Two
completely opposite “schools of thought” dominate today’s public opinion
when it
comes to financial markets. One
school of thought is advocated by academic types, mostly economics, finance
and mathematics professors. They will tell you that “markets are efficient”
and that there is a zero chance for an individual to outperform any liquid
financial
market in the long run. Well, of course the guys with cushy university jobs,
without any real world or business experience, will tell you that you don’t
stand a chance to succeed. You should continue
to work your little day job so that they have someone to make their sandwich
or to change oil in their cars. People who subscribe to this theory usually
choose to stay out of financial markets and keep their cash stashed in their
mattresses.
Another school of thought is advocated by financial TV and radio stations,
investment firms, brokerages etc… “Surprisingly” they are all trying to
portray financial markets as an idyllic place where happy Moms, Dads and
Grandpas use sophisticated software to place winning trades from their
laptops while vacationing on sandy Caribbean beaches… Countless “talking
heads” are enjoying their daily parade on TV channels such as CNBC or CNN
supplying mostly worthless advice to general public. Their “analysts” change
their opinion every day in a fashion that even George Orwell would find hard
to comprehend. And everything they say always seems to
“make
sense” at the moment when they are saying it. Next day, when it turns out
that they were totally wrong, they are telling you an entirely different
story as if yesterday never happened. And if you noticed, the hosts never,
ever bring that up. Why? Well, “the show must go on”. They have to show you
that every day you are missing on countless trading opportunities; you just
need to watch their shows, subscribe to fancy software that they sell you
and you are on your way to early retirement.
I do agree with the statement that financial markets are efficient. They are very efficient in one thing - transferring money from bad and naive traders/investors to
the pockets of those that know what are they doing. You are now probably asking yourself “What am I doing in this field? Do I have any chance to succeed?” The answer is “Yes, you do.”. The system that we are about to reveal to you is a fail proof entry and exit strategy that will put you on equal level with big investment firms and with experienced professional traders.
A question that I hear the most from aspiring traders is “Which market should I trade? - Stocks, Futures, Commodities...?” Well, with the right attitude and dedication there is money to be made in every market. However, there is one market that is still largely neglected by smaller traders even though it offers great profit potential and numerous trading opportunities. It is Forex or Foreign Exchange market.
Why should you trade forex market?
Simply said, no other trading instrument comes even closely to forex market when it comes to liquidity, 24hr market environment and last but not the least, profit potential. Forex (c
urrency)
market is the largest (most liquid) financial market in the world, with an
average daily volume of more than US$ 1.5 trillion, which is more than all
of the global equity markets combined. Forex trading
day starts in Wellington, New Zealand followed by Sydney, Australia, Hong
Kong and Singapore. Three hours later trading day begins in Dubai (UAE) and
other Middle Eastern countries. In couple of hours they
are followed by Frankfurt, Zurich, Paris, Rome… London is the last one to
open in Europe and five hours later it is followed by New York, Chicago and
finally the West Coast. The busiest hours are early European mornings
because at that time major Asian exchanges are still open and European
afternoons because at that time major US markets are open at the same time
as Europe. Therefore, wherever you
live and whatever your work hours are you can always find some time to
participate in forex trading as opposed to stock market where you are
usually limited to the regular business hours.
Another
property of forex market that makes it an excellent trading instrument is
use of leverage. Many beginning traders don’t fully understand the concept
of leverage. Basically, if you have a start up capital of $5,000 and if you
trade on a 1:50 margin you can effectively control a capital of $250,000.
However, a two percent move against you and your capital is completely wiped
out. If you are a beginning trader you should not use more than 1:20 margin
until you get comfortable and profitable and then and only then you can
attempt to use higher margins. What does 1:20 margin mean? It means that
with your $5,000 you will control a capital of $100,000. Let’s say you are
trading EUR/USD and by using our entry strategy you have decided to enter
the trade on a long side. That means that you are betting that USD will
depreciate against Euro. Let’s say current EUR/USD rate is 1.305. Again, if
your trading capital is $5,000 and you are using 1:20 leverage you will
effectively be exchanging $100,000 to Euros. If the current rate is 1.305
you will receive 100,000/1.305 = 76,628 Euros. If the trade goes in your
direction the margin will work in your favour and 1% decline in USD will
mean 20% increase in your start up capital. So if EUR/USD rate moves from
1.305 to 1.318 you will be able to exchange your 76,628 Euros back to
$101,000 for a profit of $1,000. Since your start up capital was $5,000 it
is effectively a 20% increase in your account. However, if the trade went
against you and USD appreciated 1% vs. Euro your account would be reduced to
$4,000. That would not have happened as our strategy has built in hard stops
to prevent such outcome.
And the third and equally important property of forex market is the fact that trends in forex market last longer and are more clearly defined than in any other trading instrument.
“make
sense” at the moment when they are saying it. Next day, when it turns out
that they were totally wrong, they are telling you an entirely different
story as if yesterday never happened. And if you noticed, the hosts never,
ever bring that up. Why? Well, “the show must go on”. They have to show you
that every day you are missing on countless trading opportunities; you just
need to watch their shows, subscribe to fancy software that they sell you
and you are on your way to early retirement.I do agree with the statement that financial markets are efficient. They are very efficient in one thing - transferring money from bad and naive traders/investors to
the pockets of those that know what are they doing. You are now probably asking yourself “What am I doing in this field? Do I have any chance to succeed?” The answer is “Yes, you do.”. The system that we are about to reveal to you is a fail proof entry and exit strategy that will put you on equal level with big investment firms and with experienced professional traders.
A question that I hear the most from aspiring traders is “Which market should I trade? - Stocks, Futures, Commodities...?” Well, with the right attitude and dedication there is money to be made in every market. However, there is one market that is still largely neglected by smaller traders even though it offers great profit potential and numerous trading opportunities. It is Forex or Foreign Exchange market.
Why should you trade forex market?
Simply said, no other trading instrument comes even closely to forex market when it comes to liquidity, 24hr market environment and last but not the least, profit potential. Forex (c
urrency)
market is the largest (most liquid) financial market in the world, with an
average daily volume of more than US$ 1.5 trillion, which is more than all
of the global equity markets combined. Forex trading
day starts in Wellington, New Zealand followed by Sydney, Australia, Hong
Kong and Singapore. Three hours later trading day begins in Dubai (UAE) and
other Middle Eastern countries. In couple of hours they
are followed by Frankfurt, Zurich, Paris, Rome… London is the last one to
open in Europe and five hours later it is followed by New York, Chicago and
finally the West Coast. The busiest hours are early European mornings
because at that time major Asian exchanges are still open and European
afternoons because at that time major US markets are open at the same time
as Europe. Therefore, wherever you
live and whatever your work hours are you can always find some time to
participate in forex trading as opposed to stock market where you are
usually limited to the regular business hours.Another
property of forex market that makes it an excellent trading instrument is
use of leverage. Many beginning traders don’t fully understand the concept
of leverage. Basically, if you have a start up capital of $5,000 and if you
trade on a 1:50 margin you can effectively control a capital of $250,000.
However, a two percent move against you and your capital is completely wiped
out. If you are a beginning trader you should not use more than 1:20 margin
until you get comfortable and profitable and then and only then you can
attempt to use higher margins. What does 1:20 margin mean? It means that
with your $5,000 you will control a capital of $100,000. Let’s say you are
trading EUR/USD and by using our entry strategy you have decided to enter
the trade on a long side. That means that you are betting that USD will
depreciate against Euro. Let’s say current EUR/USD rate is 1.305. Again, if
your trading capital is $5,000 and you are using 1:20 leverage you will
effectively be exchanging $100,000 to Euros. If the current rate is 1.305
you will receive 100,000/1.305 = 76,628 Euros. If the trade goes in your
direction the margin will work in your favour and 1% decline in USD will
mean 20% increase in your start up capital. So if EUR/USD rate moves from
1.305 to 1.318 you will be able to exchange your 76,628 Euros back to
$101,000 for a profit of $1,000. Since your start up capital was $5,000 it
is effectively a 20% increase in your account. However, if the trade went
against you and USD appreciated 1% vs. Euro your account would be reduced to
$4,000. That would not have happened as our strategy has built in hard stops
to prevent such outcome.And the third and equally important property of forex market is the fact that trends in forex market last longer and are more clearly defined than in any other trading instrument.
