While there maybe some form of risk involved in trading, Forex trading does not necessarily have to be classified as risky.
When ever we think of risk in Forex, we should think of it as professional investors think of risk
in an investment. When professional investors (real estate, stock, commodities, etc investors)
think of risk they think of control. If their control is 10%, then their risk in the investment is
90%, which means they will not invest and vice versa. Let us check what we as traders all have
control over and what we don't have control over in Forex trading.
We have control:
(1) Over which broker to use, which in my opinion, i highly recommend true ECN broker,as i still
consider them best among the best, although there might be brokers to choose from
(2) Over how much to deposit, i strongly recommend for safety of funds
(3) Over how much leverage to use
(4) Over how much we are comfortable losing on each and every trade
(5) Over how many positions to open at a time
(6) Over what time of the day to trade
(7) Over which currency pair to trade
(8) Over what day of the week to trade
(9) Over where to live and trade
(10) Over whether to be on suit or boxer, often times i trade only with my boxers on me
(11) Over what analysis to use, either fundamental or technical analysis
(12) Over trading with a plan or not having one, i strongly recommend having a set of rules.
(13) Over following our plans or not, i recommend you follow your plan(s), because if you don't
follow it, you are not in any way better than those who neither have nor follow their plan, in fact
you are worst, because you have wasted time and some brain power in creating them
(14) Over whether you bait or not, before trading, i recommend you bait, eat and get set up, so
that your mind will be more effective and clear.
(15) Over whether to trade with our own equity or take money from investors
(16) Over when to stop trading and take vacation or just trade continuously forever without taken a break
(17) Over our self
(18) Over more and more, just too numerous to mention
Ok, now i have listed above, just a few things we have control over, as Forex traders.
Let us now check the things we don't have control and will never have control off, as traders, do
not ignore them, because of there simplicity,as they are the brutal facts.
We don't have control:
(1) Over where price direction, irrespective of the trading strategy or technique we use, the
direction price will go is all about probabilities. So all forecasts are fictions, and only becomes
factual when price finally moves one way or the other, anyway, i don't want to fall short for what
is possible for my life, please if you can actually tell for sure with all certainty where price
will go, please kindly contact me personally here with your account, as it will be
a pleasure to meet with the most powerful person on earth.
(2) Over Terms and Conditions of Forex brokers
(3) Over spread of Forex brokers, i consider it as business expenses or cost of running our
business
(4) Over which trade, we are going to win or lose, irrespective of how perfect the setup is or the
confluence of reasons backing the trade setup.
(5) Over whether we are going to win or lose 2,3,4,5,6,7,8,9,10 etc trades in a roll
(6) Over the volatility of the price, whether it trends, consolidate or remains choppy, we don't
have power to influence it in any way whatsoever, the price always does it's thing
(7) Over more and more, just too numerous to mention
OK, now i have listed above, just a few of the things we don't have control over as traders.
From the lists above, you can see for your self that we have control over the most crucial aspect
of trading, those controls is why i have shifted the risk and blame from the Forex market or brokers to the Forex trader. The Forex market is neutral from my point of view, that means it is neither safe nor risky, instead the trader is the one who is safe or risky.
From my little experience, i have come to discover that no investment(Forex included) is risky, but
rather the investor(trader), because if you observe vividly, you will notice that it is people that make all the money and it is also, people that lose all the money, people get rich and also in the same industry people become poor, there are too many factors to prove my points, if you wish to debate, then make your research and come up with your findings, for further discussions and clarification.
OK, some of you will agree with me, that is true, but what is the lesson to learn? if that is your
question, you are not alone, as i have often wondered it and have thought about it for a very long
time, with much brain power.
I made further research and discovered the difference between those who make money from those who don't in every investment industry(including Forex), those who made money invested their time and money differently from those who lost money, at the beginning of their trading and investment career.
At the very start, those who made money on a consistent basis, invested their time and money in
education and research, before investing in the market to make money, while those who lose money consistently invested their time and money in the market just to make money, they were not patient to first learn and practice before playing with real money,instead they tried to make money by trial and error, and then, if they don't make any, they quit trading, and blame the market, broker and everyone else, but not themselves.
While, those who made money consistently, also lost money at the beginning, they knew it was all
their fault and never that of brokers or anyone else, so they went through a process of trial and
error also, but not to make money but to perfect their craft.
Traders, as you can see from my explanation above that the Forex market is neutral in and of
itself, but the trader is the one who is risky or safe.
I hope you have enjoyed reading this article as much as i enjoyed composing it.
To Your Success.
Sheriff
When ever we think of risk in Forex, we should think of it as professional investors think of risk
in an investment. When professional investors (real estate, stock, commodities, etc investors)
think of risk they think of control. If their control is 10%, then their risk in the investment is
90%, which means they will not invest and vice versa. Let us check what we as traders all have
control over and what we don't have control over in Forex trading.
We have control:
(1) Over which broker to use, which in my opinion, i highly recommend true ECN broker,as i still
consider them best among the best, although there might be brokers to choose from
(2) Over how much to deposit, i strongly recommend for safety of funds
(3) Over how much leverage to use
(4) Over how much we are comfortable losing on each and every trade
(5) Over how many positions to open at a time
(6) Over what time of the day to trade
(7) Over which currency pair to trade
(8) Over what day of the week to trade
(9) Over where to live and trade
(10) Over whether to be on suit or boxer, often times i trade only with my boxers on me
(11) Over what analysis to use, either fundamental or technical analysis
(12) Over trading with a plan or not having one, i strongly recommend having a set of rules.
(13) Over following our plans or not, i recommend you follow your plan(s), because if you don't
follow it, you are not in any way better than those who neither have nor follow their plan, in fact
you are worst, because you have wasted time and some brain power in creating them
(14) Over whether you bait or not, before trading, i recommend you bait, eat and get set up, so
that your mind will be more effective and clear.
(15) Over whether to trade with our own equity or take money from investors
(16) Over when to stop trading and take vacation or just trade continuously forever without taken a break
(17) Over our self
(18) Over more and more, just too numerous to mention
Ok, now i have listed above, just a few things we have control over, as Forex traders.
Let us now check the things we don't have control and will never have control off, as traders, do
not ignore them, because of there simplicity,as they are the brutal facts.
We don't have control:
(1) Over where price direction, irrespective of the trading strategy or technique we use, the
direction price will go is all about probabilities. So all forecasts are fictions, and only becomes
factual when price finally moves one way or the other, anyway, i don't want to fall short for what
is possible for my life, please if you can actually tell for sure with all certainty where price
will go, please kindly contact me personally here with your account, as it will be
a pleasure to meet with the most powerful person on earth.
(2) Over Terms and Conditions of Forex brokers
(3) Over spread of Forex brokers, i consider it as business expenses or cost of running our
business
(4) Over which trade, we are going to win or lose, irrespective of how perfect the setup is or the
confluence of reasons backing the trade setup.
(5) Over whether we are going to win or lose 2,3,4,5,6,7,8,9,10 etc trades in a roll
(6) Over the volatility of the price, whether it trends, consolidate or remains choppy, we don't
have power to influence it in any way whatsoever, the price always does it's thing
(7) Over more and more, just too numerous to mention
OK, now i have listed above, just a few of the things we don't have control over as traders.
From the lists above, you can see for your self that we have control over the most crucial aspect
of trading, those controls is why i have shifted the risk and blame from the Forex market or brokers to the Forex trader. The Forex market is neutral from my point of view, that means it is neither safe nor risky, instead the trader is the one who is safe or risky.
From my little experience, i have come to discover that no investment(Forex included) is risky, but
rather the investor(trader), because if you observe vividly, you will notice that it is people that make all the money and it is also, people that lose all the money, people get rich and also in the same industry people become poor, there are too many factors to prove my points, if you wish to debate, then make your research and come up with your findings, for further discussions and clarification.
OK, some of you will agree with me, that is true, but what is the lesson to learn? if that is your
question, you are not alone, as i have often wondered it and have thought about it for a very long
time, with much brain power.
I made further research and discovered the difference between those who make money from those who don't in every investment industry(including Forex), those who made money invested their time and money differently from those who lost money, at the beginning of their trading and investment career.
At the very start, those who made money on a consistent basis, invested their time and money in
education and research, before investing in the market to make money, while those who lose money consistently invested their time and money in the market just to make money, they were not patient to first learn and practice before playing with real money,instead they tried to make money by trial and error, and then, if they don't make any, they quit trading, and blame the market, broker and everyone else, but not themselves.
While, those who made money consistently, also lost money at the beginning, they knew it was all
their fault and never that of brokers or anyone else, so they went through a process of trial and
error also, but not to make money but to perfect their craft.
Traders, as you can see from my explanation above that the Forex market is neutral in and of
itself, but the trader is the one who is risky or safe.
I hope you have enjoyed reading this article as much as i enjoyed composing it.
To Your Success.
Sheriff
