About Trading

Trading is a zero sum game, and if someone is making money, it means that someone is losing it. It is never an equal sum, and he fact is that a small number of people make a lot of money and the masses lose.
Everyone wants to be on the winning side, but the facts speak for themselves.
In forex, 85% of the traders lose money.

Do the small percentages of winners have the Holy Grail?
Certainly not.

If there did exist a holy grail, then everyone would be a winner.

In my opinion, understanding the entire business of trading and applying the correct procedures is what separates the winners from the losers.
In all my years of trading, and my experience of teaching technical analysis, I have realized that applying technical analysis is not enough to be a successful trader.
One can be successful in this exciting, fulfilling and yet demanding business, if and only if, one has a definite plan on how to approach the market.

Unfortunately most traders do not look at this aspect at all, which ultimately leads to failure.
It is the general assumption that following the indicators will give good trades, which will ultimately make money. When the newbie's realize that trading involves lot of hard work,
patience & determination, most of them just give up….or are taken out from the market.

The 3M's
Method, Money, and Mind - They are the holy trinity of trading, and it's important that traders recognize all three before they can really achieve consistent success.
At first newbie Traders are mainly interested in the Method...all they want to know is which indicator to use to be an immediate success.
Or even better they are looking for trading signals, with someone telling them when to buy and when to sell.
It's only a seasoned and professional trader who understands that Mind and Money are more important and that Method should really only account for about 20% of the Triad.

If one were to distribute the 3M's on a scale of 1 to 10, then
Money Management would account for 50%;
Psychology of trading would account for 30%;
And Technical analysis would account for only 20%.
The bottom line is that once the 3M's are taken into consideration, it automatically puts the trader into the top 15% bracket of the winners.



Copyright © 2007 - 2012 Fibforex123.
Crafted and Cared by honeybee Media, Mumbai