Monday, May 12, 2008

Currency Trading "Going" mainstream

Although Currency Trading for the average in investor has certainly been on the rise for the past several years, when I see articles like this one on YAHOO_BIZ it makes me think. Trading Currencies, just like stocks, is not as easy as it seems. Watching informercial's you see advertisers for systems. "Three red lights and you sell"....."Three green you buy". I cannot judge this system first hand as I have never tried it, but I can tell you that for any system to work you need to have the capital behind you.

What I mean by this is that your system can give you 2,3,4,5 signals in a row, all could be wrong and generate a small loss. Then give you the sixth signal which is a winner.....possible a big winner. The designer of the system will stand up and champion how well his system works......and they are correct. The problem is, did the Trader continue to execute the trade's as the system ecpected him to? Did the Trader have the capital and confidence to do so ?

I have always maintained to be a successful trader it is necessary to "Be in the Game". What I mean by that is there is always a move and ALWAYS another move. Miss this one that is ok, just make sure you have capital to participate in the next move. In trading you get markets wrong, often as lot. The key is to catch the few moves a year where you can make substantial money. I think that the average investor who trade their own account are looking for the "Holy Grail" to make a small fortune. I doubt that ever happens. There is no short cuts to success, and I think that in Currency Trading the vast majority of "Average Investors" are looking for the quick fix.

Good Luck and Good Currency Trading.



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