The effects of this misconception are the same everywhere: 90–95 percent of traders lose their first deposits after reading books like Bill Williams, Alexander Elder, Thomas Demark, J. Schwager, and others.
After losing their initial deposit, traders dive back into researching deposit promotion, suffering losses on their second, third, and following deposits as a result. So that no trader makes the same mistakes as his forerunners, I will attempt to explain where the aforesaid regularity comes from in the paragraphs that follow.
WHY? Because if these figures were made public, the number of people looking to make quick money on the global forex market would drastically decrease. If not, banks would not be silent for marketing purposes. They wouldn’t remain silent either if the number of losers was at least a few percentage points lower than 90%. Any advertisement will guarantee customer attraction by quoting profitable maxima and non-profitable minima. This is a worldwide practice that has always been, is currently, and always will be.
As a result, traders can expect a maximum of 10% Forex winnings. They are the ones who fully grasped the fundamental principles of the Forex market and achieved consistent daily earnings in quantities comparable to those acquired by others over the course of years or even their entire lives.
This book is therefore aimed for people who want to understand the rules of the forex market.
Let’s first examine the causes and methods used by the outstanding 90% of traders who lose money in order to have an idea of how the 5–10% of successful traders make profits. To say nothing of 95 or 98 percent, the 90 percent figure is alarming. It happens despite the fact that there are hundreds of basic books on the subject that have been produced by authors who have achieved capitals stated using more than 7-digit numbers (G. Soros, B. Williams, A. Elder, T. Demark).
As a Result, the Minimum of 90% of Intelligent, Well-Read, and Knowledgeable People Are:
- Examine the history of the truly outstanding traders;
- Establish accounts with banks and Forex brokers, begin trading, and…
- Loose money until the end of the route!
WHERE IS THE LOGIC, TOO? The solution naturally comes to mind… If a study’s findings are so oppressive, there must be something seriously wrong with the literature—something that is acknowledged throughout the world, where deposit-killing numbers are just as depressing as they are in our nation.
STRANGE? No, it is more normal than weird because of the following:
- Not everyone who is a great trader is also a great teacher.
- Countless guidelines developed by academics 10–40 years ago are no longer relevant because of changes in the forex market.
- Even within the framework of the then, the scholars did not divulge all of the mysteries.
FOREX, so by this point, their recommendations and counsel come across as either naive or out of date.
As a result, if one’s suggestions and counsel cause 90% of market participants to lose money in each nation where one’s books have previously been published and have received countless accolades from the press, THAT IS WHEN ONE IS NOT A TEACHER.
The distinction between such editions and beginner’s manuals should be clear.
For example, G. Kasparov is not in the habit of penning instructional books for chess beginners because other people could do it more effectively, without in any way diminishing Kasparov’s skill as a player. His suggestions and counsel are also sure to be of more interest to a select group of grand masters than to others who are just picking up the game.
Actually, Kasparov should only be admired for resisting the need to get rich quick, for his reputation in the chess community, and for his creation of instructional books for beginners.
Contrarily, everyone considers themselves a teacher at Forex for some reason, which reality leads to millions of educated individuals worldwide leaving the stock market disillusioned and unhappy with an inferiority complex lifelong pursuit.
Because the gains are so small compared to the losses, they are left wondering if everything is a scam or not.
So, what purpose does writing in this manner serve? A theory may typically be overly complex, but it MUST BE expressed in language that is straightforward, intelligible, and clear.
When you have the time, feel free to try reading the aforementioned book. The Soros reflexivity theory of the countries’ cyclical development can be succinctly stated in two sentences as follows:
- A country is given credits after being freed from the totalitarian yoke, which causes the economy to thrive and flourish quickly.
- A nation’s economy experiences a natural recession as soon as the aforementioned credits are due to be repaid.
Is It Still Challenging?
The following query can be directed at a schoolboy (let alone an American investor): When should shares of those nations’ enterprises be purchased and when are they to be profitably sold in order to achieve maximum profit? What will happen if it is too late to sell shares that are about to see a sharp price increase?
The Soros argument, which had been put up earlier, was fully supported in August 1998 by the dreadful customs that had been formed in the Asian and Pacific region and later in Russia.
Another query is how unintelligible should Soros have been for his thesis to be understood by a select few.
It is not worthwhile to recount the second section of the book. Reading the original text instead of my annotation is definitely going to be more educational.
The thesis is penetrated by Soros’s strategy: invest long on what will likely experience price growth in the near future with a 100% likelihood and “take out” Your money and earnings before the companies experience a crisis, so assisting their bankruptcy.
Explain the complexity of deposit promotion to my pupils in this way, making sure they understand my reasoning. Forex is fundamentally reduced to one very simple truth: at a certain point, one should not be late with going long or short on a currency with “tertium non datum,” notwithstanding its own complexity (news, TA, corrective actions, etc.).