The bigest names in Forex market are Warren Buffet (Berkshire-Hathaway), George Soros who made a fortune on a single trade.
And what I am most proud of that I had an opposite position with Buffet and I made profit on it - well at least on paper at that time.
The point of this article that small players play and win differently than big guys. Buffet played on the long term and I just made a quick proift (hit and run style).
Showing posts with label Traders. Show all posts
Showing posts with label Traders. Show all posts
Zero-Sum Game
This is a false belief again that many markets are zero-sum games, such as Forex, Options, etc. What that statement sais is basically, what you win, somebody else looses.
I myself would have learned about the markets long-long before if I would not have known that the "zero-sum" idea is a false belief. Or at least a half-truth.
Governments print money whenever they need. Or they print 'bonds" which is practically the same as printing money. Where is Forex zero sum?
Options are created similarly. You write one, and you sell it. Both options and futures are not an empty stuff used by speculators to gain some advantage in a global poker game called "futures market" or "options market". These are very important financial tools to hedge against future risk.
When a company writes a future contract. They are hedging against potential loss. Yes, they might "loose on the trade" but actually they did not. They already know months ago their exact profit on the books, because they already had months ago this future contract. There is no loss here, it is just a "locking in of profit". A good business. And on the other side of this trade, a speculator might lost or win some money in exchange for providing the financing for this company on this contract.
Or maybe, there is no speculator on the other side of this contract, just another company wanting to fix down the price today for the future. Nobody loose in this contract. They just agreed on the price between each other and they could not care less after this deal which way the entire market moves.
I myself would have learned about the markets long-long before if I would not have known that the "zero-sum" idea is a false belief. Or at least a half-truth.
Governments print money whenever they need. Or they print 'bonds" which is practically the same as printing money. Where is Forex zero sum?
Options are created similarly. You write one, and you sell it. Both options and futures are not an empty stuff used by speculators to gain some advantage in a global poker game called "futures market" or "options market". These are very important financial tools to hedge against future risk.
When a company writes a future contract. They are hedging against potential loss. Yes, they might "loose on the trade" but actually they did not. They already know months ago their exact profit on the books, because they already had months ago this future contract. There is no loss here, it is just a "locking in of profit". A good business. And on the other side of this trade, a speculator might lost or win some money in exchange for providing the financing for this company on this contract.
Or maybe, there is no speculator on the other side of this contract, just another company wanting to fix down the price today for the future. Nobody loose in this contract. They just agreed on the price between each other and they could not care less after this deal which way the entire market moves.
Social Groups
Trading is a lonely profession. Here are some excellent social groups that you can join to chat and find other traders.
www.trade2win.com: It gives possibilty to seek out other traders in your area.
www.advfn.com: Offers some services to traders. Includes GTIS quotes.
www.moneyam.com:
www.forexfactory.com
Any social group platform is also a good source to find traders:
Yahoo groups.
Google groups.
Note: there are open groups and there are limited ones. The ones that are open are often full of junk and no specific strategies are discussed there.
TODO: Add all the social groups I use in the future.
www.csta.org - Canadian Society of Technica Analysts.
www.stockcentral.com
Amibroker's user group: http://finance.groups.yahoo.com/group/amibroker/messages/
http://www.moneytec.com/forums/
TradeStation user group
Meta... user group (MIG)?
www.trade2win.com: It gives possibilty to seek out other traders in your area.
www.advfn.com: Offers some services to traders. Includes GTIS quotes.
www.moneyam.com:
www.forexfactory.com
Any social group platform is also a good source to find traders:
Yahoo groups.
Google groups.
Note: there are open groups and there are limited ones. The ones that are open are often full of junk and no specific strategies are discussed there.
TODO: Add all the social groups I use in the future.
www.csta.org - Canadian Society of Technica Analysts.
www.stockcentral.com
Amibroker's user group: http://finance.groups.yahoo.com/group/amibroker/messages/
http://www.moneytec.com/forums/
TradeStation user group
Meta... user group (MIG)?
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