Wednesday, September 30, 2009

Profit Vs Consistency in FX Market.

When I flip out newspaper advertisement column on FX seminar and read some very catchy words; 'Making USD50K in 1 month, Turn my account from USD10K to USD71K and the list go on..." I wonder why all the gurus still conduct seminar if they have incredible skills to make money in Forex market. I would say they are better then Soros, most of you know Soros never claimed himself as one of the greatest speculators.

Anyway, are the so called gurus making false statement? I don't know. When you really want to become a FX trader, you must ask yourself what you want. Of course, everyone will give me same answer, that's "making money". I would said "Making money consistently".

To make money consistently in FX market is not an easy task. As written in my previous articles, we are human with emotion attached on it. In fact the whole market movement is driven by emotion and perception. Some new traders can make money as advertised in the newspaper for a while, they will lose back once they are over confidence.

Another group will make money consistently but with a smaller return. This group is a bit sceptical, they tend to believe market is always right. Once they make mistake, they will get out quickly to avoid larger damage. They wont feel they miss the train as they know there is always the next train available to the party. As for me, I make money consistently in every 3 months for my clients. I admit some months like December and October are the volatile months. Volume in December is too thin where as Octorber always consider as the "Bull fight Bear" market. In this particular months, I always remind myself to be careful in the market.

Of course, Soros said before "Market is always wrong." If you have the power like him, you can say so. As I mentioned in my Forex party article, if you are big enough, you can be the deejay of the party and choose the music you like. However, with the size of transaction in FX market today, it is unlikely a single person can manipulate the market. But if you have FX good friends on your side, that is another different story.
 
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