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Forex Trading- Misconception vs Reality

FOREX FOR ALL
WITH KGOMOTSO

Have you ever wondered why wealthy people at most times when you knock at their door step for funding never want to fund a business idea? No person in their rightful mind will risk their hard earned cash in a paper.

Even when Steve Jobs started Apple, investors did not invest in his idea because they needed to see something tangible. Investors, 90% of the time don’t invest in an idea because they understand the reality of the business world. In a business plan you can project that you will make BWP40 000.00 a month, but as soon as you get into the businesses you will realise there is reality and misconception. Forex is no different, there is what you see on social media and what you see when it’s your time and the market.

When I started in 2016, I was enticed by the lavish life I saw that the so called “forex gurus” were living. These guys will post those fast toys and big houses (type of life I saw on MTV-Crips when I was just a boy) which I admired so much. I believed if a South African can do it then I can do it. I then contacted one of the forex models to teach me trading, he charged a whopping US$500 for a 1 day online session and so I paid. Well the guy showed me Moving Averages crossover strategy and after the session which lasted only an hour, I felt cheated and stupid.

I tried the strategy on my own at times it worked but most times the market was killing me. He is not the only guy I paid for training, I also paid someone for Elliot Wave Strategy US$500 for Price Action (support, resistance and Trendlines) Strategy US$400, none of these worked to my satisfaction. I don’t regret paying all these monies today, because I can confidently say these are useless strategies.

The only benefit is they developed me to know how Retail Traders see the market. In my hustle trying to find the best strategy, I came across an America guy by the name Michael because unlike these other gurus, he is the real deal (mind you I don’t consider him a guru, he is something better, a Mentor). Michael’s course was US$150/month for 12 months which equate to US$1800. To be the trader I am, I invested US$3200 and this last payment elevated my skill in this industry and I am now the guy in the inner circle.

Forex Trading is a Lottery

The most common question, how much can I make in week? This is the question that kill many potential traders because people come into forex trading thinking they are going to win but that is not the case. I know there are people who promise you that if “you invest US$500 you can make US$8000 in a week” well it is possible but it is gambling to me, even the bank when you invest with them, they promise you 3% a quarter.

Forex Trading is a business, just like any business out there, the primary goal is loss mitigation, and it is not a get rich scheme. On average it takes a trader a minimum of 18 months to be profitable and so people should not expect ridiculous returns in a short period of time. For you to survive the industry, you must focus more on how much you can lose than how much you can make. I always tell people this “treat every trade as a loss until you close it with profit’’.

Next time you want to ask a question about your investment it should be how much can I lose in a trade? The more you expose your money to risk expecting a quick return, the faster you will lose your trading account and soon term legit business a scam. Remember Coca-Cola sold 25 bottles the first year of operation but today it sells that in a second, forex trading is risk management.

Forex Trading should be free

It is human psychology that free stuff are of no value, but with Forex Trading why is it not the same dogma. We live in a century where information separate the rich and the poor. To excel any field you ort to be informed and this information does not come cheap. Did I tell you that I bought the Interbank Price Delivery System for a whipping  US$1800 to be the trader I am today? This lead me to another common question “if you making money in forex, why are you charging for mentorship?” The information I possess regarding how banks work in this industry is a privilege and it is the information that will be passed down my linage. Training and mentoring someone takes time, time from my family and charts. Most importantly you will never value the information that is delivered to you unless you put value in it.

There is a lot of free trading information in the internet, the brokers provide free reading materials and webinars. I dare you to study those materials, and attend those webinars, when you are satisfied, invest your hard earned cash and watch yourself lose it in a week if not in a day. Investing in training and mentorship is the best thing you can do for your trading career, you should start viewing training and mentorship as raw material of this business, information is the core of forex trading, seek information first, then money will follow you around.

Forex Trading is just Technical Analysis

I am not going to argue with anyone on this one, it is straight forward. Technical analysis makes a very negligible percentage in understanding forex trading. By definition, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. Components of technical analysis include chart patterns, support and resistance, Trendlines and indicators. Have you wondered why resignation of a company CEO or any scandalous information cause certain abrupt movement in price?

Have you wondered why the head and shoulder pattern never reached your target or never materialize? Have you wondered why a break out of Trendline never went far, or the retest on the breakout never held the price? There is so much to forex trading than just Trendlines, support/resistance, moving averages crossovers. Price is moved by fundamentals, there should be institutional sponsorship for price to move.

You need to understand an area where institutions are willing to buy or sell the asset, or an area where they are willing to take their profits and none of the training material available on the internet will get you close to perceive the market like a Market Marker. You need to understand that fundamentals are the drivers of the market, you need to understand how to blend technical Analysis and Fundamentals to come up with a high probable trading set-up. Information is key in trading forex.

Forex Trading is Easy

Lack of information make trading forex difficult, I have passed that stage where I thought only technical analysis was everything in forex. Almost all Brokers will tell you 90% of traders end up losing their investments. I am not saying this to scare you, I am saying this so you can be woke, be informed. You need to invest in getting information if you want trading to be pleasant to you, don’t be stingy when it comes to your development and also don’t be lazy.

Do it Yourself

All professional traders have mentors or started with a mentor and later become independent, in-fact in every business you should have a mentor. Even my mentor had a mentor who taught him IPDA. When I talk about professional traders I am not talking about traders who can’t explain price delivery, not guys who trade chart patterns or Trendlines. I am talking about guys who subscribe to Bloomberg, Reuters, and so forth. It is a great setback to think you will excel without someone to guide you in this business.

I Trade Without a Trading Plan

It is believed that Notorious BIG did not write lyrics, he will just get in a studio and lay down a track, on the other hand 2 Pac wrote his lyrics and many more. Today 2 Pac is consider the best rapper ever lived (RIP Pac). 2 Pac was influential and his music had concept, his legacy will move on because his lyrics are still produced. If you write a plan, it is easy to scrutinize and develop it, overtime it becomes the best system.

Trading plan helps you to control risk and keeps you in check. All professional traders have a trading plan and they stick to it. For you to best follow your trading plan, you must quit all this other forex trading groups you in, you only need to be in a group that is created by your mentor(s), do not have mentors who use different strategies, you will be confused. Even if you are in your mentor’s group, follow your trading plan, do not compete with anyone except the person you were the last trade, remember your mentor can also be wrong, he/she is human, no one is immune to a loss.

It is better to invest your money in getting information that matters, something that you can pass down to your kids and they find value in it. Imagine at 60 years asking your children to bring you a laptop so you can show them their inheritance and they found Trendlines and moving averages. Trading is more sophisticated than that. God bless you in your forex career development.

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Export Processing Zones: How to Get SEZA to Sizzle

23rd September 2020
Export Processing Zone (EPZ) factory in Kenya

In 2005, the Business & Economic Advisory Council (BEAC) pitched the idea of the establishment of Special Economic Zones (SEZs) to the Mogae Administration.

It took five years before the SEZ policy was formulated, another five years before the relevant law was enacted, and a full three years before the Special Economic Zones Authority (SEZA) became operational.

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Egypt Bagged Again

23rd September 2020
Samson

… courtesy of infiltration stratagem by Jehovah-Enlil’s clan

With the passing of Joshua’s generation, General Atiku, the promised peace and prosperity of a land flowing with milk and honey disappeared, giving way to chaos and confusion.

Maybe Joshua himself was to blame for this shambolic state of affairs. He had failed to mentor a successor in the manner Moses had mentored him. He had left the nation without a central government or a human head of state but as a confederacy of twelve independent tribes without any unifying force except their Anunnaki gods.

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‘RO, ‘RO ‘RO YOUR ‘BOT

23rd September 2020

If I say the word ‘robot’ to you,  I can guess what would immediately spring to mind –  a cute little Android or animal-like creature with human or pet animal characteristics and a ‘heart’, that is to say to say a battery, of gold, the sort we’ve all seen in various movies and  tv shows.  Think R2D2 or 3CPO in Star Wars, Wall-E in the movie of the same name,  Sonny in I Robot, loveable rogue Bender in Futurama,  Johnny 5 in Short Circuit…

Of course there are the evil ones too, the sort that want to rise up and eliminate us  inferior humans – Roy Batty in Blade Runner, Schwarzenegger’s T-800 in The Terminator,  Box in Logan’s Run,  Police robots in Elysium and  Otomo in Robocop.

And that’s to name but a few.  As a general rule of thumb, the closer the robot is to human form, the more dangerous it is and of course the ultimate threat in any Sci-Fi movie is that the robots will turn the tables and become the masters, not the mechanical slaves.  And whilst we are in reality a long way from robotic domination, there are an increasing number of examples of  robotics in the workplace.

ROBOT BLOODHOUNDS Sometimes by the time that one of us smells something the damage has already begun – the smell of burning rubber or even worse, the smell of deadly gas. Thank goodness for a robot capable of quickly detecting and analyzing a smell from our very own footprint.

A*Library Bot The A*Star (Singapore) developed library bot which when books are equipped with RFID location chips, can scan shelves quickly seeking out-of-place titles.  It manoeuvres with ease around corners, enhances the sorting and searching of books, and can self-navigate the library facility during non-open hours.

DRUG-COMPOUNDING ROBOT Automated medicine distribution system, connected to the hospital prescription system. It’s goal? To manipulate a large variety of objects (i.e.: drug vials, syringes, and IV bags) normally used in the manual process of drugs compounding to facilitate stronger standardisation, create higher levels of patient safety, and lower the risk of hospital staff exposed to toxic substances.

AUTOMOTIVE INDUSTRY ROBOTS Applications include screw-driving, assembling, painting, trimming/cutting, pouring hazardous substances, labelling, welding, handling, quality control applications as well as tasks that require extreme precision,

AGRICULTURAL ROBOTS Ecrobotix, a Swiss technology firm has a solar-controlled ‘bot that not only can identify weeds but thereafter can treat them. Naio Technologies based in southwestern France has developed a robot with the ability to weed, hoe, and assist during harvesting. Energid Technologies has developed a citrus picking system that retrieves one piece of fruit every 2-3 seconds and Spain-based Agrobot has taken the treachery out of strawberry picking. Meanwhile, Blue River Technology has developed the LettuceBot2 that attaches itself to a tractor to thin out lettuce fields as well as prevent herbicide-resistant weeds. And that’s only scratching the finely-tilled soil.

INDUSTRIAL FLOOR SCRUBBERS The Global Automatic Floor Scrubber Machine boasts a 1.6HP motor that offers 113″ water lift, 180 RPM and a coverage rate of 17,000 sq. ft. per hour

These examples all come from the aptly-named site www.willrobotstakemyjob.com    because while these functions are labour-saving and ripe for automation, the increasing use of artificial intelligence in the workplace will undoubtedly lead to increasing reliance on machines and a resulting swathe of human redundancies in a broad spectrum of industries and services.

This process has been greatly boosted by the global pandemic due to a combination of a workforce on furlough, whether by decree or by choice, and the obvious advantages of using virus-free machines – I don’t think computer viruses count!  For example, it was suggested recently that their use might have a beneficial effect in care homes for the elderly, solving short staffing issues and cheering up the old folks with the novelty of having their tea, coffee and medicines delivered by glorified model cars.  It’s a theory, at any rate.

Already, customers at the South-Korean  fast-food chain No Brand Burger can avoid any interaction with a human server during the pandemic.  The chain is using robots to take orders, prepare food and bring meals out to diners.  Customers order and pay via touchscreen, then their request is sent to the kitchen where a cooking machine heats up the buns and patties. When it’s ready, a robot ‘waiter’ brings out their takeout bag.   

‘This is the first time I’ve actually seen such robots, so they are really amazing and fun,’ Shin Hyun Soo, an office worker at No Brand in Seoul for the first time, told the AP. 

Human workers add toppings to the burgers and wrap them up in takeout bags before passing them over to yellow-and-black serving robots, which have been compared to Minions. 

Also in Korea, the Italian restaurant chain Mad for Garlic is using serving robots even for sit-down customers. Using 3D space mapping and other technology, the electronic ‘waiter,’ known as Aglio Kim, navigates between tables with up to five orders.  Mad for Garlic manager Lee Young-ho said kids especially like the robots, which can carry up to 66lbs in their trays.

These catering robots look nothing like their human counterparts – in fact they are nothing more than glorified food trolleys so using our thumb rule from the movies, mankind is safe from imminent takeover but clearly  Korean hospitality sector workers’ jobs are not.

And right there is the dichotomy – replacement by stealth.  Remote-controlled robotic waiters and waitresses don’t need to be paid, they don’t go on strike and they don’t spread disease so it’s a sure bet their army is already on the march.

But there may be more redundancies on the way as well.  Have you noticed how AI designers have an inability to use words of more than one syllable?  So ‘robot’ has become ‘bot’ and ‘android’ simply ‘droid?  Well, guys, if you continue to build machines ultimately smarter than yourselves you ‘rons  may find yourself surplus to requirements too – that’s ‘moron’ to us polysyllabic humans”!

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