Why do people sell products if they already make money trading?
I had written this post long before I ever dreamed to sell something. I’ve met three category of sales people in this business. Scammers, sellers not traders and successful traders who were also sellers. The scammers will usually sell systems that don’t work, simply said. Or they will sell stuff you can download for free on the internet. But it’s not correct to generalize that all sellers are scammers. Think with me. It’s not uncommon to listen the cliché: “Whoever makes enough money with his strategy does not need to sell indicators or EA’s”. I agree, they don’t need to. But it doesn’t mean they don’t want to. Have you ever heard a millionaire saying: “I’m rich enough. I don’t need any more money”. On the contrary. The more you make money, the more you’ll want to make. It’s human nature. And it has nothing to do with being bad or greedy. Besides, binary options in itself is quite limited. There’s an income cap so to speak. Heavy traders play hard in forex instead. So if they have a good trading system, why not sell it and have an extra income?
Watch for the Compound Interest Spreadsheet trap
Those spreadsheets of daily growth can do more harm than good to the trader. If you begin with a $250 account, you can even have a more substancial growth in the beginning, because you’ll be more daring with a small account; however, at some point you’ll have a bad trading day (as the best of us do) and you’ll be so used to the fast growth f your account, that you’ll get desperate and martingale irresponsably. It’s like reaching those spreadsheet goals turned into an individual game in itself and that’s where the danger lies. You can lose everything you’ve won in a matter of minutes. Those spreadsheets will turn into a game you won’t want to lose. So my piece of advice is: More important than focusing on making money in the beginning, it’s to master a specific strategy and have a steady winning rate. You’ll make money eventually, don’t worry. Paradoxically, whoever focus on making tons of money in the beginning are the ones who end up losing money in the mid term. I insist, it’s all about mindset and habits, so start creating the healthier ones.
Why arrow indicators alone can never be consistent trading systems?
That one will sound like bad news to some of you. We’ve almost all been there, let’s admit. I have. I had my share of looking for the magic arrow where it alone would show me what trades to take and make me rich. I’ve even payed several hundred of dollars for those (Sigh!).
Ok. Straight to the cut. Let’s see once and for all why it cannot possibly be used as a sole indicator.
What is an arrow indicator? Behind that arrow there is a combination of other indicators that when they perform a certain algorithym an arrow is displayed. Example: When Stochastics goes overbought or oversold, RSI 14 and Value Charts level 10 do the same, an arrow displays on the chart. So once you get a file with an arrow indicator, the parameters of the indicators behind the arrow are carved on stone. Unchangeable. As you already know or are about to know reading my blog, the market movement changes from period to period and experienced traders always calibrate the parameters of the indicators they use to function optimally with the new market logic of movement. And that arrow, my friend, becomes obsolete. So even if the sales person shows screenshots and videos of success in the past, know for sure it will no longer be effective in the future.
Binary Options or Forex?
I have a good friend that almost 3 years ago insisted I would quit binary options and stay with forex only, but it never really happened. I love the binary options rush and the speed you can make money with it. If you can master it, it’s delicious. The haters must hate! Lol
What I like about Forex is that I can spend 5 days partying in Ibiza with a position open and not working at all. On the other hand, to make money with binary options, I’ll have to open my computer and trade for at least 30 minutes or so. I see no problem with that. So I think both are a perfect combination for me.