Forex

A trader hears his broker’s voice at the most important and tense
moments—when placing buy or sell orders or requesting information
that may lead to an order. The broker is close to the market, and many
of us assume that he knows more than we do. We try to read our
broker’s voice and figure out whether he approves or disapproves of
our actions.
Is listening to your broker’s voice a part of your trading system? Does
it say to buy when the weekly moving average is up, daily Force Index
is down, and the broker sounds enthused? Or does it simply say to buy
when such and such indicators reach such and such parameters?
Trying to read your broker’s voice is a sign of insecurity, a common
state for beginners. Markets are huge and volatile, and their rallies and
declines can feel overpowering. Frightened people look for someone
strong and wise to lead them out of the wilderness. Can your broker
lead you? Probably not, but if you lose money, you’ll have a great
excuse—it was your broker who put you into that stupid trade.
A lawyer who was shopping for an expert witness recently called
me. His client, a university professor, had shorted Dell at 20 several
years ago, before the splits, after his broker told him it “could not go
any higher.” That stock became the darling of the bull market, went
through the roof, and a year later the professor covered at 80, wiping
out his million-dollar account, which represented his life savings. That

man was smart enough to earn a Ph.D. and save a million dollars but
emotional enough to follow his broker while his life savings were
doing a slow burn. Few people sue their brokers, but almost all beginners
blame them.
Traders’ feelings towards brokers are similar to patients’ feelings
towards psychoanalysts. A patient lies on the couch, and the analyst’s
voice, emerging at important moments, seems to carry deeper psychological
truths than the patient could have possibly discovered himself.
In reality, a good broker is a craftsman who can sometimes help
you get better fills and dig up information you requested. He is your
helper—not your advisor. Looking to a broker for guidance is a sign of
insecurity, which is not conducive to trading success.
Most people start trading more actively after switching to electronic
brokers. Low commissions are a factor, but the psychological change
is more important. People are less self-conscious when they don’t have
to deal with a live person. All of us occasionally make stupid trades,
and electronic brokers allow us to make them in private. We are less
ashamed hitting a key than calling a broker.
Some traders manage to transfer their anxieties and fears onto electronic
brokers. They complain that electronic brokers do not do what
they want, such as accept certain types of orders. Why don’t you transfer
your account, I ask—and see fear in their faces. It is the fear of
change, of upsetting the cart.
To be a successful trader, you must accept total responsibility for
your decisions and actions.