Forex Trading, also referred to as foreign exchange, FX or currency trading, is a decentralized global market where all the world’s currencies trade. With an average daily trading volume exceeding $5 trillion, the forex market is the largest, most liquid market in the world.
The misconception is that you can get rich quickly through forex trading. It takes time and dedication. AFROSAGES shares with you 5 lessons of forex trading.
There is famine in the land, and one of the few remaining food sources is the forest called Forexia. Unfortunately, some monsters have already made their homes in the forest. Everyone who ventures into Forexia must fight, defeat, and steal food from the monsters.
Forex trading is a zero sum game. For you to win, someone else must lose. Those losers may be monsters (large institutional players) or regular people. For you to win consistently, your strategies must beat theirs.
100 farmers came together to attack the monsters so that they could steal some food. They sang songs of encouragement to themselves and went gallantly into the forest. NONE of them made it back. They were all eaten by the monsters.
0% of unskilled, untrained traders make money. Don’t jump in without any training or with a few days of training or after reading a book. You will lose all your money.
100 paramilitary fighters trained for 2 months and strategically entered the forest in a bid to get some food. 95 of them dies in the forest, ONLY 5 made it back with a few crumbs of bread.
About 3 – 5% of people make a little money with a few months of training in Forex trading. Most people lose everything they put into it.
Another 100 soldiers trained extensively for 6 to 12 months in a bid to understand the intricacies of Forexia. They went into Forexia with a clear strategy and fought hard with charts and technical analyses. Only 25 of them made it out with some food.
Only 10 to 25% of full-time traders with deep expertise and long term training in Forex trading techniques make any money and just about 15% make a living with it.
Meet the monsters; George Soros, Stanley Druckenmiller and Bill Lipschutz. These guys eat retail traders for lunch.
The monsters are smart, they have immense resources, and they play to win. Your FX trade is contesting against monsters with 100+ mathematics PhDs on their payroll, crazy fast computers with >20GB RAM, and 100s of news and information analysts who ONLY think about FX.
I am a pretty smart guy. I have always done well with esoteric information and standardized knowledge. But I don’t think I can compete creditably against the monsters.