When I started to venture into the world of forex, there are a few local traders that I knew. They are either seasoned or newbie like me back then but now it seems that most of them are gone. They are no longer in the land of forex and they are doing something else.
It seems the saying is true. Most people will not survive the 1st 6 months in forex. Those who survive the 1st 6 months will have a tough 2 years. Some people lasted longer but they no longer trade. They have become and IB living on commission. One person whom I know doing that is henrycarol. Before he was an IB for Northfinance, now he is an IB for a different broker. Personally I do not think he trade anymore. This is because the commission is too small compared to profit in forex. If you cannot profit, then your option is taking commission on volume traded by others.
I am heading to my 3rd year in forex. I survived this long by controlling my loss. You cannot win all the time in forex but make sure when you lose, you loss is small. When you win, make sure its big. There will come a time when you have series of losses but those losses can easily be recovered with one big win.
At the moment I am managing an account. Its a loss account where the owner already given up hope. It has a very small margin. Apart from that there are 3 more offers. All of it with the amount of over RM20,000.00. All these offers came from people who have actually watch me trade. I now know that account statement means very little. People wants to see how you trade and they want to see you are winning in front of them.
At the moment my trade system have reached it 3rd revision. I have 2 students at the moment but unfortunately for newbie, the amount of information they have to digest is too much. They easily get lost in it. The hardest part is not the amount of information but following orders. Any system in the world will have specific instruction. It seems that humans are very bad at following instructions. It is in our nature. No matter how simple my system is, there will always be times when people do not follow the rules and human like to blame others on their mistakes.
Enough of that. My last signal actually survive the spike of the rate cut. If anyone following that, you will be in profit or break even. The rest of the pair didnt survive the spike.
At the moment I am holding 2 post that is:
1. Short EURUSD @ 1.2830
2. Short AUDUSD @ 0.6670
One of my students followed me during the trade late friday. Hopefully we will see a trend continuation and the above trade will generate hundreds of pip if not thousand next week. Good luck to all of you. Keep on learning and someday you will be there.
WHAT HAPPENED TO TRADERS I KNOW?
Saturday, November 8, 2008
