Let me explain to you once and for all
how to lose your money in the forex market.
It still amazes me every time I search "forex trading" or "forex training" to see all the new forex trading "experts" out there. Another day, another expert, all vying to reach the top of the heap. And each one has got ANOTHER easy money-making forex trading system.
Doesn't it irritate you that once you probe a little deeper the "experts", "trainers" and "course providers" are mostly failed traders turned "mentors", or Internet marketers? Aren't you frustrated by the fact that you only find copies of web pages you have seen many times before? Rehashed in a new form, but with the same old stories.
Ring a bell?: "only ten pips a trade, 4 times a day and you are financially free"; "commission free trading"; "the banks are making billions in forex, why not you?"; "I'll show you how to make 200% in the time it takes a Ferrari to go from 0 -100"; "rake in the profits with leverage of 200:1"; "make money no matter which way the market goes"; "start with $250 in a mini account and turn it into millions " Lies, every one of them.
"If you tell lies about a product you will be found out – either by the government, which will prosecute you, or by the consumer, who will punish you by not buying your product a second time " is great advice given by the advertising guru David Ogilvy.
I have summarised only a few of the great forex lies above, but I have not yet told you the #1 lie that causes so many potentially successful forex traders to get lost in lion country even before they push the button to do the first trade. (By the way, if you didn't already know it let me be the first to tell you: nothing worth your time is easy or free. There are no free lunches. Let me repeat that: NOTHING IN LIFE THAT IS WORTHY OF YOUR ATTENTION, TIME AND ENERGY is free or easy!)
One of the problems that many people have in the forex (and other) markets is their wanting to buy, ready-made and off the shelf, a turnkey solution. That is, they want to buy someone else's system and just implement it and make money without thinking too hard. This attitude is all wrong. If it were that easy no one would work and everyone would trade. But these nicely packaged solutions, usually in the form of e-books, are real money spinners. That is why they will be pumped out, year after year. Different, format, different cover, same message. "It's easy, just buy me, I'll show you the way."
Successful traders develop their own system.
The best marketing wizards in the forex trading industry however are the market makers themselves, the forex brokers. With all the cash they make from the losers who fall victim to their advertising of tight spreads (as opposed to futures), no commissions (most losers in the stock market believes the commissions are killing them) and low margins (flip side of high leverage) and recently free training, free news, free analysis, they can afford to appear on every imaginable website with their banners, Google adwords, pop-ups and other advertisements.
Recently I had a discussion with a VP of one of the more prominent forex brokers about marketing and how they have to compete with the rest. Very casually he mentioned that really, this business was all about marketing (and that it was a very good business to be in!)
If you really want a surefire way to
lose your money in the forex market, allow
yourself to fall prey to a forex marketing wizard!
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A PERSPECTIVE here ... a PERSPECTIVE there ... and soon YOU will be making REAL money!
Let me explain to you
Since it is lion country out there the first perspective that you must have regarding trading is where you slot into the food chain - where do you fit into the money chain as a retail trader? You have to understand your business (turning a profit) in the context of the business of the others in this money chain. They all feed off the forex market and its spin offs and so the outsider, you, often unwittinly find yourself last in the queue. There is an excellent book "Where are the Customers' Yachts - Or a Good hard look at Wall Street which takes a look at this phenomenon. You are amongst professionals: professional marketers, professional businessmen, professional market makers, professional dealers, professional analysts and advisors...
If you want to make money in the business of online forex trading you better have a well thought out business strategy and approach. Don't make that most common mistake and think this is all about finding a system to enter and exit trades. You will lose your shirt.