I really enjoy being a Forex investor AND trader. There are two different types of people – those who do the work and those who talk about doing it… The ones who teach in classrooms about the theories and the possibilities are one set of people and the ones who “put their money where their mouth is” is another set. I teach in the classroom, but at the end of the day, it’s my own money that I invest. As a matter of fact, I teach people USING my own money. I believe doing anything else is simply fraud (in my opinion) – you are a con man.
I am sorry for getting side-tracked for a moment; it just hurts me to see all that money being wasted (from students) on imposters who pose as Forex veterans, yet they ONLY have book knowledge. It isn’t until you have “put some skin into it” will you ever truly be a good instructor. Nevertheless, having said that, I will get back to the matter at hand – predicting the future.
I have seen Forex investors looking to these so-called expert traders (scam artists) for their Market advice and how it may go; either up or down. Here is what I am talking about: A Stock, Options, or Forex trader may be asked about the NASDAQ, AMEX, or Dow and where is it going to end up – in any given day/time. I suppose that no one ever shared with the investor that NO ONE would have even the foggiest clue what the Market will emphatically do. Realistically, guessing or predicting the Market is futile because we simply have no way of knowing – no matter how good you are…
I have told many of my students that in order to become a successful trader, you need to drop the belief that you are required to become a fortune-teller or a crystal-ball reader. The truth couldn’t be further from that. As a matter of fact, if it was all about luck and a matter of foretelling the future, then Forex would be no different than gambling – and it is by no means gambling. Forex, on the other hand, requires skill and a good system that can withstand the Market swings. The acronym K.I.S.S. definitely applies to Forex trading.
What I am about to share next is probably worth thousands of dollars. It is so well-known, yet so little used. When, what I’m about to share, is received by the countless thousands that are new to Forex, it will revolutionize the way we think. Here it is: “Buy low and when Market is increasing; then you want to sell when the Market is high and appears to be decreasing. There is NO way you can mess this up, right? Wrong! Every day, millionaires are being made and thousands are missing this seemingly overly simple idea.
The last thing that I will say about the idea of prediction is again, it is not necessary to know the future, but it is quite helpful to know when to exit a trade. I have noticed a serious wrong that, in my opinion, should be considered a Forex crime; staying in trades too long or pulling out too prematurely. Either they fail to take the possible profit (by pulling too soon) or they allow their losses to simply run too far (staying in too long). Again I repeat, you don’t need a crystal ball, but I do believe that it is a good thing for a trader to know when to cut the cord. If a trader hasn’t determined the acceptable loss and their profit margin from the beginning, then truth be told, they are