Question:
I have lost so much already, although I earn a meager salary. For one full year this month, I have been in the woods of the forex market. So, if you will be different from the countless others I have come across, who are only out to deceive and see how they can make their own fortune out of my misfortune, can you tell me how in the world I can trade forex profitably consistently.
Tony from Shoeville
Answer:
Tony, somehow, some way, the world of trading has become mythological. The myth is that anyone can make money at trading. One key goal of this column is to dispel this myth. As well, I have made a commitment in this column to tell the truth, no matter how difficult for the questioner. Your email indicates you cannot afford to trade, much less trade unsuccessfully for one year. It is time to bow out, to retire, to quit wasting money on trading.
For all of you who find yourself in a similar position, seriously consider retiring. If the shoe doesn’t fit … Stop throwing money away.
For everyone else, Tony’s email raises two other important issues.
1) The trading world is full of sharks whose main purpose in life is to take your money with promises of trading success. These sharks lurk on the Internet, come at you in email solicitations, and lock their jaws on you as soon as you indicate interest. Sometimes, they are not easy to spot, as they come with smooth skin, pretty as the color of money they claim is so easy to make.
2) Markets are fickle, dependent on the collective will of those who buy and sell that market. Sometimes a winning trade is made when you “play” that will, not the pattern or the fundamentals. Knowing when to do this is an artful thing indeed, but one clue is to follow the news about, around, and outside your market.
Successful trading is hard work, patience, experience, knowledge, emotional objectivity, mental acuity, and a mild dose of good fortune all rolled up into a complex package tied up with the ribbon of Life. If all these things are clicking together, put your tools and your strategy to work and make some money; otherwise think twice about wearing shoe that just doesn’t fit—it will only cause you pain.
Trade in the day; invest in your life …
