|
Modernism and traditionalism as well as the
various trading styles and methodologies found within the
markets are things that every trader should understand and
appreciate. Modernism (as I use the term in this book) is
related to proprietary systems used for trading, in contrast to
traditionalism, which is based on traditional approaches used in
trading smaller markets within the trading industry.
I hope you will understand there is a difference between modern
and traditional systems and will explore the difference with an
open mind. In general, I’ve found that learning something about
the history of the forex, as well as a few of the different
types of traditional signals, trading styles, and other concepts
(information that is available to everyone for free or for a
fee) helps you see the significance of trading the larger forex
market while using proprietary tools instead of traditional
software. This requires just a little personal research. After
you learn the basics from this book, and after you develop a
personal awareness about the largest financial industry in the
world, your eyes should be open to the possibility of becoming a
professional trader or, if you’re already trading, to becoming a
better trader.
I must give credit to those who early on forged the way with
research and development, often by trial and error. These
traditionalists made it possible for everyone to enjoy the
opportunity that the forex market presents today. Experimenting
and seeking the secrets of success should never be ignored. Many
traditional traders from Wall Street are the unsung heroes of
the trading industry—as well as those who filed for bankruptcy
along the way while looking to find the secret of perfected
entries, stops, and limits.
In addition, there are others who had large amounts of money,
which gave them
the power to stay in the market: They made fortunes without much
focus on either the technical approach or the fundamental
approach to the markets. George Soros stated in one of his books
that to be successful in the forex, a trader must have
“sustaining power,” meaning enough money to survive market
swings; many traditional traders became swing traders while not
using stops. When the market moved against these traders, their
hope was that the market would eventually come back to profits;
and often it did.
However, when losses did occur, the damage to margins was often
so severe that some traders had to quit the industry.
With the advancement of technology and continued research into
the market recently,
Mr. Soros’s theory may not be true any longer. With a little
research, you may find
that some very famous traders and authors have either filed for
bankruptcy or left the market with ongoing failures because they
would not consider evaluating new, proven concepts and
methodologies that have been developed.
There are many newly developed trading procedures and strategies
available now
in the marketplace. Traders new to the industry must remember
that success comes only with effort.
|
 |
Many market explorers, research technicians,
and traders have quit (or even passed away) just before success
might have been reached. When I began trading, I reminded myself
of how Thomas Edison struggled in the beginning of his most
successful venture. When developing the lightbulb, he continued
to forge forward, at great expense, attempting more than 1,000
(some say 10,000) time-consuming experiments before achieving
success. I also thought of the cheetah, which has been tracked
at running nearly 80 miles per hour but nevertheless has to make
an average of 100 attempts to kill one antelope for dinner. One
success out of an average 100 attempts would discourage any new
trader if this were the case in the market!
Many beginning traders experience losses just
before achieving success, and most will give up trading with a
bad attitude toward the industry or, worse yet, toward their
mentor. I have met traders who believe that their failure means
that someone else must be to blame, yet these same traders will
always accept success and forget their guiding mentors. If you
cannot be responsible for your actions in the market, you should
never trade the forex. Jim Rohn, a famous speaker and author,
once said that most issues regarding failure are found between
the ears.
I would suggest you keep an open mind to traditional trading
styles, but also be open to the new systems and procedures that
are developed every year to accommodate market conditions that
seem to be changing constantly as the industry grows. Successful
trading requires ongoing research and development, which only a
few companies in the world are willing to share with the average
everyday trader. If you’re new to the forex industry, it would
be a good idea for you to consider locating a mentorship company
that has a proven track record of success for personalized help
as well as ongoing research. If you’re considering a mentor
program, keep in mind that it is also helpful to have a
development program in place to help you with support after you
complete your initial mentoring session. If you are a beginning
trader who is self-trained in the forex—and even if you have
previous trading experience in traditional markets (e.g.,
futures, stocks,
etc.)—your losses in the forex will most likely far outweigh the
cost you would have paid for professional help.
“Some are meant to play the game, and then there are those who
must teach.” Can this be true? What’s wrong with learning from a
mentor who actually trades full-time for a living?
Unfortunately, most mentors do not trade successfully, but those
who do are more than willing to be certified properly. A
certified mentor is more than willing to provide ongoing copies
of his or her personal trading history as proof to a
nonprejudiced third-party mediation group; as an alternate
suggestion, mentors could submit instant
notification to their traders as well as to the mediation group
of personal live trade entries as they happen for a limited time
period. This type of proof would justify the mentor’s or
author’s credibility.
.
|
