Trade Ideas

If you want to make money trading then you need to learn to maximise profits

I’m about to sign off for the night so after a busy day and while in reflective mood, let me try and share some of the things I’ve learnt over 26 years trading the FX market:

  • It’s a young man’s business! Sorry to tell you this, but there’s a reason that banks primarily hire young, risk-taking males to work as FX dealers. When you’re over 45 like me it’s increasingly difficult to give this business the 100% total commitment which is necessary in order to make it big.
  • Analysts, economists and strategists make terrible traders! Big banks have been studying markets for decades and developing models which work. They hire plenty of analysts, strategists and economists but they don’t let them trade; trading is done by traders!
  • So if a good strategist gets 65% of his/her calls right, why don’t they make money as traders? Simple; its an entirely different skill set. Knowing when to increase risk and when not to is the mark of the great trader.
  • There are very very few great traders and you will never hear from them because they have the ability to make $10 or $20 million per annum quite easily just using their own money. They have no need to sell their systems or publicise themselves.

And by the way, all those systems and experts out there who are purporting to sell the next sure-fire 100% definite way to make money in the FX market- they are scam artists! There is no such thing as a perfect system, some work occasionally but you may as well toss a coin. Go and learn how to maximise your profits and then you’ll have some fun trading.

Good night and see you tomorrow.

  1. Thanks for this reminder if i study my track record with your comment, I am good analyst and poor trader. That why i learn with you 😉

    See you tomorrow

  2. Thank you for sharing Sean! Always interesting!

    If I may add to this, for me, one of the big problems with trading is how you react to your winning trades (once closed). Winning tends to weaken the psychology and relax the trader. Which leads him often to give back part of his gains or worse lose more than he gained.

    That is why money must get you angry if you want to be successfull (in trading or any other activity by the way).

  3. Well said Sean.

    Btw, do you know eToro? This platform has a social network for traders and we can see their performance. Some of them are called gurus but I notice that many so-called gurus blew up their account after gaining 200-300%. Totally agree with you that talented traders have no interest of making them publicly known.

  4. Sean good post. Thank you. I feel obsolete, but not out yet. Actually even encouraged. I am totally with you that you would never tell a great trader on cocktail party. The best guys I met are quite humble and almost never talk about markets))) They usually listen and act.

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