what are common and big errors rookies make when trading currency?
Im doing my research before i jump into this. Im interested in learning, and who better to earn from than people with practice. So, what are the errors, do and do nots of this “sport” if theres any else you’d like to throw in go ahead. thank you.
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words “Forex” and “lose” to see this is the consensus.
Forex is similar to what we call a “zero sum” game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. The net winnings of everyone combined equals zero. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the “bets” in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: “Go to Forexcrap,com/q2347.” The “q2347” is a signal to the Forexcrap site that you are being referred to them by “q2347.” If they sell something to you, “q2347” gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
Read the warnings in the links below:
What are the pros and cons of day trading?
Anyone have any experience?
How much time do you have?
Work when you want
You are your own boss
If successful, you can make a ton of money
Work wherever you want as long as you have a pc and internet connection
Very low economic barriers to entry
Unlimited growth potential
Your ego will get a stroke when you tell people that you trade for a living
You’ll learn more about your inner self than you would joining a convent
I’m sure there’s more, but those are the big ones.
Now the Cons:
The educational learning curve is very steep.
You need to have at least $30,000 that you can afford to lose as well as 6-12 months of living expenses.
Inconsistent income with no benefits.
You will lose money for at least 6-12 months, period.
Everyone you know will think you’re crazy, especially until you turn a profit which could realistically take years.
All of your personal flaws will be magnified, thrown in your face, and cost you money.
Its a very lonely job with little social interaction.
You may spend years of very hard work & study and still lose everything, can you handle that emotionally?
Just when you think you’ve got it, the markets will change and you’re system will no longer work.
You are competing against the best professionals in the world, why would you have a chance?
There are a lot of really good pros to day trading but you need to be realistic in your expectations. Though you get to set your own hours, if you want to be successful, you must be willing to work at it just like any other job.
When things go well, don’t get cocky, when things go bad, don’t get down.
The odds are that you will fail, but don’t let that discourage you from trying. Get as much education as you can and if possible, hook up with a profitable mentor to show you the ropes. And if you can’t stand to loose everything and still be sane at the end, walk away now.
Hope this helps
Why were the Europeans less successful at dominating trade relationships in China and Japan?
Both China and Japan had closed markets for trading. China set “outsiders” into small areas of trade – they refused free trade within China’s cities and allocated smaller Concessions for Europeans. In other areas around the Indian Ocean and Africa, trading ports were mostly free markets. In Japan, the system was closed to Europeans entirely.
What is the difference between Communism, Socialism and Fascism?
I know Communism & Socialism are both left-wing, Fascism is right-wing, and that Communism and Fascism are supposed to be extremely radical polar opposites. I’ve been trying to understand the differences between these three for the last half-hour now, but I just can’t seem to find a simple, un-biased answer.
No rude answers, please. Thank you!
Socialism is where the government provides goods or services at public expense. Socialism is never found in its pure state. Every modern, successful, ‘rich’ country uses some combination of socialism and capitalism, each where it works best. For instance, here in the US we are the most capitalistic country in the world, but we have socialized education, roads and bridges and other public infrastructure, fire and police protection, and dozens of other things. Just because over the years we’ve learned this is the best way to do these things. Just imagine, for instance, if we waited for private investment to build the Interstate highway system!
Communism is a particular form of socialism, you might say a ‘brand name’ of socialism. Under communism, all the ‘means of production’, i.e. Factories, farms, mines, etc., belong to ‘The People’. The government decides what will be made where, how much, when, and what it will cost, rather than to depend on the market to decide. This is sometimes called a ‘command economy’, or ‘production for use’ rather than ‘production for profit’. The USSR did this in a series of 5 year plans. Unfortunately, communism was never successful in the real world, partly because it was never tried in a country with a pre-existing tradition of democracy. So the people in these countries ended up just trading one set of tyrants for another. The government didn’t really govern in the peoples’ interest, they were really just preoccupied with holding onto their power and making themselves and their friends richer.
Fascism is a far-right form of government, basically a partnership between the govt. And powerful corporations. While communism is not really inconsistent with democracy, fascism is. It often uses religion to claim God’s blessing. It tends to be super-nationalistic, to invade other countries, claiming it’s for their own good, or that the nation has a right to defend itself. There tends to be one political party and others are destroyed by force. The government tends to reserve almost absolute power to itself, so people who disagree too openly will just ‘disappear’. It infuses every aspect of culture with protection of the government and the way of life, so kids sing songs in school praising the govt. And the leaders, and they’re taught to turn in their parents if they hear them criticizing the govt.
What were the fundamental ideas associated with mercantile theory & did they work?
What were the fundamental ideas associated with mercantile theory & did they work?
In my opinion, the fundamentals of the mercantile theory are where a nation pays for what it gets with equal trade. In other words hard money, historically Gold and Silver but most commodities work. Each Nation tries to out-produce the other. Yes it worked!
I believe the system paved the way for the industrial revolution. You know, necessity, opportunity, incentive is the Mother of invention. The system also provided the capital for the industrial revolution.
Since the system was so successful, I believe it also provided the capital for the current World Monetarist Social system we have now with all of the debt, Central bankers and Fiat Money.
As time passes, I believe the something for nothing State will subside and the whole World will revert to a much more mercantilism atmosphere where the non-producers again get little sympathy; Just my opinion.
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