Pursuing a Trading Online Career

(deThe dream of a trading online career can become quite elusive and very costly, because of all the misleading information there is out there. It takes courage.

A Trading Online Career Takes Unbelievable Courage to Develop

Many people pursue a trading online career, yet most end up failing sooner or later because they cannot handle complexity and stress. And sometimes failure actually comes after having made millions of dollars trading, the trader simply loses it all back to the market. To develop a serious trading online career, the pursuing trader must be absolutely strategic in their planning, and even ruthless while trading if necessary. They must be willing to break many rules too. Trading is very similar to military academy and fighting, so as to want to win a war. The problem is that if the general sticks to military academy rules, he will be predictable to the enemy and he will have no chance of winning the war. The forex market for example is indeed a battlefield of the financial markets, and institutional traders do all kinds of deceptive trades so as to fool traders of other competing investment banks. Deception tactics involve misleading announcements, to the effect of ‘we believe this or that currency will do such and such’. While in fact they are planning to trade in the opposite direction. Other tactics are about direct misleading action, so that actual trades are purposely opened in the wrong direction, so as to leak out misleading information. There is no collective conspiracy in the markets, by the institutional traders against small retail traders, it’s just that the bankers themselves are always acting against each other. So there goes the myth of the so called tip that you as a retail trader must follow the smart money. Nobody knows where the smart money is! If it was possible to detect it, then it wouldn’t be smart money at all. These deception tactics are often reflected on the charts, and do confuse even institutional traders, it should not be a wonder then why retail traders, and beginner traders are fooled too. So, in a nutshell there is no smart money you can detect and follow and build your trading career upon. Even the COT report is totally misleading, and cannot predict market direction any better than a coin flip.

How to Win the War of Your Trading Online Career

In your own trading online career you are bound to face the same challenges as other traders have faced in the past. Failure and failure and more failure. And you cannot win consistently because you are afraid to break established trading rules, or still believe that detecting smart money is the way to go. To really trade forex online profitably, you should take existing trading strategies and modify them so as to fit your personality. Feeling comfortable is important. Then you can bend and break many trading rules. One such old rule is about risk control and states that you should never add to a losing trade. This rule is based on the idea that new traders are not willing to take a loss, and just keep their losses open. And it is a fact, this is really what happens. But if your trading strategy is better, you can increase profitability dramatically by breaking this rule. Commodity traders and commodity currency traders do trade through CFDs and have good insights into the commodities in question, usually fundamental insights. They add to losing trades very often, and they know that the fundamental direction will prevail. It’s all a matter of maintaining sufficient margins in their CFD accounts, but CFDs are affordable enough in most cases. Going through a CFD trading guide can help you understand margin requirements, and how far can you go adding to losing trades, or hedging losing trades as well. The old saying is true, those who dare win, and in the financial markets you have to take calculated risks, and dare to break many rules. It is something the market collectively doesn’t expect you to do, because it seems to defy belief. And just like in war battles, conventional wisdom and military academy rules never worked in winning them, certainly not down at the critical point.