I get hundreds of emails every week on trading. Most of them are from brokers, trading systems providers, signal providers and from education providers. A lot of them are a complete waste of time, but some do have insightful information that can help in your trading business or trigger a thought process that will help you evolve as a trader.
I came across one such article that started by narrating how George Soros made £1billion in one days’ trading by selling pound sterling. For those who may not have heard of this, this indeed was a well recorded and published event that happened on the 16th September 1992 also known as black Wednesday. Going by those reports, yes he did indeed make £1 billion in a day – but spare a thought about the traders who were on the other side of his trade! It is said that even the British Government could not stem the flow that day despite pumping in billions to buy pound that day.
Yes there is a lot of money to be made in the markets, but don’t forget you are in competition with other traders, some of them like Mr Soros who are far more equipped in every way, and hence have better chances of winning. So before you put your hard earned savings at risk in markets, make sure you educate yourself properly, develop an understanding of how the markets operate and develop a plan that suits your personality and risk appetite. And finally trade only the plan you have developed, always conscious of who might be on the other side of your trade. You wouldn’t like to be on the wrong side of big and smart money – would you?
We place a lot of emphasis on this aspect in our training programme and work with individuals to develop the right behaviours to be successful at trading.