Forex – Foreplay for real trading?
I can almost feel the twitch and the tip-tap of keys on your laptop at that title; ready to damn and drown the writer of such an outrageous suggestion with a flood of vitreous comments.
Before you damn this messenger to the financial market’s version of hell, perhaps read a few more lines to let me expand.
Here is the reality…
The joys of very low investment, no gapping, 24-hour market are being peddled by those with money to make from those who have money to give on the ‘let’s-get-rich-quick’ circuit and can be found in every nook and cranny of the trading web…and it’s working!
At every corner of the globe, wannabe millionaires-in-the-making are jumping in like proverbial lemmings to have their piece of the 4 trillion dollar pie. Invariably, they end up donating big chunks of cash to the market and lining the pockets of the ever-increasing number of brokers that pop-up more frequently than re-runs of Law and Order.
Immediately, they have bragging rights down the pub about how THEY ARE a Forex trader and, furthermore, they’ve purchased a whizz-bang education course that shows them − step-by-step − how to make their fortune (they’ve watched the first two videos of 20).
To add to their exciting new toy, they’ve access to this colour-rich charting software where you can have a mosaic of lines and circles with six different ways to tell you exactly the same piece of information that happened historically.
However, it’s tragic that there’s no real understanding of what the software is actually showing and it has been set on the fastest timeframe possible for no other reason than it seems to be exciting! The lack of will to invest some time in properly learning the system appears to be omissions of capital-destroying magnitude that escapes them.
But it’s all OK because we’re told to invest with money we can afford to lose…one of the major Jackass theories of investing! Sound familiar?
The survivors of first base!
For the 10% that remain with a shred of capital intact after the first few weeks (and I may be generous with that statement), there is a growing realization that there may be more to this trading thing than simply a few lines on an entry chart.
So, what’s the next move? “I know…let’s join a forum!” There you will meet others of like mind and you can see what they are doing. The fact that the majority of forums are a vehicle through which unsuccessful traders polish their egos in public, gaining significance from the trades they choose to publish that will increase their significance level (and, surprisingly, NEVER discuss anything that resembles a loss) is unlikely to serve. So, no difference in the results you are getting, BUT NOW you too are one of the gang! You are a TRADER! Sound familiar?
So you got to second base?
For the half of those that survive the next few weeks, maybe a ‘light bulb’ moment or two begins to click on.
The realization that things like trading plans − including some real attention to exit rather than entry − and perhaps even some journaling might be a good idea.
Maybe even your results are not necessarily the market’s fault (or the plethora of other things that people blame for poor results) at least in initial thought.
And yet, in spite of these theoretical, personal light bulb moments, in practice there is NOT a trading plan written, nor any proper evaluation (as you can’t without a formal system to test against) and others still get the blame when things go against you. Sound familiar?
Hmmm…maybe if I want the full experience there IS something more!
For the half of those previous groups who are still in the fortunate position (for that’s what it is without all of the things in the previous paragraph) to still be in the market, maybe − just maybe − some work on developing systems occurs; some proper risk management is initiated; then full evaluation starts to happen with an acknowledgement (and related actions) on starting to work on yourself as the major determinant in your trading success. Sound familiar? I hope so!
And YES! There are other instruments out there too you can trade, for which the lessons you have learned are equally as valid and perhaps (or not) more suitable to your particular trading style.
I sincerely have every respect for anyone who steps up and looks at trading as another potential part of their own wealth creation. But it will only EVER be so if any of the ‘sound familiars’ above are dealt with now. The alternative? Prepare yourself for tradus interruptus, destroying the potential to move beyond foreplay to a satisfying and long lasting relationship with the financial markets.
Finally, assuming you have already moved beyond and into the “YES! there is something more category”, there is a 10 day video series for which we are going to give you FREE access..it is not vehicle specific ie.e. what ever you trade it IS relevant, and DOES have the potential to increase your results exponentially…if you follow through on the content of course. The information is ready for you to look at http://hawkeyeoptions.com/10day