Just Another WordPress Site – so that’s the default website title you get when you first setup a blog, and I thought to myself – hang on a second, there is something meaningful and relevant to what I am about to write as an intro to this blog.
This may well be just another site, another day trading blog, but contrary to the name of this blog – I would like to clarify any misconceptions that might arise.
This blog could be many things but not a tipster blog or a get rich quick scheme type of blog – if you are looking for one, then here’s the bad news: if you have come to this blog hoping for a quick tip to make you an overnight success or some expert spilling his secrets, you may be disappointed.
This blog is instead dedicated to the psychology of trading, and to stimulate educational debates, and help us figure out the right mindset and mental approach to carry out successful trades.
Here’s a small fact if you are still interested to read this blog:
A great majority of binary options marketing websites that help new people learn to trade don’t actually want them to do any careful thinking.
They instead want them to think that they are going to uncover some sort of secret formula that requires no brain power whatsoever, and enable them to amass a huge amount of wealth in a very short amount of time. If you are starting out and hoping for something similar to that – then no personal offence to you, but you’re in ‘cukoo land’ and you need to wake up and start your own thinking and learning.
I am no day trading expert by any means. These are words you certainly don’t expect to read on a blog that is dedicated to providing ‘day trading tips’. So at this point if you’re wondering that you could be wasting your time on a blog that is written by a non-expert – then what the hell is it?
It’s a blog dedicated to sharing my experiences with other guys out there who do not have a formal finance background or education like me.
It’s for those of you who have thus far taken more interest in the Financial Times Paper for lining up shelves or cat litter boxes than making a good read out of it.
It’s also for those of you who have been miss-sold the dream of success and life of great riches without requiring any of the intellect that you may already possess.
I would like to discuss – why is it so. Why so many of us fall for the same old hustler tricks. Often the corny marketing websites have the same underlying message to it’s prospects – you have to be really dumb and careless to be rich, and yet thousands upon thousands follow suit. The reality is quite different. The people who have made a genuine success out of day trading understand the principles of trading and have mastered the discipline and timing to carry out their master strokes.
Or they have access to insider information.
I would however disregard my latter argument as it sounds rather nonacademic. 🙂
If you are starting out, or had any failures in the past, then this blog can be your guide to start afresh. Avoid some of the common pitfalls that we often overlook. I personally think the majority of the binary options trading/marketing websites are to be blamed. Just to give you an example of the selling tactics that surround the idea of day trading. You will notice that 80% to 90% of their sales material is focused on selling you that ultimate dream of riches and very little about education and learning of the rules that govern this trade like any other trade. If you have any trading experience, then you would know that there isn’t a magic bullet, a blueprint or a free pass to making money. If you disagree or believe that there is any such thing then the brokers and agents won’t need you and me. They would keep their secret to themselves and quietly carry on making wealth for themselves.
The cold reality is quite shocking and saddening – the brokerage/affiliate businesses are acting more like predatory entities trying to succumb naive prey in to their nets. The net has become their cobweb, and technology is now aiding catalyst to the epidemic of binary trading failures – The brokerage firms make more money on people losing than from those who succeed in trading. Just to give you an idea of the scale of this problem it’s a known and established fact that over 95% of binary options traders lose money. Why do you think this is happening? Having no knowledge of a new trade is one thing – but when the majority of the people who sign up for day trading often join through brokerage firms who in 99% of the cases offer some sort of expert coaching programmes either directly or indirectly through their marketing channels, this figure should be much lower – but it isn’t. It’s obvious that majority of the people are miss-sold ‘day trading’ as an easy money making schemes.
There’s another human aspect that makes up for this horrible success rate in day trading – greed. Often when I am reading forums I have come across countless accounts of people often mentioning their distrust on brokers. I found discussions done at great lengths with hundreds of replies where people are collectively suspecting the brokers for making them lose money. If you explore, you will read things like; In a matter of days I was able to double or triple my money and then one wrong move made me lose all of it. When I see such things, I personally think we can’t rule the possibility of fraud, but often the brokerage firms are regulated and they have too much at stake to commit such minuscule frauds. It’s often greed and fear that overtakes the best part of our cognitive wisdom and cause these common occurrences of sweeping losses.
If you have read my blog so far and wonder if this article serves any purpose of promoting day trading at all – then I have some good news for you. I could have written a one sided pitch to motivate you towards trading, but that isn’t the purpose of this blog. Rest assured, there will be plenty of self help articles alongside trading strategy content, but mainly it’s a place for me to share my own experiences and understanding of day trading. I would like to hear the opinions of my readers. I think sharing the right knowledge and being aware of the reality is rather the right way of mastering any trade. There are best practices, do’s and don’t and strategies that work, but it requires knowledge and understanding. One must enable themselves to be able to read the market conditions, understand trends, determine risk and reward before carrying out any trades.
Now here’s another problem – what sources of knowledge are reliable? who should you trust? and what strategies actually work?
We will address all of these issues in the forthcoming blog posts. However, in short I would like to say that any self proclaimed experts teaching you a quick overnight success formula may not be the right people you should follow. Now I do realise there are often strategies that work in a certain market condition but there isn’t a single strategy or one glove fit all solution when it comes to trading the markets. If you have the patience to understand and learn to read the markets then you have some chance of success, given that you also learn the discipline involved in trading and adhere to them at all times.
There is nothing magical about day trading. If you insist I share the secret to day trading success 🙂 then here’s my version of it.
“Day trading is an art to uncover the not-so-obvious from the obvious and using your capacity to benefit from it.”
I might have a personal interest in a particular stock, currency or commodity but by no means you should follow my judgement. You should always do your own research and come to your own decisions for buying shares or stocks.
I have no affiliation to any brokerage firms, neither I have the qualification to do so. Often tipsters would urge you to buy something and are regulated by the FSA. I am neither regulated, nor qualified to do any of those.
Let’s be honest – we are all driven by some kind of an economic incentive. I would love to see this blog materialise by some kind of paid advertising/sponsorship. If all else fails, I could be emailing you to buy my granny’s second hand furniture, or cat litter box liners (Financial Times Papers) which I will have an ample surplus of by then 🙂