Is foreign exchange trading really that simple?

Author: Tarlan (Russia), translated by Huang Mei
Publisher:
Publish Date: 2006-05-01
Features: A forex trader (that's you) is extremely similar to a car driving enthusiast. The laws and principles of price movement are akin to driving rules to an almost ridiculous degree. Take the car itself as an example (of course, new ones), small like a toy, yet surprisingly good! Under the exquisite hood lies an engine packed with electronic components. The same goes for finance: behind simple definitions lie countless details, complex operations, and procedures. We can drive without understanding the principles of car construction—this is our advantage. However, in the of a trader (studying this will make you smart and powerful), the main thing is to know what it's all about, and not to be intimidated by a long list of definitions. There are no speed limits or traffic police on the roads of the forex kingdom. You can accelerate to full throttle—zoom! But don’t relax, the market itself will impose merciless penalties on anyone who violates its financial discipline. This isn’t a matter of a few thousand dollars. Therefore, we must carefully study the "rules of forex movement," "regulatory bodies," and other important concepts (such as traffic jams and detours). Everyone has their own way of driving. Some are seasoned drivers, comfortable behind the wheel; others are new to the road, cautious at every turn. Some even enjoy reckless speeding on the highway. Of course, these people are more likely to get into accidents, but let them be—everyone has their own way. In any case, when you start driving on the forex market, you must proceed with caution: be a careful and clear-headed citizen. "Stillness leads to distance"—this is the motto of this section. Later, of course, you will need even more space and opportunities. By then, you can adopt a more proactive stance in life, and money will jingle in your pockets. Perhaps you will become one of those rare stars who appear only once in a century. If so, we will be honored, as we have also made our small contribution here.