This article aims to uncover the many myths that exist about trading the forex market and all the promises and lies that exist.The main target is to be realistic,honest, and down to earth because marketing is a very good friend but can also be a terrible enemy.
So we start with the synopsis of what is truth and waht is not and waht is the main enigma to be solved.Here we go :Truths :The forex market is the largest and the most liquid financial market at this moment and probably will continue to be as daily transactions are far beyond the trasactions made by the major US stock amrkets.There are no commissions in forex market.Truth and false the same time.There are not but it is hidden with the spread of 2-3 pips in most brokers.The brokers win from the pip spread so the difference is their commission.There is a lot of potential in terms of huge profits as there is a great leverage in most cases over 100 times.Most technical analysis of stocks,commodities etc apply to the forex market so if you know about it you can trade with more confidence the forex market.The forex market trends well so if you follow the trend and do not fight it the chances are that you will make money.True but also requires further explanation.This is next.
Ok.So now lets refer to all the lies,promises and marketing promotion ideas.It is easy to make a fortune in the forex market very quick and easy.That is why most people fail and lose their accounts completely in a very short time.Remember what I said about the leverage earlier?With up to 100 times it is great when you are right and awful when you are wrong.Most brokers entice people to open a small account with 200-300 USD just to trade their platform live.Very soon this money is vanished and you are left wondering what happened.Some claim that they make extraordinary profits evry month.It is possible but in most cases is not,it is just a bait.The worst of all is when they promise that you can learn trading in a very short time and open a new account to trade just o lose the whole amount very very soon.And by the way today as it is the first friday of the month is is the best day for brokers and the worst day for traders as there is the release of Non Farm Payrolls.For brokers it is a paradise as the earn from your trades in a very unpredictable way on this day.For traders it is a nightmare as they could win big or lose a lot within seconds.It is just not worth trading this day.
So to recap.The forex amrket is the best market in terms of market efficiency,depth and is definetely worth taking a look if it is only ok with your level of trading experience,risk tolerance and investment horizon.It requires a lot of research and paper trading first and is a market that you can win a lot or lose evrything within days.So do a lot of extensive home work.Start with a business paln and first with the answer to the question why do I want to get involved with this market?Am I sure to make it?Or is it best to spend my money elsewhere?At least I will enjoy some shopping etc.
Successful trading in all markets requires a lot of hard work.Nothing comes easily.When it comes to forex trading definetely it is not easy to make a fortune as promised.It is not impossible neither but it will not happen in a few days and if you do not apply from the beginning very strict money management rules.And above all be realistic.Do not spend your money away particularly on a day such today with the NFP coming out.Invest in knowledge,experience,self-control,desire and motivation to succeed and be realistic.Marketing is a great tool is used properly.
Psychology!How much really is important for trading?With one word : very!Not only it affects all our decisions and mood but it could lead us to extreme situations.The reason I am writing this article today is because it is my nominal celebration and one of great celebrations for Christians who are Orthodox like me.So as I went early in the morning to the church a lady who knows me as she was a long time ago one of my family tenants gave me unexpectadly a rose!A move so sincere and kind that surely made my day a whole lot happier!Will I trade today?Probably not because I cannot get concentrated due to phone calls.But do I feel inside me ready from all aspects to trade?Did I say all aspects?What are those?At least the most important ones.Lets make a list :1.I do not feel sad,upset,angry,furious,anxious,dissapointed with any issue of my life.2.I do not have to rush anything because I have a stict plan and I follow it so if no trade comes up no trade.3.I am concerned with a topic that could cause me either overjoy or instantly a hunch and will make a wrong trade,a silly one.4.I do not feel pain or are sick from whatever reason5.I do not have to prove anything!Not to myself not to my family,friends.Trading is not about self-esteem or pride,it is about making sound decisions that have great probabilities of making money.6.I have a written goal to accomplish,a small or large payment to make and expenses that require immediate cash.I feel like being haunted by my potential debt and need to repay it as soon as possible.7.My mind is not focused lately.I deal with a lot of things and have many priorities which cause me to be nervous and have plenty of stress.The list is endless.But our life unfortunately and time is limited.And precious.We all need a balanced life.The key to success is to try to be happy and live each day and moment.If we are happy we can accomplish a plethora of things.At the end it is all about our emotions.Remember the old song " Don't worry,be happy "?Sure hapiness is a powerful thing.And a great igredient to our balanced life.So if we are to trade we must feel confindent that we are in a mood to do so.If not we would better stay out of the markets as long as it takes.Patience is a virtue.I wish I had this German car that has a flower vase so each day I could put a different flower to make my day more beautiful and happy.Small things that we often neglect but are precious.Have the nice state of mind and soul and with the appropriate psychology it could do wonders for your trading results.Now,tomorrow,forever.
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Indy, or Indian Jones was one of my favorite heroes.Remember the movie about the holly grail and the scene where he has to choose between the holly grail and his life?And although it seemed that he lost from his touch the holly grail he gained his life!What is more important than survival first?Investments are no different than the eternal search for the holly grail!If someone finds the system that is 100% foolproof then here we found within seconds the next billionaire at the cover of all major economic magazines!Stop for a moment!Look around you!Is there a chance for someone to discover the one system that beats everything else all the time and make someone extremely rich?And if someone becomes so much rich why would he or she want to share the secret with others?Why?After all if more people learn about this idea it will eventually be useless as some will try very early to get a spot and the effectiveness will go from 100% towads zero as fast as a supercar accelerates from 0-100 mph!So what is the point?Come on give us a synopsis!Some systems and trading ideas are better than others indeed.But no one is the best!Investing is a very fascinating thing!For start there are a lot of options from the traditional stocks to more risky ones such as options and also other altenative forms such as real estate or hedge funds.Have you ever thought that since the idea of the holly grail is that it is unique that could it be possible that such a system if it existed it would be impossible to fit for all occassions?Investing in stocks is much more different than investing ir real estate or precious metals.But the marketing which is something very powerful these days wants us to believe that there are gurus everywhre fallen from the sky as angels!Ok so Dear God,if not the holly grail please pass me the best guru to make me rich!Silence again.Why?Investing builds on some major steps.Education,training,experience,solid risk management,control of emotions,balanced life and motivation.Yes motivation and action.Being an Economist I discovered very soon the idea and passion must say of learning how to invest properly and hopefully make it a career.But what someone needs is also passion.It is no fun watching the ticks of stocks movements or forex quotes.But if someone tries to make money out of it there is a cost.And the best way to pay this cost is to be a pioneer.Experiment with what you know or do not know about how the markets work.Put the odds in your favor making your analysis.You do not need to buy each book claiming that it has the one system that will make you rich or subscribe to a service or newsletter paying thousands of dollars per year.Be open-minded.Why pay a lot of money when the real cost could be much less?Is it impressive to cost you a few hundreds or thousands of dollars for their access to the holly grail that does not exist?Why to share it with you and split the profits?On the other hand paying for research and guidance at a reasonable price is defintely not a bad idea if you trust the author and offers extreme good customer service.But once you learn how to invest even with the most basic way why would you need a mentor anymore?Have you ever wondered that if you win and make profit the key to success is consistency?Think of it.If you only could make lets say 5% each month and compound this amount each month then if you can do this for 10 years each month an initial amount of 10,000 will reach the amount of 348 times higher that is 3,5 million dollars.And if that investment is in stocks and add some quality meaning dividends earned then it could be much more.Ok 5% each month each month for 10 years may seem irrational to you but my point is to use it as an example.Change the numbers and inputs.Do your own homework and research.Diversify!Apply very good risk-management criteria.Have a passion for it.And a dream and a goal.My goal is to learn as much as possible about the financial markets and be a good trader.I may not become a top one but at leat this is my holly grail : Consistency and Compounding.Keep it simple.All the best to your efforts and trading results.
Stavros Georgiadis
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