"Forex trading could be your key to financial freedom if you could consistently earn pips and at the same time realising the power of compounding".- Harwin Poon


Where is the Holy Grail?

It's weekend anyway, so loosen up, seat back and read some useful insight. I came across this article from marketwise.com. It mirrors my view over trading and its such a waste if not shared to fellow traders and aspiring traders.

Where Is the Holy Grail?
It seems as if I've been seeing the same infomercials about trading over and over again. I'm a sucker for a good sales pitch. According to the infomercials, anyone can trade. It's just a matter of looking at a series of red and green lights or joining the right coaching group, right? Perhaps trading is easier than I thought. Maybe I'm making a big deal over nothing. I don't think so. I've interviewed many traders and talked to seasoned traders with proven track records, and none of them said it was easy. Sure, anyone can make a few winning trades and take home profits, but that is not the issue. The issue for many traders is making enough profits to come out ahead without feeding their account. The issue for many traders is how to do it for a living. And if you do achieve initial success, how far can you go without blowing out? Unfortunately, there is so much misinformation out there that it's hard to know who to believe, and the funny thing is that everyone accuses everyone else of putting out misinformation about trading. I've seen it all: Some trading experts say that you don't need to control your emotions, while other experts say that you do. Other experts have the ultimate system or indicator that will ensure tremendous wealth. All these experts seem to claim that they have the Holy Grail.

I don't think any expert holds the universal secret of success that is true for every trader, and that will ensure all traders become profitable. Why not? Every person who approaches the field of trading has his or her unique qualities. Trading advice that may apply to some people may not apply to others. There is only one way that you can determine if a piece of trading wisdom is right for you. You have to assess where you stand on your assets and talents, develop a realistic plan for success, and try out a few different methods. Whether you are trying to become an athlete or sell the most raffle tickets for a PTA event, you will never know what you can do until you make a commitment to succeed and try hard. There is no substitute for experience.

People are different. They have different backgrounds, experiences, and resources. One trader may have a trust fund that allows him to live comfortably and trade as a sideline. He may make $100,000 a year off the trust fund and need only $60,000 a year to meet basic living expenses. A second trader may work the night shift as a security guard and make $45,000 a year, diligently trading each morning to try to make an extra $20,000. If the trust-fund trader loses $40,000, all he has to do is live lean for a year. He can afford to lose $40,000, so it is not very stressful. He doesn't need to worry. He can handle the worst-case scenario. If the security guard loses $40,000, though, it is potentially a financial disaster. The pressure is on. He may actually need to achieve success as a trader to get out of trouble. This very basic difference in terms of financial resources can make a huge difference from a psychological viewpoint. Your life story matters, and people have very differing life stories.

People do not only differ in financial background, but in terms of personality. Some people are more emotional than others. They may have low self-esteem and take setbacks hard. I have seen some trading experts claim that controlling emotions is not important. It may not be the only issue a trader must face, but if you are the kind of person who has trouble handling your emotions, then it is a big deal for you. There is a sort of macho, competitive trading crowd out there who makes it seem like "you either have it or you don't." They imply that if you don't have the right kind of personality, then you can't make it in the trading business. It may be difficult but it is not impossible. I've met seasoned, professional traders who have trouble controlling their emotions occasionally, so it is misleading to make generalizations about traders. Some people have trouble with their emotions and some people do not. If it is a problem for you, it is vital to identify it, work on changing it or figure out a trading style that works around it. Again, only you can decide what works for you.

Some people may have a knack for trading. Perhaps they like math and problem solving and love to find new trading strategies. Other people may execute trades with aplomb. At one time, scalping was profitable, and most scalpers traded as if they were playing video games. They were quick with a mouse and could accumulate profits after a series of trades. Again, it takes time of find a niche, and when you find what is right for you, you can build skills and confidence to know when your approach works and what you can do. That isn't to say that anyone can do anything. But what you can do is know where you stand, and do the best with what you have. For some people, trading may be restricted to long term investing. If their trading capital is minimal, they may never make enough to trade for a living. But they can still trade and supplement their income from their day job. They can still have fun studying the markets and feel satisfied with the money they do make. Others may develop a track record for years and be able to gain the education and experience they need to trade for an institution. The only way to find out, though, is to make a plan, get the necessary training, make a commitment and gain as much experience as necessary. Don't let anyone tell you what you can and cannot do. Don't compare yourself to others. Find what works for you and develop the mental edge you need to win.