Forex and Your Money

By: Greg Barnes

Why isn't everyone making millions with currency trading? After all it is easy, so the adverts say. Buy my Superman Trading System and you will make millions overnight. Hah!!!

An author of a very comprehensive and balanced book about the forex market commented that the first person he met in the retail forex market was previously a star trader - on vending machines. The second person he met was a marketing director of market maker. He expected to meet knowledgeable, successful and profitable traders. Instead he met fast talking, successful, profitable salesmen. Does this describe your experience? He knew that he had entered as he called it 'Lion Country'.

Thousands of traders have expected to become successful traders but instead have become the victims of marketing wizards, who propagate systems that promises mega bucks overnight. Shattered dreams are the end result of there trading. I call these Get Rich Quick (GRQ) schemes. Now don't get me wrong, many people do trade the currency market very successfully and some make a full time living from it. Unfortunately a vast majority of people who start trading the currency markets fall victim too the GRQ experts.

Beware of the marketing machine (MM), if they say that there system, book or e-course is too good to be true - then it probably is too good to be true. Invariably they will try and appeal to your emotions, by making outlandish claims and sometimes promises such as:

1. You will be wealthy overnight,

2. Money will roll in,

3. Buy you next Porsche from your Forex profits, etc.

The only thing a lot of these currency trading gurus are teaching you to do is to consistently loose money.

When you find this type of advertising exercise caution and run in the opposite direction. Remember people make a buying decision based on emotions and try to justify it with facts. They feed you with emotive half truths and promises. Half truths about what can be achieved and in what time. Half-truths about the value and appropriateness of certain types of analyses. Half truths about the solution to the problems caused by our emotions. Half truths about the risks involved and so the list grows.

The truth be known, making consistent profit when trading takes much more than buying empty promises.

I am yet to find a successful Get Rich Quick Forex Trader (GRQFT). Now you might come across the odd exception where someone starting out as a currency trader does make the odd dollar or two, but I guess in six months, they will be lucky to still have there profits in the bank.

We live in a world that wants instant gratification, hence the propagation of turn key systems that promise to make you into a GRQFT. Guys the truth is that successful traders develop there own systems.

Now it would be unfair for me paint all of these trading systems with the same brush because there are genuine systems that do work. There are educators out there who do a fine job at educating, but by the large they are few and far between.

Have you ever wondered why so many people try and trade the Forex market and yet very few of them succeed? Ask your self this question what distinguishes these successful traders from the unsuccessful traders?

It has been said that the currency markets are leaders in creating losers. Why is this? Well once again I suspect that it is because there is a lot of hype being propagated and not enough factual information. The uneducated trader does not have the knowledge to differentiate fact from fiction.

Why is this? The reason is simple enough. Many of these books or systems fail to address the difficult issues. It is hard for them to explain the trading concepts and nuances that go towards being a successful currency trader. Many of these concepts are intangible and illusive. If they weren't so everyone would be scooping up buckets of money. But as you know not everyone is.

The real winners in the trading world are those who can distinguish the real truths from the half truths. They are able to see through the emotions and find the right perspective with regards to trading.

Some understanding on subjects such as the role the randomness plays in influencing the markets, how leverage can make or break your profits, the importance of developing a trading system that is suited to your personal situation.

The markets are random by nature and by not understanding the role of randomness of the markets, is one of the main reasons why so many traders fail.

Winners and losers are separated on day one, even before any buttons were pressed. To change from a losing trader to a winning trader you need to make a paradigm shift.

To read more about these subjects go to

Foreign Exchange
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Foreign Exchange
 



Share this article :
Click to see more related articles