You may have asked yourself, who the hell makes money on the Forex?
There are millions of people trying to give advices, and thousands of companies offering you the lowest commission fees if you trade with them. You will find thousands of books explaining different strategies on how to manage risk or how much you should invest in each trade.
The answer is quite simple. You can't make money on the Forex. You may find strategies working for a while, then another, then the probability that you end losing money is around 99,99%. Not because you will make a mistake but because YOU CANNOT PREDICT THE FUTURE! Meaning YOU CANNOT CALCULATE THE RISK YOU ARE TAKING WHEN INVESTING.
You can however calculate the PROBABILITY of risk you are taking. But if you want this risk probability to be truly efficient, YOU NEED INFINITE MONEY DURING AN INFINITE TIME PERIOD !!!
Then going back to the question, who makes money ont the forex?
The answer is: YOUR BROKER! And all the people writing book, blogging about it, selling financial letter containing advices.
The belief that your money can work for you is wrong. It will first work for those to whom you gave it and then, if they got a winning lottery ticket, it will work for you. Remember, It doesn't matter how much math you put in your trade/order, it's always gambling.
You may say that everything in life is strongly luck driven, so why not play Forex?
Well, in this case I leave you the answer.
Sunday, November 29, 2009
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