OK, so probably not that much…
But with the incredible marketing power of Disney behind the new Star Wars movie, I have been seeing a lot of Star Wars and therefore I have been thinking about it quite a bit… And I figured, why not jump on the bandwagon?
I decided to do an Article Trilogy (loosely) based on Star Wars.
- Episode 1: A Millionaire’s Hope
- Episode 2: The Banker Strikes Back (awesome graphic coming soon…)
- Episode 3: Return of the Trader (awesome graphic coming soon…)
Pretty clever, right? (OK, maybe not THAT clever but just let me have my fun)
In this Trilogy, we are going to discuss the journey that the retail trader takes–after all, the odds of beating the FX market and massive institutions are pretty similar to the odds of destroying the Galactic Empire–so I think this analogy is going to play out quite well.
(For those of you that have not seen the original Star Wars trilogy, you may want to take a quick 9 hour break to catch up)
As Star Wars begins, we find a young Luke Skywalker struggling along in life. Completely unsatisfied with his current situation; He wants something more, and he knows that something more is out there.
Frankly, I think this is a not-so-stretched analogy for the average retail trader. Most folks going to Google and typing in “Forex” for the first time or, perhaps, hearing about it from a buddy, conference, ad, etc. are excited about the opportunity that Forex provides. They are excited about the idea that a mastery of Forex trading could pull them out of their current situation and give them the success and freedom they’ve dreamed of…
Maybe being a Master Trader is also something that would add definition to their life–it would certainly make them an interesting person and people would want to know about their secret to financial success. Undoubtedly, the interested Forex trader has a vision for much more than a bigger bank account. They probably want to use Forex as a way to fuel other passions and endeavors, give to others, start an orphanage, help their family, pay off their debt, etc.
Forex represents a vast and glorious opportunity… One that is theirs for the taking.
They begin to pursue that passion. And while the stars aligned for Luke and he met Obi-Wan, most traders aren’t quite that lucky (we can’t all be Skywalkers, after all. Most of us are like one of the soldier “extras” that have a meaningless death at the hands of the Empire that no one even notices… but we’ll talk about that more in the next episode).
Rather than falling into the lap of a master trader whose sole devotion becomes teaching us their ways, most traders are left to fend for themselves.
And fending for yourself against the Empire (Forex market) is a dangerous place to be.
Firstly, most don’t realize what an incredible task they are taking on when they decide they want a cut of the multi-trillion dollar market. They don’t realize that they’re flying a single X-wing plane at the Death Star…so to speak.
Now, before you get sick and tried of this long, drawn out analogy, let me say that I am not JUST using this as a silly way to say some important stuff about how to approach becoming a master trader…
I am completely sincere when I say that this really is a fight. When the majority of traders get slaughtered, it should make that pretty obvious–You are in DIRECT competition with other traders (and monster institutions) that would like nothing more than to see you get crushed.
So, let’s be clear, this is a fight.
Back to my analogy…
Most traders begin without training and with no concept of what they are taking on. They throw a few (or sometimes a lot more) bucks into an account and begin trading. As if the Market wants them to win. As if it’s easy. As if there is no one on the other side of these transactions with more experience, more firepower, more drive, and more skill to win the battle every time.
If I can switch analogies on you for a second, it’s kind of like deciding that you want to play soccer (Futbol) and deciding that you’re going to play in the next World Cup without any training.
Most people realize that would be an incredibly foolish thing to suggest, yet they don’t give any credence to the fact that they are facing off against professionals when they enter the Forex Market…
**NEWS FLASH: It’s the same thing. You are facing the best in the world at the World Cup and you are facing the best in the world when you trade the Forex Market.
Back to Star Wars…
The average trader might read a few articles, watch a few videos, or even buy a course (for analogy sake, let’s call the course “How to Become a Jedi in 6 Simple Steps”)… Then, all of a sudden, they think they are ready to take on the Market (Empire).
But let’s remember: Luke didn’t take on Darth Vader in the first movie after spending 15 minutes practicing with the spinning, sphere, laser thingy…
It’s only by understanding exactly what you are up against, that you can prepare a strategy that will give you victory.
Wait a minute… this analogy is really beginning to flow:
Only by getting the technical readout of the Death Star could the rebels develop a strategy to defeat it.
Just because the Empire is more powerful and has all the advantages, does not mean it is impossible for you to win in the market.
That’s why there are wealthy traders being made every day. That’s why there IS hope to be successful in the markets.
And that’s what keeps most aspiring traders going. Regardless of how many times they fail, most traders understand that it IS possible to succeed. The “Millionaire’s Hope” is not unfounded.
But the key is to recognize that it’s a journey and requires training and practice.
You’ll have some wins and some losses along the way, but recognizing what you are up against and understanding that success doesn’t happen overnight is a really important first step.
Once you grasp that and begin formulating a plan that meets the task of what you’re up against, you’ll begin seeing some wins in your trading. It won’t be an automatic “I am now a master trader” kind of thing…
It will be a slow and steady process that enables you to begin siphoning some of those trillions away from the big shots and into your own, little retail account.
But be warned, the Bankers will Strike Back (begin playing epic Star Wars music in your head now).
To be Continued…
Winner’s Edge Trading, as seen on: