I’m a trader. Does this mean something special? Does this mean something specifically defined? Not really.
Traders are different.
IT’S A WORLD VIEW
A trader’s “way of being” is different depending on internal and external factors. Internal influence comes from individual psychology and this can also define the line that divides winners from losers. But, differences are created also from the environment in which a trader grows up and develops his or her skills. The individual’s culture together with mass culture creates specific kind of traders and specific approaches to the world of trading.
I’m also an educator and through this point of view it becomes important to understand how different traders can be depending on the country they live in. To educate traders to elevate their skills to their maximum level needs to be done going the way of least resistance and this means each of them has to be driven along his “way of being” or at least using that as a starting point.
CIAO!
I’m an Italian trader and Italy is the country I know best. It’s also the country I understand worst. More than in other parts of the world, the trading business grew up and was pushed by Expos and similar events. The sponsors were brokers and the main message has obviously been “executions, executions.” Most Italian traders are discretionary spending many hours in front of monitors to figure out how to beat the markets.
Among those there are an important percentage of scalpers, people who easily close more than 100 trades per day and build their equity lines out of a sum of micro profits. What is really missing in Italy is a culture of automated trading. In fact, in Italy trading systems are very seldom used. This approach is also strongly bound to Italian culture and fantasy. It is hard for Italian people to stick to predetermined rules when sometimes physical gut instincts can lead decisions. Furthermore, most loved markets are stocks, while futures are not that popular in Italy.
FLASHY
Trading is exhibited as entertainment to keep people focused; I still remember one of my speeches at the last IT Forum in Rimini (the biggest event about trading and investing in Italy) where I was presenting on a sort of wrestling ring among traders competing in a trading contest.
THE GERMAN APPROACH
Not far from Italy but far from Italian mindset, there is Germany where trading is also very popular. Here trading systems are of common interest and trading is spread across all levels. In fact, a good portion of the market is in hands of CFDs (contracts for difference) in order to allow trading with very limited capitals. Where CFDs are not used,, focus is mainly on futures and especially on FDAX future, stock market are more difficult to face due to higher transaction costs.
KEY MARKETS
CFDs are not yet leading retail market in Eastern Europe where futures and mostly forex are capturing interest of traders or people dreaming of becoming a trader. It is interesting to notice the different attitude of visitors at an Expo in Prague compared to visitors to a similar event in Frankfurt or in Rome, if in Germany and Italy traders are much more “mature.” In the Czech Republic it is still possible to feel the enthusiasm of newbie cultivating their dream of financial independence; eyes of people there are still shining when listening to speakers.
Forex is rapidly gaining importance all over Europe appealing trading with the “misleading” message of high leverage to gain high profits (losses are never mentioned…). But to find forex’s “real world” it is necessary to look outside Europe.
DUBAI
Moving to Dubai, for example, FX markets are those on which most trading messages are built upon, trading is “pips-related” but somehow it is still in a sort of dark spot, such as an unknown element about which somebody is telling wonderful stories. The Arabcom Group is doing a tremendous job increasing year after year the contents of their Expos about forex markets.
Moving to the Far East the situation is in strong and fast evolution. It is still true FX markets do have a very strong appeal there but there are countries where trading forex has some legal issues if not done in the “right way,” so missing proper regulations for individuals there is curiosity but also sort of a brake which will probably soon be released.
Asia is a wonderful and big country, people are eager of getting a good education to build themselves as traders but also there the market seems to be at the start of its growing curve and a lot of opportunities can be mutually found between educators and students. Speaking to Chinese people I found a very wide variety of skills developed at different levels, and the same I found when I met traders in Singapore.
I’ve been a speaker in all above countries, in United States of America I’ve been involved in several experiences (how could I forget the award ceremony on the trading floor of Chicago) but I’ve not yet spoken in front of a public, next February I’m honored to be a speaker at Trader’s Expo in New York, it will close the gap on my “round the globe” trip talking to traders.
COMMON GOALS
Even not having finished yet the whole trip I can state that what traders do have in common, all over the world, is the strong will to become financially independent, no matter how capitalized they are, no matter what markets they trade and no matter what trading style they use. All are approaching other traders, mentors, events or publications keeping in mind that a new idea might just be out the door and that new idea could make the ultimate change to their existence.
Everywhere I go I find people who remind me of how I was many years ago, the same dreams and the same search of something, I found it and I wish all readers to be on the right way in their treasure hunt.
#####
Read specific trading ideas in our Commentaries section.
