What you are about to read below may surprise you. And it is probably not what you want to hear about trading experiences on the Forex market. It can make the experienced masters and the media angry because it is based on uncensored facts about the foreign exchange industry. All of this you need to know before making any more transactions.
If you don’t want to be crushed and kicked out of the market, you need to read carefully and remember what I am about to share with you below.
The online media and the “propaganda” that you hear every day have the same purpose of luring noobs into traps. Yes, the noobs here are you, and for sure, they don’t want you to know. Basically, this industry wants you to trade without thorough preparation, or without a clear sense of what you are doing. Because they know it’s the fastest way to hook dollars out of your pity pocket.
Please don’t blame me. I don’t mean that you can never be successful with the Forex market. But if you are still following the path of the crowd out there, chances are that you’re still struggling with billions of theories as well as accounts shrinking. This is exactly what the industry wants you to do, like a fat pig waiting to get slaughtered.
This article is for you if you are looking to learn about the forex market, or starting to try trading with your real account. Please read it.
How the foreign exchange market REALLY works
You may not have read these anywhere
You may not have figured out yourself being “driven” by the Forex machine yet. This industry does everything it can to get you focused on its glamor and its best aspects.
The truth is: (most of) blog sites, forums, websites, and the media directly or indirectly make traders misunderstand the risks and possible profits in trading foreign exchange. Basically, they direct you to the “abattoir”, the foreign exchange market. Markets and brokers don’t care if you are at a loss. And if you make a good profit, they will notice you. They will note you down in a list of tracking accounts and do shady things that some tricky platforms do. Your blood will be “sucked” slowly, little by little.
When you trade with your forex broker, they always earn brokerage fees whether you win or lose. This industry is full of brokers who always want and influence you to trade as much as possible. They do not need to know and do not care whether you have learned the basics or not, have had any Forex knowledge or trading experiences.
The less amount of knowledge you know, the more money you “gamble” on the market and lose. If you intend to or are trading with a real account without the most complete knowledge as possible, then stop immediately. You are groping on a minefield without knowing where the mines are hidden. Stop it.
You should not spend money on robots advertised that will help you earn several thousand dollars a month without doing anything. Also don’t waste your money on courses, seminars, and promises to bring you riches quickly. You need to learn to understand the market, read the candle signals, etc. Trade yourself, and learn from both successes and failures. Do not trade imitating others. Do not trade with robots.
Get down to earth and see what’s happening in reality
If you are having great hopes and expectations for forex trading, I will not be the one telling you not to dream anymore. I am the one who pulls you out to stand in reality. Once your expectations don’t “match” with reality, that’s when “pain” happens.
You’ve probably seen (many times) software or Forex trading bots for sale, with great promises of how much you can make even without doing anything or having any experiences. They show you a series of photos of real trading accounts with daydreaming results. Be careful, they can easily be edited or created with the Photoshop software.
This is also the reason I will never show my account with you. I believe that through what you read in this blog, you can evaluate my trading ability. “Don’t believe what you hear and half of what you see.”
Regarding courses or seminars (usually up for selling), do not believe if you just see them offer the monumental and rich images of “successful” traders. (Up to here, I remember the foreign exchange course of Jimmy Wang organized by Babylon when I first learned about the foreign exchange market years ago. It has always been full of pictures of supercars and villas. I didn’t go to this course. And I heard a lot of complaints on some of the forums about this training course.) All they want and try to do is to bring you a false and dreamy look.
Never be too confident when you’re still a newbie
Overconfidence is one of the big problems that newcomers get into, especially after they become very successful with a demo account. Many times, I heard from you guys that in just a moment, your account lost half of the money or even burned out. Most newbies do not use a stop-loss. Even if you place a volume of 0.1 lot, the amount you lose in a few seconds is too terrible.
Foreign exchange trading is a form of short-term investment which is much shorter than securities trading. You can’t hold an order for several months or a year like securities. And more specifically, stop-loss is something you must have in order to survive. Never execute an order without a stop-loss. It is very likely to happen once your order is placed on the market and you are immediately setting up a stop-loss. With those few seconds, your account is dead.
Do not be overconfident if you are having several consecutive winning orders. Do not think you have soon understood the market or have grasped the “broker”, etc. You will return all the profits to the market soon.
After many years of losses and continuous learning, I eventually know what I’m doing and need to do to survive with the market and make money from it. If you are new or your transaction time is not long enough, never go subjective. Trade with a small account and determine your initial goal. It is not about making a lot of money, but simply not burning out your Forex account and learning experiences to observe the market movements.
I, and many people I know, know that in order to make real money on the Forex market, it takes years to have experiences and fairly understand what is going on in the market and trade properly. I feel that it will be more fortunate for you if right from the start, you encounter losses or even burn out a few accounts. Success and making a lot of money as soon as entering this harsh market can become a disaster.
A lot of people think that because they have experiences of succeeding in a certain field, they can do the same thing when trading in the forex market. My friends and some people I know are very successful people in fields such as real estate, phones, restaurants, etc. But they all lost a lot of money with forex and stock. This thought is definitely a mistake. Trading, like any other field, takes a long time, effort, and money, etc., to learn how to “understand” it.
Ego and madness
You, who are reading these words, could be an experienced longtime trader (2 to 5 years or more). However, you may be still struggling with losses and disappointment. If you’re like that, take a serious look at how you trade, the mistakes you make, and the bad habits I’ve mentioned in many articles. You might know you are having those problems but can’t change them, might not you?
A person with a huge ego and an arrogant personality will not be successful with forex trading. You are never wiser than the market. And the market is always right.
Not knowing what mistakes you make and always struggling to find the “holy grail” as well as a perfect money-making method are the reasons that most participants lose money. Trading is the activity that you conduct while correcting and learning.
Study, study more, study forever. You will have to learn for the rest of your life because you are able to trade up until you enter the afterlife. Pay attention to the mistakes you make repeatedly. Write them down on sticky notes and stick them onto the screen in front of you. It’s one of my secret Forex tips after years of trading experiences. You need to identify them correctly, and gradually change them to get rid of them.
And I strongly recommend that you reconsider if 4 or 5 years have passed and you are still in constant loss with the forex market. Chances are, you are not “in” with this business. Stop and put money, time, and mind into other work.
Don’t be fooled by the thought of “big events are going to happen right now”. You will only be disappointed
You know that there are a lot of people who make a lot of money with forex. Yes, it’s true. And maybe you do not notice but I know. There are many more, many times more, people lose a lot of money with forex (90-95% compared to 5-10%). If you are not aware of what you are doing or do not have a reasonable method without capital management skills, then you must be on the endless list of losers.
Be careful, I know you still want to find methods or ways to win, and even win most leisurely (such as buying robots). I assure you that there is not any system or method that will get you rich overnight quickly with forex. Nor will any robot make money for you in the long run without you having to do anything but install it on your computer.
My trading path and method are based on simplicity and logic as well as the ability to read charts correctly. If you can’t read price charts (and thus understand what’s going on in the market), just throw away those obscure methods and knowledge. Because if you are like that, you will never succeed.
I trade with the price action strategy. I use the almost original chart with only Japanese candles, without a bunch of messy indicators, no A-lines or B-lines, or what-looks-great, etc. And I focus on what is the most primitive and basic, the “original document” from the market.
And this blog is where I will share everything I know and my Forex trading experiences with you. Thank you for taking the time to read these articles.
Wish you a good working day.