Lets look at the public's view of the Forex industry and the real truth and let's start with the so called experts:
Many Forex traders see a market which the experts, banks and brokers have an edge over them and they marvel at the sharp suited guys on CNBC and think they will never be able to compete with these professional traders, with there huge resources and the technology they have at their disposal but nothing could be further from the truth.
Professional Forex Traders are Experts at Making Money
The guys you see on TV talking about the market might know a lot about the news or the theory of currency trading but do they make money? Probably not – many are economists telling you what happened in the past and then they give vague predictions about the future (which are normally wrong) and the point is – their not traders.
The brokers who talk also know their subject in terms of theory but how many banks or brokers, make big profits on there trading accounts for for themselves or for clients? Very few - most lose money and those who win tend to make low single digit gains. Making a prediction that a currency might rise is very different to having to enter the market at optimal risk to reward, set a stop and have a profit taking objective – taking a view on a currency trade is not the same as actually having to trade it.
The myth of brokers and banks making money, has always been believed because, it comes down to our view of experts know best. In life we very often will seek professional help, for things we cannot do or wish to do ourselves and for a set fee, we can get a service from fixing our computers, to having a our teeth fixed with a filling. Go to the dentist and you require a filling, you will get one and pay a fee - so you pay and get the result you want.
In currency trading this is not the case. You pay a fee and are guaranteed nothing at all! Being an expert in currency trading is nothing to do with making money, its to do with selling a service with no guaranteed result. Just read the fine print on any managed money fund or broker account and all you get is how much you can lose! There is no guaranteed way to make money trading currency markets so when you consult an expert in the finance industry, its very different to most experts who can get us the result we desire.
There is of course a huge industry based upon trading strategies which will make you a passive income with no input from you – apart form operating a bit of software or following a signal service.
You Can Make Money Following Expert Systems
Many people believe this myth and its obviously not true but for some reason, a huge amount of traders see as the Forex industry and one which they can make money from with no effort whatsoever. The people who believe these schemes are the same once who believe they will make easy money from internet businesses, horse betting systems and ones which tell us casino games such as Roulette and blackjack can be broken.
Most of these expert systems are sold on greed and laziness and also, our belief that mathematics can be used to make easy money in trading. Mathematics and algo trading systems can't guarantee a result in currency trading like many claim because the rules of mathematics don't apply to a human market.
The Real Truth About Forex
There are a huge amount of systems and theories on currency trading but at the end of the day, the brutal reality about Forex trading is its not an industry which is governed by some law you can follow – its a human market which is chaotic and unpredictable. Its a market which is one which is simply one that challenges your mind not on an intellectual level because, you don't make profits on the knowledge you have nor is it a challenge on a work rate level, where you get more money if you work more hours – its simply an industry where you get rewarded for emotional control over a simple trading methodology.
The real truth about trading FX is how much money you make from your trading signal is all that you are judged on – not how much you have learned or how much effort you have made. The truth is you need to think to win in Forex trading and have emotional control and that will see you win.
Of course most FX traders cannot accept this because it means, they have to think and act on their own. Most people are conditioned by society, to respect so called experts and accept commonly held beliefs but if you do this in currency trading you will lose.
There is a huge amount of so called commonly accepted wisdom about trading online and much of it is complex or claims there is a hidden code to unlock the road to currency trading success and most of it is not based on the facts of what really moves the market and is destined to see traders lose.
If you want to win trading currencies you simply need to cut through all the so called wisdom, ignore expert opinion and learn to use a simple system with confidence, courage and discipline and you will win – is it that simple? Yes it is – the truth about Forex trading is not to fall for the views of the majority - so never be intimidated by an expert, complexity or try and follow commonly accepted wisdom, just do it for yourself and keep in mind - the only person who can give you success is yourself.