Just say no to the Gimmicks

I was flipping through the channels late last night between trades an came across one of those infomercials about becoming a Forex trader (i actually thought all these guys were gone). I sat and listened for a while and really started getting irritated with what I was hearing. There were all these extremely successful traders giving their testimonials how Forex and this "Guru" saved their lives. These testimonials came from people that had never traded Forex before and most were your typical blue collar worker with a couple business professionals and one homeless dude (yep, you heard that right). All told how they were just not satisfied with what they had and wanted something more. Can't fault anyone for wanting to improve their life, right? Especially the homeless dude. The thing is none of these people had any trading experience and all were wildly successful from trading the Forex market. Specifically, trading this Guru's holy grail system. Just do what I say, he said, and you'll succeed.

I remember back in the late 90's it seemed like our TV's were controlled by these infomercials and stories of people like Joe the Plumber types making huge fortunes investing in Real Estate, Options, Stocks, Forex and other stuff. These were on so often that I sort of got use to them and would move on to the next channel if I didn't want to hear it. But this one sort of bugged me. Maybe because of how long I've been trading now and how much education and time I've put into this.

There was this farmer leaning up against a fence in what looked like a corn field. He was telling his story about investing in the Forex market using this Guru's holy grail system (no, they didn't really call it that...I did) and making more money in one month than he made all year plowing and farming his fields. Then there was this teacher that was able to walk away from her teaching job and now makes more money in a week then she did teaching. And on and on.

What bugged me wasn't that these people had begun trading and became successful, they should be congratulated for their successes. What bothered me was the advertised trading system. Just one phone call away from success. Call us now and give us your money and you'll be free. If you don't call us now I can't help you....What a bunch of crap...oops. It was all tauted as the easiest thing these people had ever done. The Farmer would get up in the morning and pour himself a cup of coffee and go to his computer and place his trades. He would come back later that day after finishing his chores and anything else he had planned for that day, then collect his profits. That easy.

If there is one thing I have learned about Forex trading is that it is not easy. Oh sure, I've said it in the past that people make it harder then it needs to be. But it still isn't easy. As traders we need to all ask ourselves some questions and give honest thought out answers. Do I fully understand the investment? Am I fully aware of the degree of risk? Does Forex fit my investment objectives? Am I honestly prepared to invest the necessary time, money, and energy that is required to make intelligent decisions about my trades?

If you can't or won't answer these questions honestly and intelligently, and you're not willing to invest the time, money, and energy in educating yourself about this market, well then, don't bother. Save your money or I, and the other traders that have and do invest in the time and education, will take it. I promise you that.

What these Guru's always seem to leave out is the real education involved and the losing trades that DO happen. You will not have 100% winning trades. You will have losing trades. It's a fact of trading. Successful traders know that losing money is going to happen and that keeping to your disciplined trading plan is essential to achieving success as a trader.

Tell me something, if all these Guru's selling these red and green arrows and automatic trading robots and fancy EA's really worked as well as they claim, why ain't they all multi-millionaires? Why is it that it's only the people we see on late night TV and the spammers telling us about the next great trading robot that seem to be making money with this crap. I know quite a few very successful traders but not a single one that even wants to admit ever trying this crap. And better yet, why is it none of these Guru's are ever willing to share their live trades. I don't know, I'm just saying. It seems a bit suspect to me. There are some things out there that I believe can give a trader a bit of an edge but nothing takes the place of the trader themself and the hard work that goes into the education of becoming a great trader. Mastering this market will never come from following arrows and using robots. It will only come from an investment in time and education.

These gimmick pushers know that people want a quick fix. The sad fact is most people are not willing to invest the time and money into educating themselves. They want it now. So a robot or just following some arrows sounds good. The gimmick pushers know this and it seems like a new gimmick or robot EA shows itself every week.

You gotta know that in this market you will have losing trades. It's a fact and part of trading. You have to know your tendencies. Does losing money keep you awake at night? Do you make trading or investing decisions quickly and based on the latest trend or tip from a forum or friend? Do you get emotional at the financial news? Answering yes may not be a bad thing but you might want to consider more conservative investments then the Forex market.

Even if you can stay calm and focused, being successful in the Forex market also requires active study and consistent attention to the market. Sorry, but this does mean educating yourself about Forex. There are some great sites on the web to get a person started and some even better ones you pay for. Be careful though, I have found there to be more crappy ones then good ones. A lot of them just want your money. There are some great books as well. But most of the stuff worth much will require you to spend a dollar or two.

The Forex market is an incredibly dynamic market with huge opportunities to make a lot of money and to grow as a person. It can also lead to huge losses in a very short period of time. The Forex market is a high risk investment suited only for those who can absorb the losses that come with the market. It's not a place to stash your retirement.

So, for those willing to expend the time, money and energy into the education and can understand the risk involved I say go for it and and have fun. But be cautious of all the so called guru's, gimmick pushers, and too good to be true testimonials bragging about the holy grail they have found to make millions trading. You'll be better off mixing a good grey goose martini, sparking a nice Cuban and kicking back in a lounge and watching the fish jump.