I know that when traders are having a difficult time making money forex trading, that there is nothing worse than hearing about some trader who is making a killing in the markets. You scratch your head pondering " how do they do that? " This especially rings true when you consider the fact that 95% of all forex traders end up losing money.
If you think the reason that separates the 5% from the 95% is intelligence, or lack thereof, you would be absolutely wrong. There are a ton of successful traders who struggled to graduate from high school. I've had the pleasure to speak to some of them, and I can tell you with great certainty, that brains are not entirely critical in this business.
You also may be under the impression that the rich and successful traders just use better tools than the average Joes of the world, and that is just not the case. in fact, the tools that traders use is really quite insignificant. One trader can have all the thousand dollar, state of the art, proprietary software at his disposal and still lose money, while someone else could be looking at a simple bar chart, and make a killing.
It really comes down to what the trader understands about the market. If a trader's goal is to really get a understanding of the market, then he can not expect to just toss a bunch of indicators on a chart, and become an expert in technical analysis. That's just not the way it's done.
