Forex Articles

[marc walton]

Hi, In this section we have lots of 100% original forex articles many of which were written by members of our forexmentorpro program. We had a very successful forex competition held over the Christmas period for members of the forex mentor site I run with Dean Saunder. Top prize of a dvd forex course that cost me over $3000 went to Charles from Canada. We had smaller prizes of forex products and free membership periods. Some of the winning articles, videos & even forex poems can be found below.In a few weeks time we will launch our summer competition for members. Top prize is lifetime membership to www.forexmentorpro.com (worth $Millions)!!2nd Prize will be a one to one phone chat with yours truly to discuss any problems you may be having/help I can offer for your forex trading success & then a mixture of forex products & the top 30 can join Dean & I in a "Live" forex trading webinar broadcast. You will be the test pilots. If it works well then we will be looking to make webinars a more regular feature, all included in the price of your membership.We had some great articles and videos and some of the best are published here for your enjoyment. All entries had to be 100% original, so some interesting stuuf here, regards, marc

[marc walton]

Hi. The following is an offering from Rainer for the Christmas competition.Including lots of great quotes like this from Warren Buffet:

To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights or inside information.
What’s needed is a sound intellectual framework for making decisions and ability to keep EMOTIONS from corroding that framework.
WARREN BUFFET

or my personal favourite from rainers article:

“If Karl, Instead of writing a lot about CAPITAL, had made a lot of CAPITAL, it would have been much better.”
KARL MARX’S Mother

Fellow Trader

The Two Basic Rules For Affluent Investors:
RULE # 1 – Avoid Mistakes
RULE # 2 – Don’t Forget Rule # 1

Investment Mistakes:

MISTAKE #1
Treating Investment Like A PART-TIME Job, Not A Business.

Which means you need to prepare a Business Plan, have good STRATEGY and a sound Money Management

Also keep in mind: There is no “security” on earth, there is only “opportunity”!

MISTAKE #2
NOT HAVING AN ASSET ALLOCATION STRATEGY

“One thousand Dollars Left to Earn Interest at 8% will grow to $43 Quadrillion in 400 Years,
but the first 100 years are the hardest.”

” When a Man tells you that he got RICH through Hard work, ask him : WHOSE?”

A few days ago I this e-mail hit my INBOX!

Hi Rainer;

Jim H., one of my star students in the Mastermind Mentoring Program,
joined when I first launched back in November 4th of this year
(about 6 weeks ago), and it’s to my amazement how quickly he was
able to take everything I taught in this program and apply to his
own account… here are his exact words:

“…I was having mixed results and generally going nowhere. Within a
few weeks of reading the newsletters and taking the time to truly
understand how the pieces fit, my account tripled in size.

Always Keep in Mind: BETTER GETTING RICH SLOWLY - BUT SURELY

“The safest way to double your money is to fold it over once and put it in your pocket.”

he also offers an e-book, for not less then $$$$ somebody told me to run as fast as possible if you get a e-book offered for more money than an antique hard cover book would cost you, ASK YOURSELF: what can be so valuable you did not already read about?

If you don’t know the answer, you did not educate yourself enough to begin with! And to start with get all the fee stuff first!
Can this be the HOLY GRAIL? We all are looking for?

“The Idea That All Wealth Is Acquired Through Stealing Is Popular In Prison And At Harvard.”

A few days later my inbox got hit again with an other irresistible offer: Sounds Familiar?

Dear Friend: USD 62,000 in just three trades! Out of interest I posted on his BLOG: I ask about how big was his SL, how big the Lot Size, how much time did those three trades take to achieve such a great result etc. etc. my postings never made it, because they got deleted, from the MOD. You Guess why?

ONE LESSON I HAVE LEARNED THE HARD WAY:

“When a Man with Money meets a Man with Experience, the Man with Experience ends up with the Money and the Man with the Money ends up with the Experience.”

When you get such offers from alleged serious FX Gurus go and ask your conscience thoroughly “Can this be possible, can such statements be TRUE?”

“YOU CAN GET POOR A LOT FASTER THAN YOU CAN GET RICH”

I can hear you thinking? Would I be able to become a successful full time trader? and yes I am convinced that you can, just you will not achieve making a whopping 62,000 after three trades when you account size is US 2500,00 and not U$ 1 million with using sound Money Management!

“MORE MONEY HAS BEEN LOST SEARCHING FOR YIELD THAN AT THE POINT OF A GUN”

Ask yourself, why would anybody sell such money print machine in first place? Answer: Because more likely he is not planning to trade HIS strategy anyway!

Make no Mistake: “A Fool and His Money are invited EVERYWHERE.”

Never forget the following, to achieve something in life one has to work hard for it. One can only make lots off money in short time when he/she invest lots of money (OR WINS THE LOTTERY), or Bernie’s style! To the contrary: One can only lose a lots off money having lots of money in first place!

MISTAKE #3
TRYING TO TIME THE MARKET

“A STUDY OF ECONOMICS USUALLY REVEALS THAT THE BEST TIME TO BUY ANYTHING IS LAST YEAR.”

This speaks for itself, try to learn sound basics to apply to your trading, never try to outsmart the market and don’t guess!

MISTAKE #4

LETTING EMOTIONS DRIVE INVESTMENT DECISIONS

“There Are Only Two Emotions in Investing: FEAR and GREED.” This is 100% TRUE :

“MONEY DOESN’T always buy Happiness.

People with Ten Million Dollars are not necessarily happier than People with Nine Million Dollars”

MISTAKE #5

EXPECTING ANY MANAGER’S INVESTMENT APPROACH to WORK All the TIME

” Wall Street Guru:Someone with HIGH Degree of SELF-DELUSION and a Strong BULL MARKET”

Conclusion: Don’t make the mistake to trust your strategy all the time year round, because market conditions change throughout the year!

MISTAKE #6
GETTING CAUGHT UP IN A RELATIVE PERFORMANCE GAME

” It’s Better to be APPROXIMATELY RIGHT than PRECISELY WRONG.” ” A Fool and His Money are invited EVERYWHERE.”

MISTAKE #7
Not Having an INVESTMENT MANAGEMENT CONSULTANT

“Advice is what we ask for when we already know the ANSWER but wish we DIDN’T.” Faith in higher authority to help you with making tons of money:

“If you would know what the LORD GOD thinks of Money, you have only to look at those to whom HE GAVE IT”

Earn your plug, don’t pray on the LORD this is not what he is supposed to do, believe me!

Please take all off this into consideration when your inbox get hit with:

ARE YOU READY TO FINALLY MAKE A STEADY PROFIT IN FOREX ?

ARE YOU TIRED OF BROKERS ALWAYS TAKING YOUR MONEY?
DON’T BE FOOLED BY THE FAKE LOOK-A-LIKE TRADING SYSTEMS!

WE’RE PUTTING AN END TO ALL THE MADNESS

BY GIVING YOU A SYSTEM THAT THE BIG BANKS AND BROKERS TRADE WITH EVERYDAY

Sounds Familiar?

when once again you get hit with a promising BRAND-NEW 572% plus gains in just 21 days Strategy or a never revealed before EA – Robot which doubles your account in less than 4 weeks with a proven copy and past account statement read my post once again!

“The Idea That All Wealth Is Acquired Through Stealing Is Popular In Prison And At Harvard.”

Don’t get me wrong, there are Strategies out there they do work and it might be that there are ROBOTS they do generate gains,

I owned them all, before returning them soon after, when I start to realized their MM just doesn’t add up!

Also always ask yourself what is it! Why would those developers of such WONDER ROBOT not just trade themselves and let the WonderBoy generate those HUGE RETURNS into their own accounts? Because they know this does not work in the long run, but to be honest they offer you an upgrade despite the fact they told you to have tested the ROBOT for years????

LOL

Why did Coca Cola not sell there recipe yet, because they make tons off money themselves, RIGHT!

Achieving to be a trader or make an income trading, you have to learn the principals to acquire the judgment to find out if something works or it does not.

One can see it in this way: e.g. if you do not know 2 + 2 = 4 or 2 x 2 = 4 to begin with, how can you be sure using a calculator feeding the same numbers make the outcome right?

There is a small possibility you could have hit a wrong button and the outcome changes in a heartbeat!

BTW: all of this applies to all business not trading only, or do you think Warren Buffet does not know how much is 2×4 without a calculator?

You have to have knowledge and use common sense to begin with to make a sound judgment and this you can only acquire through education, learn the basics and test it on your own, don’t believe blindly because this can cost you and finally it will!

BELIEVE ME I KNOW WHAT I AM TALKING ABOUT, I MADE MILLIONS AND I LOST ALMOST ALL OFF IT, BECAUSE I MADE ALL MISTAKES I TALKED ABOUT EARLIER!

BE AWARE, BE ALERT

Don’t get me wrong, I knew all of this beforehand, I just did IGNORE all of this and I pay dearly for it, not following the rules! FEAR & GREED

You like to know more about the world of investing, get the book BLUFF POKER than you will understand why you should know about investing in first place, I read the book and still made all the fundamental mistakes one can possible make, listen to me it will reward you in one or an other way!

Please don’t be COMPLACENT

There is a saying: fool me once Shame on You, fool me twice Shame on me!

Last but not least:

Have a healthy prosperous 2010!

Rainer

[marc walton]

DIARY NOTES ON MY FIRST 12 MONTHS IN FOREX: A beginners guide to forex?
Here is an article written by John T. One of our members. This is Johns’ entry for the Christmas competition. I am sure many of you will have experienced the same feelings – I certainly have! It also ties in with the Money Management article I posted the other day & did I mention DISCIPLINE

– some patterns everyone will recognise.

Why am I trading forex?

Fed up with losses or inconsequential gains from taking investment advice I decide the only way to make money is to do things myself. I think I’m intelligent so will easily pick things up. The longer term aim is to attain financial independence by scaling up my trades as I become more competent and consistent. This shouldn’t take too long.

Financial independence for me will mean giving up the part of my job I dislike, security for my children and the opportunity to give away money to local causes that I want to support.

Little did I know….

Looking at where I am now I recognise the following stages, pointed out to me in Marc Tier’s book “The Winning Investment Habits of Warren Buffet and George Soros”:

A naïve beginning

Starting out with some computer software and using a tipping service should be easy – I just have to do as I’m told. With no decisions to agonise over and every faith in my new systems it is just a question of clicking the mouse to bring in limitless wealth – after all that’s what it said on the advert.

Being sensible and cautious though, of course I start with small stakes to make sure I know what I am doing before going for the big money.

The first couple of days have all been positive, so now is the time to increase the stakes. £500 up after an hour – this is easy! But what’s happening now, that 500 is shrinking to 200, not to worry – oh dear we’re suddenly in negative territory and losing fast. I thought this was supposed to be foolproof – what do I do now? Answer – take a big hit.

Next time it comes to pulling the trigger there is some hesitation – but yesterday was just a blip, and bad luck that I chose to increase my stake on the one day when things were against me. Today will be different, so stick to the system and all will be well. Watch the quick chart on the trading platform, just some candles on a blank background – how does anyone make sense of these? They must be clever.

Oh dear….. another losing day and I realise this is just not going to happen for me.

There’s a lot I don’t know – I need to do change my tactics

I soon realise that this Forex game isn’t easy – doubt creeps in, doubt about my “expert tipster”, my software that isn’t right all the time, my broker who is out to get me, and doubt about myself – how do I know which signals are good and which to ignore? What should I do if the trade is going against me? If I bail out I watch the trade recover and move into profit, it I remain steely and stick it out I just see my losses increase.

Something has to change – what next? There is bound to be a system out there that will answer all my problems, it’s just a question of getting into the trade at the correct point after all, and there are plenty of other gurus and software packages that say they can make a complete novice rich beyond his wildest dreams.

Just a question of buying the right system then, so had better try a few….

Several $97 (and more) later it seems that some of these systems can work as long as you stick to the rules and have the confidence to ride out the losers, but sticking to rules when you don’t understand what is going on is not easy.

Maybe its just a question of finding the right indicator, but trying to learn about these just gives me brainache, and eventually I realise they don’t predict the future anyway.

Next I read that trading itself is easy but its all about psychology. What? That can’t be right, surely I just need a scalpel-sharp trading method, where does psychology fit into that?

Beginning to get the idea – I know what I’m doing if I think carefully

Eventually I realise that I am losing on trades placed following someone else, but when I make my own decisions I am making profits. The trouble is I trust the expert so use larger stakes for his trades (therefore larger losses), and don’t trust myself so user smaller stakes (therefore smaller profits) – I am right, they are wrong, but I’m still losing money.

Eventually it hits me – if I am going to make it I need to be able to rely on decisions made by me, and me alone.

So now what? An expensive mentoring course from someone I’ve never heard of who tells me they can make me into a great trader with a few transatlantic phone sessions? Books upon books that contain the key to trading successfully, but then end with a website you need to subscribe to if you want to make it? Or the long and hard (and probably even more expensive) self-taught method of trial and error?

Enter Forexmentorpro (praising the judge who chooses the winners is a sure way to put me out of the prizes but what the heck). For a modest subscription there doesn’t seem to be much to lose, so I give it a try – Revelation time and suddenly things start to fit into place. Price changes direction for a reason after all (sometimes at least!), support and resistance is key – far better to expect price reversal at these points than to hope blindly that price moves through and then heads for the stratosphere.

Now I’m watching for trading opportunities and beginning to see a pattern. However its very scary seeing price racing rapidly towards my resistance point and contemplating a trade in the opposite direction – but uncannily it stalls and then reverses, sometimes instantaneously on a spike, and sometimes after an hour or two of hesitation.

If I try and take too many trades in too many currencies I miss the opportunities – eventually I realise that advice to stick to one or two is sound.

Still taking profits too early.

Getting “in tune” with the markets – the ultimate goal

This is the next step – finally, if briefly, achieved on one glorious morning when I rode the Great British Pound up to a fib level and ema seen on 3 timeframes, exited and rode the bounce back down to major resistance. This is what I would like trading to be like – feeling confident and in control this suddenly feels easy.

The next trap is waiting for me though – filled with elation and newfound confidence I don’t want to stop for the day but take another trade in a currency I haven’t been watching closely and lose half my profit in moments.

What have I learnt?

* I will only improve if I learn by my mistakes, and that I WILL make them even if I’m warned about these very mistakes in advance.
* if I choose a good trade I can relax and allow the trade to take its course; if I take a bad one I’ll feel anxious, and eventually close the trade early just to relieve that anxiety.
* I don’t need to beat myself up if I miss an opportunity.
* even with small daily gains compounding can rapidly build my account.
* to make real profits I am going to have to take a longer term view and let trades run.

I’m not there yet but now feel that success is finally within my grasp. Using careful analysis, pre-planning and discipline (especially discipline) I know I can be successful – maybe 2010 will be the turning point.

[julianj]

I think many , if not most of us, have been/are in the situations John T describes. Good positive article.

best

Julian

[raa]

I can only concur.