Thread: What is Wrong With The FOREX Market?

The answer to "What is wrong with the FOREX Market?" may be more dependent upon our experience and knowledge of the Market than the Market itself. I used to think that a lot of things were wrong with the FOREX Market, but my friend who is also a trader kept disagreeing with the things I said and made me think and believe differently.

Yes it is true that the Market is definitely manipulated at times by the Market Makers. Why would that not be the case? They are the ones who created it and they will use it to suit their needs. But it's a mistake to think that you cant make money from it. The problem is that we really dont have the experience and the knowledge required to take advantage of the opportunities it presents.

Because we did not study FOREX in school, we subconsciously think that it should be a piece of cake when we get into it, and that it should just spit out profits when we want it to. The real truth is that the market is a lot more complex and much bigger than we are. It is like a massive science project that has to be figured out bit by bit. If you take the time, and apply the patience you will be able to figure it out well enough to make very good money. You just cant take one little part of its complexities and feel that now you have it and run with that to the bank. You have to try and get a sum total of as many of its parts as you can.

Unless you are a clairvoyant who is always 100% right, you will never make every trade a profitable one. But if you approach the FOREX Market armed with more than one aspect of its many variations you will quite likely do very well in it. You must combine your knowledge of candlesticks with what to do when a currency pair hit a New Low. You must know what to do when a currency pair hit a New High. You must know what to do when the sessions have changed. In many cases the direction of the Market will change also. You have to realize that the Market does not have a mechanical mind and that the human minds that run have a logical and common sense approach that they bring to the Market.

You have to enter the Market like a soldier armed for battle. Every piece of his armor and weapon has a purpose and is critical to his survival. He has to be aware of every inch of his surroundings and must be very familiar with the fighting tactics of the enemy. He has to know when to make a stealth advance and when to stay in the battle to gain the victory.

With some of his enemies a quick flash of the sword and the fight is over. With others the fight is prolonged because the enemy is a bit stronger than he anticipated, or he sees that there is more spoil to take if he sticks around a bit longer. He has to learn and use the shortest avenue to a kill, be concise and thorough, and then make a quick exit so he can live to fight another day. He must learn to keep his spoils so he stays fed, and strong for the next fight. He has to know which of his companions he can pair up with for the best fighting results.

He must at times depend solely on the firing of his weapons, and at times trust his gut instincts. Both approaches are necessary and quite relevant at times. Sometimes he must lay in wait for the enemy because rushing in he will get himself killed. But he must also not be hesitant when the enemy is right in front of and is ready to be taken. On the battlefield there is nothing as stupid and missing the opportunity to kill an enemy soldier when the time is ripe but failing to do so and then starting the fight when the enemy is more unmanageable.

The FOREX Market has not been too different for me than what I have described above. Over the past three years I have been traversing its wide and complex avenues. I have been quick to pick up much of its mentality. Some I have put to good use almost immediately, and some I have hesitated to use because of fear they would not work. In the end I was the one who made the big mistakes. The market is logical and productive when properly understood.

I've had to go at it with more than one battle plan in mind. I've had to use several of my weapons all at once. I've had to use my candlesticks, my little bit of fundamental analysis, a little bit of my technical analysis, my Fibonacci, my gut instincts, and taking action when I should instead of sitting before my computer frozen in fear and apprehension.

It also has not hurted me to have learned a system that my friend taught me. Now I can make very calculated and more confident decisions which have been bringing me consistent gains, and will continue to do so as long as I stick to the system and apply it wisely. I have discovered that the FOREX Market can make anyone money if they will take time to learn it properly, and apply the knowledge in a consistent and sensible manner.

Can I share my system? NO I cant! I made a promise not to, and I will not break that promise even for a million dollars. What do I say to you? Keep going. You will one day learn something which will make all the difference for you. As Pat Robertson said "The world will only give its treasures to those who persevere".

Skalamanga.

From my personal experience, learning the tip from the seasoned traders is a must, you would progress a lot. I found forex market could apply the knowledge into real world while trading.