We are all vulnerable to the possibility there is a secret that, if known, would allow us to win the game, no matter what the game is that we are playing. In the matter of Forex trading secrets and their fabled existence, this is even more compelling. The potential profit from currency trading is almost incalculable. Just a few pips on a single currency-pair could mean thousands in profit, if you only knew when it would happen. Are there secret Forex Trading systems? Well, yes and no...
The Secret Magic
History has proven that even those who have gained millions of dollars and years of experience still believe in magic. Even if that promised magic comes in the form a hideously complex mathematical formula, it is still magic, or so they think. This is most often the case in Forex trading secrets. Of course, every brokerage and financial firm has its "black box" of trade secrets that it has developed over years of experience, but that is not exactly the same thing. Traders will even sell or trade their knowledge and while that is in fact real Forex secret trading, it is not the real secret to success.
The most recent example of the belief in a secret Forex trading system occurred a little over ten years ago and involved a company called Long-Term Capital Management. This was a collection of Nobel Prize winning economists that had created a revolutionary new formula, the Black-Scholes equations. After collecting 15 million in cash from investors, they proceeded to generate unheard of gains and money flowed like water. Does this sound like the secret magic of secret Forex trading? Before it was over, those billions had been lost.
The Real Forex Trading Secrets
In spite of the Nobel Prize-winning formula that is still in use today there was no trading secret. A loss such as this example is just as possible with any trading system. Thousands of webpages will offer to sell you the ultimate Forex trading secret, for a small fee of course. The real secret to profitable Forex trading is you, the trader. Using your own intelligence, spending long hours learning obscure terms and weeks researching brokerages and Forex funds to determine the best one are the only secrets you need.
If someone offers to sell you "Forex trading secrets revealed," the only thing that they really have is the ability to fool people. If they had such a secret, they would be using it instead of giving it away at any price. Forex trading is a complex and dynamic business and the real secret is hard work. The best advice is to learn all you can about Forex investing and then align yourself with a reliable and well-capitalized broker, such as ACM Forex.