Very interesting remarks about what an experienced trader, split_unit, has found in the forex market:
10 years in after discovering that trading is my passion, getting an MSc in Finance, becoming a CFA chart holder and getting a job on the buy side, I somehow revisited forex factory and found this thread. I have to admit, some of the stuff written here is hilarious. What I have found out to be the truth is that:
1. The FX market is by far and away the toughest market to make money in consistently. Just because a few brokers (sharks) made it sound like it was easy to make money doesn't mean that it is. The FX market is unregulated and hence, you get these shenanigans.
2. Everyone can make money in the markets, you just have to know your niche, be good at it and master it. Forex isn't the only market out there! Look at stocks and futures and ETF's. They trend and mean revert too! The reasons why they do so is almost always clear!
3. You won't know your niche if you don't try other markets/strategies.
4. Some of the guys over here did like a million trades a year for 10 years without learning anything! In finance and unlike other fields, 10000 hours of deliberate practice doesn't equal success. If you are allocating energy into something that doesn't work, move on.
5. Technical analysis is the biggest pool for sunk costs. You won't ever become better by staring at a one minute chart for 5 years without knowing why prices move the way they do (fundamental analysis).
6. Forex forums like this one exist for the sharks mentioned in point 1. Just look at the adds everywhere.
7. If you want to learn how to make money, try to learn from the best. Not some dude who says he can make money on Forex Factory. My personal favourites are Warren Buffett (Value Investing), Bill Miller (Portfolio Management and Multi-Asset Investing), Howard Marks (Investment Philosophy). Jack Schwager Market Wizards books.
8. Demo or paper trading only works in the imaginary world. They say that there is no difference between theory and practice but in practice there is. Trade real money with the smallest amount that you are willing to lose. You won't ever become successful paper trading. Be brave and only bet what you are willing to lose.
9. There are no shortcuts, no magic formulas or a holy grail. The moment you identify what looks like a holy grail, you have to realize that it is temporary. Successful traders find holy grail(s) because they are equipped with knowledge and experience. If you don't have either, you won't succeed.
10. Professional fund managers don't need fancy Bloomberg Terminals, USD 500 a month charting tools or news feeds that cost USD 1000 a month. They can make money in any environment because they understand it. I know a fund manager who had an AUM of USD 500 million, and he relied on Google. In case you think I was bluffing, check out this guy called Warren Buffett, check whether he has a PC and check his net worth.
Quoted from: https://www.forexfactory.com/showthr...8#post11437698
10 years in after discovering that trading is my passion, getting an MSc in Finance, becoming a CFA chart holder and getting a job on the buy side, I somehow revisited forex factory and found this thread. I have to admit, some of the stuff written here is hilarious. What I have found out to be the truth is that:
1. The FX market is by far and away the toughest market to make money in consistently. Just because a few brokers (sharks) made it sound like it was easy to make money doesn't mean that it is. The FX market is unregulated and hence, you get these shenanigans.
2. Everyone can make money in the markets, you just have to know your niche, be good at it and master it. Forex isn't the only market out there! Look at stocks and futures and ETF's. They trend and mean revert too! The reasons why they do so is almost always clear!
3. You won't know your niche if you don't try other markets/strategies.
4. Some of the guys over here did like a million trades a year for 10 years without learning anything! In finance and unlike other fields, 10000 hours of deliberate practice doesn't equal success. If you are allocating energy into something that doesn't work, move on.
5. Technical analysis is the biggest pool for sunk costs. You won't ever become better by staring at a one minute chart for 5 years without knowing why prices move the way they do (fundamental analysis).
6. Forex forums like this one exist for the sharks mentioned in point 1. Just look at the adds everywhere.
7. If you want to learn how to make money, try to learn from the best. Not some dude who says he can make money on Forex Factory. My personal favourites are Warren Buffett (Value Investing), Bill Miller (Portfolio Management and Multi-Asset Investing), Howard Marks (Investment Philosophy). Jack Schwager Market Wizards books.
8. Demo or paper trading only works in the imaginary world. They say that there is no difference between theory and practice but in practice there is. Trade real money with the smallest amount that you are willing to lose. You won't ever become successful paper trading. Be brave and only bet what you are willing to lose.
9. There are no shortcuts, no magic formulas or a holy grail. The moment you identify what looks like a holy grail, you have to realize that it is temporary. Successful traders find holy grail(s) because they are equipped with knowledge and experience. If you don't have either, you won't succeed.
10. Professional fund managers don't need fancy Bloomberg Terminals, USD 500 a month charting tools or news feeds that cost USD 1000 a month. They can make money in any environment because they understand it. I know a fund manager who had an AUM of USD 500 million, and he relied on Google. In case you think I was bluffing, check out this guy called Warren Buffett, check whether he has a PC and check his net worth.
Quoted from: https://www.forexfactory.com/showthr...8#post11437698
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