a conversation I had with a gentleman has led me to write this article, in fact. When we talk about what I do and what I teach, he revealed to me that he also like to speculate in the foreign exchange markets from time to time. How the chat was he reveals that he actually was the trade of the FX market for about five years. He was very open with me and we have talked about how he had made some good money, but in the end he was still in the negative. Ask him how he felt he replied that he was close to give up because he felt that all financial markets are forged and manipulated. He repeated that quote,
"the big guys are all behind you." My answer was to ask him why he is not only stop if he felt that. , he replied that he just needed to find the great mystery which everything, and perhaps I was the guy to help him. In recognition of his pain, I felt it was time to show him the great mystery in the markets. He held his breath in the expectancy.
"The great mystery is that there really is no secret," I said to him.
You earn money and the money is lost by each individual person and the institution, speculated. We all win and we all lose, but what really separates the profitable from the unprofitable is how you win and how you lose.
Lose very small and large profits and you do not need to quite often. Nobody gets it right all the time and if they did, the markets would cease to exist because it is no longer as a zero-sum game, after all there must be a winner for all losers, right? All this seemed sensible to him but he asked me what he was missing because the idea that the markets were manipulated on a daily basis was shadowed him and he could not be removed.
"What the banks know that I am not?" he asked me.
My answer was simply in nature, as I explained to him how likely you have access to the resources that the public will never be able to see or bars, but even after all that you still cannot guarantee the markets work in their favor. No one knows what will happen next after all. I explained to him that one of the things you like to do is get the best price you can, through the purchase of as low as possible and sell as high as possible in order to minimise risks and maximize your reward. This is how money is best in a sense. The key is to wait until the price comes to you and be prepared to pull the trigger when the opportunity presents itself. This is the concept that we teach our students in online trading Academy. If you spot the tracks of the institutions on a course-chart and see where you buy and sell,
there is no reason why you do not try to buy and sell at the same time as you, is it?
His next question was obvious:
"Can I learn to do the same?"
In my humble opinion, everyone can learn to trade and are consistently, but only if you learn how to use the model of the successful, you avoid the error that novice traders make and are prepared according to the rules of the trade without your emotions better of you. If you want the secret to trade then here it is:, you must accept the losses small, wins major and focus on risk management in the first place. Then patient enough to wait for the opportunity to buy and sell if your premiums are high and the risks are small, at the institutional level of supply and demand. You have wins and you will have losses. Do not make large quantity of either way and do not waste your time to lose. This is a safe way to lose your flow. Finally your set ups, if they are to you and let your plan to do the job without getting in the way. Pretty simple secret is not really?
According to this explanation to my new friend we saw almost easier and some real education on the foreign exchange market to finally learn the great mystery was not so large, after all. I hope you found my great revelation also helpful. Be safe and stick to the plan.
source:
fxstreet.com
