Big Profits From Currency Trading
If you want to make big profits from currency trading, you need to lock into and follow the longer-term trends.
“The art of contrary” thinking is one of the most powerful tools a trader can use, and is a trait with which all true great traders are familiar with.
What is the Art of Contrary Thinking?
Humphrey Neill’s book, “the art of contrary thinking,” the best known work on the subject, is based on a simple powerful idea that:
“When everybody thinks alike, everybody is likely to be wrong”
“The art of contrary” thinking consists in training your mind to ruminate in directions opposite to general public opinions; but basing your opinion in the light of current events and human behavior”.
Why Contrary Trading Works
By spotting situations when the consensus of a currency is either extremely bullish or bearish, means that a trend change is imminent, as it is likely the emotions of greed and fear have pushed prices too far away from true value.
If you can step aside from the crowd and take a contrary view at these turning points, you can make big currency trading profits. Contrary thinking can be used in any market and is highly effective in currencies.
Contrary thinking can be used to make really big currency trading profits and if used selectively, when markets are extremely over bought or oversold, you can be in right at the start of the trend for maximum profitability.
In any currency you look at – The Yen, Euro, British Pound Swiss Franc Canadian or Australian dollar and many others, there are always occasions where a currency trend in the news is forecast to continue, due to overwhelming evidence in its favor and it then promptly collapses!
Big profits from currency trading can therefore be made by using the art of contrary thinking when the market is extremely bullish or bearish.
Why? Because everyone who has bought has taken positions and there are no buyers left. Prices have moved away from fair value. When there is no more buying to enter the market, a trend change is imminent.
It is clear that to succeed and make big profits in currency trading you need to think independently of the majority at important market turning points.
You can make big profits in currency trading from trend following, but you can with a little practice spot potential turning points in currencies as well which will help you bank profits, tighten stops or open new trades right on the turn, for maximum profitability.
Contrary trading will not only make you big profits in currency trading but in ANY market and has worked for centuries, as human nature never changes.
Sacha Tarkovsky
http://www.articlesbase.com/investing-articles/big-profits-from-currency-trading-81055.html
9 Responses to “Big Profits From Currency Trading”
I hear many people make a good living from profits in currency trading. Who pays for those profits?
Comment made on February 14th, 2010 at 7:34 pmThe obvious answer that occurs to me is, "the othrer punters pay".
But in that case it is all a matter of luck, with a zero sum, since no one knows what the currency market will do.
I would assume the holders of the currency (which is all of us) who will pay for people who take our money in large amounts and dump it when it is profitable. Not an economics major so that’s just my guess. Countries always experience currency fluctuations so this could be a small portion of that aggregate.
Comment made on February 15th, 2010 at 12:36 amReferences :
Those who lose on the trading.
Comment made on February 15th, 2010 at 12:38 amReferences :
The people who spend their time doing what used to be known as an ‘honest day’s work’ – manufacturing, mining, nursing, serving other people, teaching, farming …
Comment made on February 15th, 2010 at 12:40 amReferences :
This is basically gambling, and you have to trade a lot of currency to make anything.
Here’s how it works:
You think that the US dollar is going to take a dive against the Euro, so you use $1 million to buy the equivalent in Euros:
$1 million = 737,080 Euros
In about a month, the value of the Euros goes up as compared to US dollars, so you sell them back:
737,080 Euros = $1,002,981
The $2981 you made (minus two exchange fees) is your profit.
If the US dollar goes up, you lose.
Comment made on February 15th, 2010 at 12:42 amReferences :
who pays for the profits for stocks? same thing but forex is just world wide and is way bigger than the stock market.
Comment made on February 15th, 2010 at 12:44 amReferences :
Currency trading is extremely high risk. More of a gamble than most high risk stocks. The people who are losing money are the one’s paying for those making money…there are always going to be people on the other side of the table(you dont want this to be you) Invest in something sound.
Comment made on February 15th, 2010 at 12:46 amReferences :
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Comment made on February 15th, 2010 at 12:48 amReferences :
http://bsmtprediction.blogspot.com/
I hear different. Not many people can make money from currency trading. However, you only need to understand it a little more than others and you will have an edge. The money in the forex market will be distributed according to losers and winners. There is some kind of a balance between the two.
Comment made on February 15th, 2010 at 12:50 amReferences :
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