Tuesday, December 4, 2007

Welcome Forex Traders

Welcome traders, to this new forex trading blog.  It is designed for forex traders who are serious about getting positive returns from the forex markets.  And are willing to do what it takes to take the edges available and execute them, over and over.

While most people might assume that all traders are trying to obtain excess return, in reality most people starting down the trading path get sidelined because they give in to incorrect beliefs about the market.  

Incorrect beliefs cause losses. Often, devastating losses. Since the first rule to success as a trader is: "Survive each trade so that you can get to the winning trades", making sure your understanding of fundamental trading principles is correct is paramount. And shortens your learning curve to success.

As a counter-point, correct beliefs enable success.  

Winning traders want the TRUTH.  Not what is popular.  Truth works.

No less than Ayn Rand (note the quote below) regarded traders as rare and special types of humans, set apart by something unique in themselves that forces them to act in a fundamentally different way from average people.

Trader Priniple

The symbol of all relationships among [rational] men, the moral symbol of respect for human beings, is the trader. We, who live by values, not by loot, are traders, both in matter and in spirit. A trader is a man who earns what he gets and does not give or take the undeserved. A trader does not ask to be paid for his failures, nor does he ask to be loved for his flaws. A trader does not squander his body as fodder or his soul as alms. Just as he does not give his work except in trade for material values, so he does not give the values of his spirit—his love, his friendship, his esteem—except in payment and in trade for human virtues, in payment for his own selfish pleasure, which he receives from men he can respect. The mystic parasites who have, throughout the ages, reviled the traders and held them in contempt, while honoring the beggars and the looters, have known the secret motive of their sneers: a trader is the entity they dread—a man of justice.

Ayn Rand - Galt's Speech, For the New Intellectual.

A little about me.

I have been trading for most of the last 3 decades in the futures (derivatives) and the forex markets. I have traded successfully in the futures pit environment for 7 years and "off-floor" for more than 2 decades. With the electronic trading frontier we now have, the opportunities for obtaining profits due to individual intelligence and knowledge are unparalleled in the history of man.

I didn't achieve success as rapidly as I wished. I had success, then failure. I had greater successes, and then greater failures.

It took 3 solid years of determined trading and learning until I was certain that I had a mathematical edge that, if exploited carefully and consistently, I could survive and then thrive financially.  I have no doubt that anyone who is determined to have success as a trader has the capacity to obtain it.  

Unfortunately, it may end up being the answer for the popular curse, "be careful what you wish for!"

Learning more is inevitable if one keeps at the business, but you have to survive financially to stay in the business. Run out of capital, and you're done until you can get another stake or give up and do something easier.  Believe me, 95% of the people who are sure that they are meant to be traders could make five times the money they'll end up making from trading by selling used cars!

I'm sure some of you understand what I'm saying.

I'm happy that you can check in on this blog.  Feel free to drop me a line or make a comment.  

As I do trade for a living, and it tends to keep me busy about 5 - 6 hours a day (down from 12, thank-you very much, because of technology) it might take a little while to get an answer from me when conditions are busier.

Joel Rensink

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