Many new forex traders get intimidated by trading as they think it’s a place only for high rollers or geeks but the exact opposite is true anyone can learn to trade and being to clever is actually a big disadvantage…
In forex trading you don’t get rewarded for being clever, working hard or being intelligent – you make money by being right, with your forex trading signal.
A simple currency trading system works best, as it’s likely to be robust and have fewer elements to break than a complicated one.
Many traders spend ages creating highly complex, clever trading systems, which collapse in real time trading.
Why Being Clever with Your Forex Trading System Is NOT a Good Idea
The application of science doesn’t work, as markets are not moving to a scientific theory, trading currencies is simply an odds based game.
Advances in science have helped mankind – but the markets remain as they have always been – an area where science and cleverness won’t help.
This can be proved by the fact that 50 years ago 95% of traders lost and today the ratio remains the same, despite all the advances in forecasting we have seen.
Another reason that intelligence and being clever doesn’t help is, if you come to the market with these traits you bring an ego with you.
Why Ego’s Destroy Equity
I have seen many traders and Jake Bernstein referred to them as educated fools and he was right. They think because their clever, they deserve success and can’t take failure – it wounds and bruises their ego.
When the market makes these traders look stupid (it does this to everyone) their egos can’t take it; they run losses, over trade and show a complete lack of discipline.
On the other hand the humble trader with his simple system who realizes he has to lose to win, can apply his currency trading system with discipline and enjoy long term currency trading success.
Why ANYONE Can Win
If you want a good illustration of how anyone can learn to trade, take this famous experiment:
In the 1980s trading legend Richard Dennis, took a group of people and taught them to trade and many of them were everyday Joe’s.
For example, one was a security guard, one a kid from school and two card players. None of them had a college education – but they were part of a group, he taught in 14 days and they went on to make Dennis $100 million in 4 years and become trading legends!
Now I am not inferring that you will make as much as the above people – but the opportunity is there and Dennis proved it.
What did he teach them?
A simple forex trading system (so simple anyone could learn it) and then he taught them to combine this with rigid discipline.
Keep It Simple
A trading system can be simple – but you need to apply it with rigid discipline. You need to take a number of small losses and run big profits when they come.
This doesn’t mean trying to be clever – you have to be humble, focused and simply stick to your plan.
My Experience
When I was a broker, the thing that struck me was the real nerds and geeks who traded with us never won anything and cried like babies when they lost. On the other hand the traders who made money with us were average guys and many were women.
The most successful one was a lady farmer. 81 years of age, she consistently made 120% + annualized gains. A sweet, humble lady, she would freely admit she had no proper education but she made a lot of money and that’s what you’re judged by in forex trading.
So if you think the forex market is only for geek’s nerds and college educated people think again ANYONE can do it and not being clever is actually in many instances, an advantage!