To succeed in this “Unforgiving Terrain”, one must be equipped with the right skill-set. Richard Wyckoff called trading, “The greatest of all the world’s games”. But this “World’s greatest game”, which is FOREX ($5.1 Trillion/day), is also the largest business in the world, with the speculative arm which trading belongs to, amounting to $1.6Trillion a day market.
Like all successful big businesses, a blue-print is what guides decision makers to take calculative and logical decisions to enhance their day-to-day activities and Forex ain’t no different. But this Blue-print is shrouded in secrecy by the dig dogs (investment banks, mega-hedge-funds, large mutual and pension funds etc.)
Forex education suffers a great deficit as there is little or a non-existent and structured educational module in currency trading. You have to have an unusual skill-set as a retail trader to succeed in currency trading. This is tantamount to saying; you have to trade like an investment bank, or a top-notch hedge-fund.
People come into the business of Currency trading, ill-prepared and they get slaughtered before the get to the Abattoir.
They trade when the odds are not in their favor, take too much leverage/risks, adjust stop-loss levels in the hope of a future recovery, let their emotions run wild and the list is endless.
I wouldn’t lie to you, its Rocket-Science to make your living trading currencies. Some of the reasons why over 99% of the retail community get squashed by their ineptitude and sheer lack of a required skill-set.
Make no mistake; this business has a guide, a business model which is outta the reach of the retail trader unless you trade like an investment bank which i mentioned earlier, you stand no chance of being successful in this “World’s greatest of Games”.
Money is not printed in this business, despite its colossal daily turn-over. It’s a zero-sum game; meaning money is lost and won by opposing parties.
You gotta be light-footed in this game because, Smart-Money might start a campaign and dump the pair in question soon enough maybe because they have seen a better opportunity else-where. How do you spot this change by SM if you don’t possess the requisite skill-set?
If you stay on your heels, you’d get burned out, you gotta be on your toes because of changing dynamics of the market.