I do not normally discuss or talk about my trading outside cyberspace. The longer I traded, the more I feel uncomfortable talking about it. Maybe, I am just being lazy to explain ‘what is currency trading…bla bla bla’ or maybe I am just a person who is really bad in explaining thing clearly 🙂
Conversation with a new trader
I was having a great dinner at my friend’s place. I still miss the delicious roasted turkey, baked rice, sweet potatoes, etc 🙂 One young gentleman from India mentioned that he is interested in learning Forex trading and consider taking some expensive trading courses. He saw his friends playing with Fibonacci lines, indicators, etc (wow, he knows these terms..) which is accurate 80% of the time. I kept quiet. I really did not want to get into the discussion. However, one of my friends who knows I am trading actively pointed him to me. Oh well…
In the hindsight, probably I was not too friendly to him. My ‘advice’ to him was:
“Yes, I am trading currency actively. However, I do not teach. The risk of this business is too high, so I do not encourage young people to go into that. I am in this business long enough to tell you that. 90% of retail traders failed. I am a little lucky to manage to earn some small money. But, seriously, I really don’t encourage”
Looking at his face…I know my words are not encouraging. ‘Go and try demo accounts, make sure you are able to make some money there, then only start thinking about forex trading’
What kind of advice is this? I had just given a cold blanket to a young trader wannabe. My bad.
I am not sure if I did the right thing. He might probably go for some expensive trading courses and start with his friend’s 80% accuracy system. That’s not my problem. He might even think I am being arrogant by not sharing anything with him. At least, I did not commit a sin that by telling him, ‘forex is a wonderful 24-hour market, where you can make money anytime, anywhere you want’.
Well…I think I did the right thing after all.
The lesson here? Don’t ask Gav out for dinner and talk about trading.
This blog post was first written back in June 8, 2009. I review it and repost it again as I thought it might be useful to new traders.
If you really keen to learn trading, check out my posts in the Back to Basics of Trading series.
Some things people have to learn for themselves, no matter what you tell them.
I usually have a fixed reply to similar situations. I have a list of 4 books I recommend, those are the top books out of the 100+ I’ve read. Really worth the time and investment. So I tell them if they get those 4 books, read all of them, and still have questions or need help then they can ask me again and I’ll help further. Needless to say, I never hear back from any of them 🙂
You did fine.
Can you please give the names of the 4 books you recommend?
I don’t think you’re sending the wrong message at all. It’s too easy to be blinded by the possible profits and 80% win rate, etc. Plus, there’s too many hawkers out there promising big returns. So it benefited him to hear a realistic view to trading.
I don’t think you’re sending the wrong message at all. It’s too easy to be blinded by the possible profits and 80% win rate, etc. Plus, there’s too many hawkers out there promising big returns. So it benefited him to hear a realistic view to trading.
@Andre : I guess, he might just treat my message as BS 🙂 Anyway, I wish him good luck.
Btw, how’s weather in Singapore? Rainy season?
@Andre : I guess, he might just treat my message as BS 🙂 Anyway, I wish him good luck.
Btw, how’s weather in Singapore? Rainy season?
Some things people have to learn for themselves, no matter what you tell them.
I usually have a fixed reply to similar situations. I have a list of 4 books I recommend, those are the top books out of the 100+ I’ve read. Really worth the time and investment. So I tell them if they get those 4 books, read all of them, and still have questions or need help then they can ask me again and I’ll help further. Needless to say, I never hear back from any of them 🙂
You did fine.
Hello brother,
Dun like that leh. We all are once like that. 🙂
Anyway, I think you did good by telling him about the cruelty of the forex market.
Maybe you should add on that 80% win rate based on the system, plus emotions. I guess that rate will not apply.
Enjoy your winter. Singapore is damn hot now.
Dennis
Hello brother,
Dun like that leh. We all are once like that. 🙂
Anyway, I think you did good by telling him about the cruelty of the forex market.
Maybe you should add on that 80% win rate based on the system, plus emotions. I guess that rate will not apply.
Enjoy your winter. Singapore is damn hot now.
Dennis
@Eyal: I love that idea. I probably should prepare my list of 4 books as well.:)
@Eyal: I love that idea. I probably should prepare my list of 4 books as well.:)
@Dennis : Yo bro, how are things going? Hope everything is going well with you. I love and enjoy winter!!
Yeah, we were once in that situation.:-) I think it is better to stop the unrealistic dream of new trader. After all, trading is really not an easy business.
@Dennis : Yo bro, how are things going? Hope everything is going well with you. I love and enjoy winter!!
Yeah, we were once in that situation.:-) I think it is better to stop the unrealistic dream of new trader. After all, trading is really not an easy business.
Singapore is too hot, Gav! Not enough rain. 🙂
Singapore is too hot, Gav! Not enough rain. 🙂
Do you think that forex trading is gambling?
Do you think that forex trading is gambling?
Mate, don’t waste your time on this kinda debate. Start trading well.
Mate, don’t waste your time on this kinda debate. Start trading well.
I wish someone gave me that warning when I first started. Would have saved me a ton, but alas I learned the hard way.
Nice reflections.
An interesting post and subsequent comments. From time to time I am asked my advice on how to become successful as a trader (for the record I’m still trying to work this out for myself). My answers are always pretty much the same. “Find a strategy and method that works for you and stick with it. ” – Not great advice right! – But all those that are reading this post will know that there is no quick solution. Trading is 90% in the mind, there is no amount of advice that replaces the experience that enables you to understand this.
An interesting post and subsequent comments. From time to time I am asked my advice on how to become successful as a trader (for the record I’m still trying to work this out for myself). My answers are always pretty much the same. “Find a strategy and method that works for you and stick with it. ” – Not great advice right! – But all those that are reading this post will know that there is no quick solution. Trading is 90% in the mind, there is no amount of advice that replaces the experience that enables you to understand this.
I agree with AticManTrader 100%.
I believe I have a proven system as I have many more wins than losses. I post my trades in my websites. So if you do not believe, please take a look.
965 pips profit for this month.
I agree with AticManTrader 100%.
I believe I have a proven system as I have many more wins than losses. I post my trades in my websites. So if you do not believe, please take a look.
965 pips profit for this month.
@AtticManTrader : I reckon, not giving advice is the best advice for newbies.
@Brendan: Good luck and congrats on the pips number.
@AtticManTrader : I reckon, not giving advice is the best advice for newbies.
@Brendan: Good luck and congrats on the pips number.
I wish someone gave me that warning when I first started. Would have saved me a ton, but alas I learned the hard way.
Nice reflections.