Final Observations

By now it must be apparent to you, after my many references to it, that I believe Forex trading and gambling are closely related. Consider this. Both are somewhat random in nature. Black can appear ten times in a row on a roulette wheel. Then go black, red, black ten times in a row.

With Forex you may have a full day of small cycles that end up right where they started.

The next day prices may soar and never look back. In that way they’re both similar.

But, what does a casino have that most of us don’t have? Why do they seem to thrive while their visitors go home broke. The answer is easy.

Casinos are mindless entities that have an edge on every dollar wagered. No matter how long it may take, they always come out ahead simply because they have the edge. The odds are always in their favor.

If we accept this concept as fact, then it stands to reason if we can perform as a casino we will also prosper. But, to do that we must create our own edge. We must think, not as a mindless entity, but as someone who has the edge and knows how to use it.

That’s what I’ve tried to instill with you in this report. Casinos do not make a killing! They are content to rake in a certain percentage each day. We must do the same if we are to become successful traders.

You’ve been given the tools in this manual that will give you the edge. I call these tools the Keys to the Code for successful trading. They work. But you must use them carefully. If you choose to ignore or violate them you run the risk of “gambler’s ruin.”

Every casino game has a limit as to how much you can bet (as well as how little). Why do you think that is so?

It’s because they want to limit their exposure to risk.

To control our risk we must do the same. No matter how much cash you have burning a hole in your pocket you can’t violate the rules I gave you back in this blog: Let me refresh your memory:

1. We never risk more than 2% on any one trade.

2. We quit for the day if we’ve made five percent on our money.

3. We quit for the day if we’ve lost ten percent.

4. We also quit at 3:00 PM Eastern no matter where we are simply because the markets slow down around that time when the New York trade goes home.

Lastly, you must want to be a winner! Bruce Lee was told by doctors he might never walk again. Nearly broke and crippled, he visualized writing down all these negative thoughts on a piece of paper. Then, he’d see himself crumpling it up and throwing it in the trash.

Six months later he was a martial arts legend.

Bruce Lee was the hardest working person I’ve ever known. He never stopped learning. He never stopped innovating, and he never gave up his quest for doing the best he could.

Bruce once explained, “If you always put limits on yourself, both physical or otherwise, you might as well call it quits.”

I hope you’ll take those words to heart and let me know what plateau you’ve achieved in your reach for success in the Foreign Exchange Markets.