THE REALITY OF FOREX TRADING... MY VIEWS AS OF APRIL 2010...

One thing that I love about trading is to deal with the uncertainties that the market offer every now and then. The fundamental though, remain the same, but still the dynamics and the volatility are no different compared to when you are sailing on the Pacific Ocean... where you open yourself to any kind of storm, turbulence and even tsunami.

The point is... only the strong will survive. 

Without proper knowledge, skills, experience and preparation before you start sailing, there is little chance that you will make it back to the shore.

So, what has this to do with this posting? 

Nothing much actually as I just want to update and reiterate on my latest view on this market that at least some of you would appreciate, apart from counter checking my own understanding. 

Guys, the biggest fact of all is that trading is a game of probability where no one, no one can get it right 100% of the time... regardless of how fail-safe or sophisticated your system is... I've been there... I've done that etc etc... and yes, it is not easy... 

Otherwise my account would have reached that 6 to 7 figure level already...

But... for sure there is a profitable way to approach this market that is neither too complicated nor too hard for you to understand... since the answer will always play around the word of patience, discipline and risk management. Believe it or not?

Anyway, back to the topic above, there are 17 facts that I would like to share here that some of you may find it common, but still precious to you to really digest... 

1.      To make money in this market, you have to get it right. 

2.      Volatility is the scariest part of trading where a profitable trade could turn to a loser and vice versa.

3.      You can never fight the market force.

4.      Money Management is your insurance, the one that will protect you when you are wrong.

5.      System versus Probability. There is no system that can predict the market movement 100% as movement and price actions are direct consequence of market players’ action.

6.      The market is pre-dominated by fear and greed from the market participants.

7.      The big players in this market are the Central Banks, the tycoons, George Soros, institutional traders as well as brokers who are known as the market makers.

8.      Do not fight the trend. The trend is your friend, but not the market.

9.      In any trading day, big news are the major market movers.

10.  The best hours to trade is the European Session to London Session close, between 3pm until 12am midnight.

11.  Some brokers trade against their clients, some even operate on bucket shop basis

12.  The most difficult aspect of trading is to have the patience.

13.  The most demanding part of trading is to have the discipline.

14.  Psychology of trading is another key component in trading.

15.  To be emotionless is almost impossible, though doable.

16.  No one can answer the question WHEN in trading.

17.  Anything is possible here.

Till my next post... Safe Trade...