losses in the market. There are lots of strategies you can use with options and this strategy is called the stock recovery option strategy. I won't cover it here in detail, but I will tell you that by using this combinations of options, you can quickly recover any losses you have had in the price of your stock when the market goes bearish.
Extra Income There is a strategy to use with options over stocks that will produce you a regular income. The covered call strategy is used to get monthly income from stocks that you already own. Even if you don't own stocks, you can use this strategy with options to create a regular income. It is used by lots of people to supplement there existing income and can be a true wealth building tool.
Mix and Match Options, when used in conjunction with CFD's, stocks, futures, and forex give you a powerful way of creating income and capitol growth. You can mix and match these tools to get the best outcome for your trade. You must however, understand how each of these work to be able to fully utilize them.
Education in all of these areas is necessary before you begin trading. To ignore the rules and trade options or any of these tools will cost you a lot of money and wasted time.
The Forex Assassin
The Forex Assassin
by Mandy35
Feel like it's just too damn difficult to make money with Forex? Why sit all day and monitor the market? Why experience the stress that is normally involved in forex trading? You can skip all the hard work and trade hassle free with "The Forex Assassin! The Forex Assassin is the easiest way to make money with forex trading and bank thousands of dollars every single week and without ANY prior knowledge or experience of forex. It is a consistently PROFITABLE system whereby all you need to do is enter EXACT data into the formula that it will provide you with, then watch as this revolutionary new system spits out exactly when to open and close your trades. This system does it all for you without any further thought on your part. In short, it's an easy and simple process for you to carry out with little effort - leaving you to get on with your day and your life and still make make money trading forex!
The Forex Assassin involves No decision making, no learning curve and no mastering of your gut instinct involved. A Super Profitable, Step-by-Step System - designed for the guys who couldn't profit using the "old school" methods.
Are you prepared to abandon everything you thought you knew about this "trillion dollar playground and start with The Forex Assassin? You can use ForexAssassin if you thought about making a KILLING trading forex trading but don't know where to start, already purchased a forex system or system promising the world only to be baffled with useless terminology and charts (that work in hindsight but fail to work in real market conditions) and thought you couldn't make money with forex trading if you have a 9-to-5 and little capital. The Forex Assassin Formula is The Only System Designed for 9-to-5'ers - start with as little as $100 and set and forget (you work out your trades during the weekend). You can test the system without risking a cent - fully test the formula, risk-free for 8 weeks - see the profitability and ease of use for yourself. The Forex Assassin involves ZERO decision making required- it will tell you exactly when to enter and exit - no previous experience, expensive equipment or long hours needed. And it is easy, unique "price driven" system - absolutely no complicated indicators whatsoever, guaranteed!
So,If you want to put an end on the days of failure and painful stinging losses in Forex Trading, this is the perfect time to try a new system that actually work!
Discover The Forex Assassin Now!
You will not find a better and more profitable income opportunity in today's marketplace. Forex traders are generating incredible wealth day after day from the comfort of their home and you could be one of them. In fact there is $1.5 Trillion traded on forex each day. This revolutionary system will allow you a piece of that pie for one key reason - it doesn't waste time using unnecessary indicators. It uses the Forex Assassin revolutionary trading zones method.
The Forex Assassin system is 100% mechanical you don't have to think about what to do next. The system does it for you. It spits out the numbers for you to enter into your trading platform and that's it.This revolutionary new system is perfect for those entering the forex market for the first time and for those who have wasted their time with other forex day trading systems.
by Mandy35
Feel like it's just too damn difficult to make money with Forex? Why sit all day and monitor the market? Why experience the stress that is normally involved in forex trading? You can skip all the hard work and trade hassle free with "The Forex Assassin! The Forex Assassin is the easiest way to make money with forex trading and bank thousands of dollars every single week and without ANY prior knowledge or experience of forex. It is a consistently PROFITABLE system whereby all you need to do is enter EXACT data into the formula that it will provide you with, then watch as this revolutionary new system spits out exactly when to open and close your trades. This system does it all for you without any further thought on your part. In short, it's an easy and simple process for you to carry out with little effort - leaving you to get on with your day and your life and still make make money trading forex!
The Forex Assassin involves No decision making, no learning curve and no mastering of your gut instinct involved. A Super Profitable, Step-by-Step System - designed for the guys who couldn't profit using the "old school" methods.
Are you prepared to abandon everything you thought you knew about this "trillion dollar playground and start with The Forex Assassin? You can use ForexAssassin if you thought about making a KILLING trading forex trading but don't know where to start, already purchased a forex system or system promising the world only to be baffled with useless terminology and charts (that work in hindsight but fail to work in real market conditions) and thought you couldn't make money with forex trading if you have a 9-to-5 and little capital. The Forex Assassin Formula is The Only System Designed for 9-to-5'ers - start with as little as $100 and set and forget (you work out your trades during the weekend). You can test the system without risking a cent - fully test the formula, risk-free for 8 weeks - see the profitability and ease of use for yourself. The Forex Assassin involves ZERO decision making required- it will tell you exactly when to enter and exit - no previous experience, expensive equipment or long hours needed. And it is easy, unique "price driven" system - absolutely no complicated indicators whatsoever, guaranteed!
So,If you want to put an end on the days of failure and painful stinging losses in Forex Trading, this is the perfect time to try a new system that actually work!
Discover The Forex Assassin Now!
You will not find a better and more profitable income opportunity in today's marketplace. Forex traders are generating incredible wealth day after day from the comfort of their home and you could be one of them. In fact there is $1.5 Trillion traded on forex each day. This revolutionary system will allow you a piece of that pie for one key reason - it doesn't waste time using unnecessary indicators. It uses the Forex Assassin revolutionary trading zones method.
The Forex Assassin system is 100% mechanical you don't have to think about what to do next. The system does it for you. It spits out the numbers for you to enter into your trading platform and that's it.This revolutionary new system is perfect for those entering the forex market for the first time and for those who have wasted their time with other forex day trading systems.
วันเสาร์ที่ 15 มีนาคม พ.ศ. 2551
Forex Trader Trading - 1 Secret of profitable Forex trading
Forex Trader Trading - 1 Secret of profitable Forex trading
by Harold Hsu
It's no coincidence that more than 90% of retail Forex traders lose money in trading. If you've done a little research, you'll realize why this is the case. As a retail trader, the currency market is heavily geared to make you lose money.
And one of the main reasons why it's so easy to lose money is because of the proliferation of bad trading advice. There are volumes upon volumes of misleading 'tips' and 'strategies' splattered all over the internet, none of which are actually useful information at all. They are typically dispensed by people who are not actual traders, or traders who aren't really profitable in practice. Unfortunately, Many novice traders try to implement the 'strategies' given by these people, and ultimately wipe out their trading accounts.
But of course, there are indeed some useful tips and techniques that can be found online... you'll just have to be able to figure out which ones they are!
Just kidding... I'm going to share one of them with you today.
Understanding the risks of trading
So many people get obsessed with the idea of making money that they often forget to pay attention to how NOT to lose money in Forex trading. They jump into the market without first figuring out the inherent dangers, or how to avoid them.
The risks you face as a retail trader are 3-fold: market risk (other traders), counter-party risk (your broker), and self-risk (your psychology).
While many retail traders are well-acquainted with market risk and self-risk, they often neglect counter-party risk. While it is beyond the scope of this article to examine this issue in detail, it's important that you, as a retail trader understand the driving motivations of your broker.
What makes your broker money? Do they make money when you profit? Most of the time, the answer is no. In fact, most brokers make more money when you trade more. It doesn't matter if you win or lose; the more you trade, they more money they make (since they get their income from spreads).
Can you see how they don't actually have an incentive to help you make money? Instead, it would serve their purpose better if they could make you place MORE trades!
So don't fall into their trap. Make fewer trades with higher winning probabilities. It'll serve you better in the long run.
by Harold Hsu
It's no coincidence that more than 90% of retail Forex traders lose money in trading. If you've done a little research, you'll realize why this is the case. As a retail trader, the currency market is heavily geared to make you lose money.
And one of the main reasons why it's so easy to lose money is because of the proliferation of bad trading advice. There are volumes upon volumes of misleading 'tips' and 'strategies' splattered all over the internet, none of which are actually useful information at all. They are typically dispensed by people who are not actual traders, or traders who aren't really profitable in practice. Unfortunately, Many novice traders try to implement the 'strategies' given by these people, and ultimately wipe out their trading accounts.
But of course, there are indeed some useful tips and techniques that can be found online... you'll just have to be able to figure out which ones they are!
Just kidding... I'm going to share one of them with you today.
Understanding the risks of trading
So many people get obsessed with the idea of making money that they often forget to pay attention to how NOT to lose money in Forex trading. They jump into the market without first figuring out the inherent dangers, or how to avoid them.
The risks you face as a retail trader are 3-fold: market risk (other traders), counter-party risk (your broker), and self-risk (your psychology).
While many retail traders are well-acquainted with market risk and self-risk, they often neglect counter-party risk. While it is beyond the scope of this article to examine this issue in detail, it's important that you, as a retail trader understand the driving motivations of your broker.
What makes your broker money? Do they make money when you profit? Most of the time, the answer is no. In fact, most brokers make more money when you trade more. It doesn't matter if you win or lose; the more you trade, they more money they make (since they get their income from spreads).
Can you see how they don't actually have an incentive to help you make money? Instead, it would serve their purpose better if they could make you place MORE trades!
So don't fall into their trap. Make fewer trades with higher winning probabilities. It'll serve you better in the long run.
Forex Trading - 2 Weeks Education and These Novice Traders Made Millions
Forex Trading - 2 Weeks Education and These Novice Traders Made Millions!
by Monica Hendrix
How did a group of traders with no experience, learn to trade and end up making hundreds of millions of dollars. To find out we need to go back over half a century to one of the most famous trading experiments of all time and see what we can learn.
The Experiment.
Trading legend Richard Dennis had a theory that anyone could learn to trade if they had the right mindset and the right method so he set out to prove his point.
He nicknamed the group the turtles and they have gone down in trading history.
He took a group of people and the only thing they had in common was that they had never traded and had not one bit of trading experience.
The group was a mixed bunch - a female auditor, a boy who had just left school a couple of card players and a security guard to name just a few.
He then taught them in two weeks and gave them some trading money and accounts.
The result is history - $100 million dollars in the first four years and many of these traders went on to become legends.
What You Can Learn
Think about it for a moment - this group is no different to you!
So it means you have the potential to - sure, you may not become as rich as the turtles but the opportunity is there and that's an inspiration.
Secondly 95% of traders lose so what did this group do right?
The answer is they had a simple method and it was so simple anyone could learn it, but that's not the hard part of trading - executing your trading system with discipline is.
Dennis was well aware of this so he made sure the group knew exactly how and why it would work (it was essentially a breakout system) and made sure they had confidence in it.
Confidence is essential to execute a trading system with discipline and keep in mind, if you have no discipline to execute your method you don't have one!
Most traders lack discipline they don't have the confidence to follow a system because they follow others or they get the wrong system and believe the numerous trading myths that are circulated.
Trading success comes from within.
Trading success is down to you and that's what Dennis taught the turtles.
Once you accept this. its getting a system you have confidence in and can follow with discipline which is the key and not following a vendor with a useless system with a simulated track record!
There are no trading secrets - trading is down to you and the ability to control your emotions that was true 25 years ago and is still true today.
You Can Do It Too!
Trading isn't easy and you wouldn't expect it to be, with the rewards on offer but there is a huge difference between something being beyond you and being possible.
Sure, you will have to work at the basics and get the right education but isn't that a small price to pay, for the riches that successful trading can bring?
I hope the story of the turtles inspires you to trade, it inspired me and sure I haven't made as much money as them - but I have been successful and got a lot out in terms of rewards for the effort I have put in.
You can be a successful trader to just have desire and a willingness to learn and your all set.
by Monica Hendrix
How did a group of traders with no experience, learn to trade and end up making hundreds of millions of dollars. To find out we need to go back over half a century to one of the most famous trading experiments of all time and see what we can learn.
The Experiment.
Trading legend Richard Dennis had a theory that anyone could learn to trade if they had the right mindset and the right method so he set out to prove his point.
He nicknamed the group the turtles and they have gone down in trading history.
He took a group of people and the only thing they had in common was that they had never traded and had not one bit of trading experience.
The group was a mixed bunch - a female auditor, a boy who had just left school a couple of card players and a security guard to name just a few.
He then taught them in two weeks and gave them some trading money and accounts.
The result is history - $100 million dollars in the first four years and many of these traders went on to become legends.
What You Can Learn
Think about it for a moment - this group is no different to you!
So it means you have the potential to - sure, you may not become as rich as the turtles but the opportunity is there and that's an inspiration.
Secondly 95% of traders lose so what did this group do right?
The answer is they had a simple method and it was so simple anyone could learn it, but that's not the hard part of trading - executing your trading system with discipline is.
Dennis was well aware of this so he made sure the group knew exactly how and why it would work (it was essentially a breakout system) and made sure they had confidence in it.
Confidence is essential to execute a trading system with discipline and keep in mind, if you have no discipline to execute your method you don't have one!
Most traders lack discipline they don't have the confidence to follow a system because they follow others or they get the wrong system and believe the numerous trading myths that are circulated.
Trading success comes from within.
Trading success is down to you and that's what Dennis taught the turtles.
Once you accept this. its getting a system you have confidence in and can follow with discipline which is the key and not following a vendor with a useless system with a simulated track record!
There are no trading secrets - trading is down to you and the ability to control your emotions that was true 25 years ago and is still true today.
You Can Do It Too!
Trading isn't easy and you wouldn't expect it to be, with the rewards on offer but there is a huge difference between something being beyond you and being possible.
Sure, you will have to work at the basics and get the right education but isn't that a small price to pay, for the riches that successful trading can bring?
I hope the story of the turtles inspires you to trade, it inspired me and sure I haven't made as much money as them - but I have been successful and got a lot out in terms of rewards for the effort I have put in.
You can be a successful trader to just have desire and a willingness to learn and your all set.
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