Forex

When you try to make money trading, do you ever stop to wonder where
your expected profits will come from? Is there money in the markets because
of higher company earnings, or lower interest rates, or a good soybean crop?
The only reason there is money in the markets is that other traders put it
there. The money you want to make belongs to other people who have no
intention of giving it to you.
Trading means trying to rob other people while they are trying to rob you.
It is a hard business. Winning is especially difficult because brokers and
floor traders skim money from losers and winners alike.
Tim Slater compared trading to a medieval battle. A man used to go on a
battlefield with his sword and try to kill his opponent, who was trying to kill
him at the same time. The winner took the loser's weapons, his chattels, and
his wife, and sold his children into slavery. Now we trade on the exchanges
instead of doing battle in an open field. When you take money away from a
man, it is not that different from drawing his blood. He may lose his house,
his chattels, and his wife, and his children may suffer.
An optimistic friend of mine once snickered that there are plenty of poorly
prepared people on the battlefield: "Ninety to ninety-five percent of the brokers
don't know the first thing about research. They don't know what they're
doing. We have the knowledge, and some poor people who do not have it are
just giving the money away to charity." This theory sounds good, but it is
wrong - there is no easy money in the market.
There are plenty of dumb sheep waiting to be fleeced or slaughtered. The
sheep are easy -but if you want a piece of their meat, you've got to fight
some very dangerous competitors. There are mean professionals: American
gunslingers, English knights, German landsknechts, Japanese samurai, and
other warriors, all going after the same hapless sheep. Trading means battling
crowds of hostile people while paying for the privilege of entering the
battle and leaving it, whether dead, wounded, or alive