The Retail Forex Trader

And The Retail Forex Industry

The Retail Forex Trader

And The Retail Forex Industry

Davidsen-Consulting

A Gigiantic Market

+ the rule of 90/90/90

So you have arrived at my website Davidsen Consulting. My writing relates to the Retail Forex Traders. They trade 5,5% of the global turnover per day. $5,3 trillion equals to the total markets.Online Retail Forex Trading took off in 1996. Anyone with access to the Internet can trade the global currency markets. Pro traders know the rule of 90/90/90. You should know it too. 90% of all retail forex traders lose 90% of their money within the first 90 days. Study what the 90% do wrong and become part of the 10% who do it right. My writing material is the day traders route towards an empty trading account. I've noticed how retail traders seek short to medium term information. I make the best progress with the greatest fun getting the big picture right.

Let me be straight with you. I'm a student of the forex markets. I'm seeking useful knowledge, and I'm very passionate about what I'm doing. I love the time I spend writing and reading. I will always keep learning. Being a retail trader is a lifestyle. Japan is the biggest retail currency market. ForexNewsNow states that Japan is responsible for 35-50% of the global retail currency trading. Another article from Reuters reports an expansion in the worldwide retail forex trading since 2013. The biggest expansion happens in Asia with Japan as the leading country. The pros, e.g. Hedge Fund Managers conduct their Forex sales by calling bankers. Small traders process transactions on electronic platforms. There were 4 million retail traders in 2014 according to a study by Bapi Maitra. 1,6 million in Asia, 1,4 million in Europe,  150.000 in the USA. 850.000 outside Asia, Europe and USA.

Time is your friend; impulse is your enemy – Jack Bogle

So you have arrived at my website Davidsen Consulting. My writing relates to the Retail Forex Traders. They trade 5,5% of the global turnover per day. $5,3 trillion equals to the total markets.Online Retail Forex Trading took off in 1996. Anyone with access to the Internet can trade the global currency markets. Pro traders know the rule of 90/90/90. You should know it too. 90% of all retail forex traders lose 90% of their money within the first 90 days. Study what the 90% do wrong and become part of the 10% who do it right. My writing material is the day traders route towards an empty trading account. I've noticed how retail traders seek short to medium term information. I make the best progress with the greatest fun getting the big picture right.

Let me be straight with you. I'm a student of the forex markets. I'm seeking useful knowledge, and I'm very passionate about what I'm doing. I love the time I spend writing and reading. I will always keep learning. Being a retail trader is a lifestyle. Japan is the biggest retail currency market. ForexNewsNow states that Japan is responsible for 35-50% of the global retail currency trading. Another article from Reuters reports an expansion in the worldwide retail forex trading since 2013. The biggest expansion happens in Asia with Japan as the leading country. The pros, e.g. Hedge Fund Managers conduct their Forex sales by calling bankers. Small traders process transactions on electronic platforms. There were 4 million retail traders in 2014 according to a study by Bapi Maitra. 1,6 million in Asia, 1,4 million in Europe,  150.000 in the USA. 850.000 outside Asia, Europe and USA.

Time is your friend; impulse is your enemy – Jack Bogle

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Updates, discussions and opinions

Professional Traders Secure a Basic Salary

Outside of Trading

I like to approach trading more like the professionals. That's why I have a small online business. Professional traders have a secured salary outside of trading. They don't take an income from the trading account. By having my small online business, I don't have to take an income from my trading either. I get people to understand why they should keep their current 5-9 job when they start out in trading or small online business. It provides a basic salary. The pressure of creating a new source of income gets lower as well. Secure a basic salary outside of trading for these reasons.∴ Pro traders have a basic salary.  ∴ Retail traders take a salary from their trading account. ∴ Pro traders get paid to trade. ∴ Retail traders pay to trade.∴ Pro traders aim to get rich with smooth returns, compounded. ∴ Retail traders aim to get rich in a hurry due to lack of money.

Don't trade for income

The smart RT traders build a website. The website generates cash flow so they have a basic salary outside of trading. Are you one of the smart RT traders? Will you build your cash flow system today? Will you approach the markets aligned with the pros? Or will you do it the retailer way? The magic formula is hard work.

I like to approach trading more like the professionals. That's why I have a small online business. Professional traders have a secured salary outside of trading. They don't take an income from the trading account. By having my small online business, I don't have to take an income from my trading either. I get people to understand why they should keep their current 5-9 job when they start out in trading or small online business. It provides a basic salary. The pressure of creating a new source of income gets lower as well. Secure a basic salary outside of trading for these reasons.∴ Pro traders have a basic salary.  ∴ Retail traders take a salary from their trading account. ∴ Pro traders get paid to trade. ∴ Retail traders pay to trade.∴ Pro traders aim to get rich with smooth returns, compounded. ∴ Retail traders aim to get rich in a hurry due to lack of money.

The smart RT traders build a website. The website generates cash flow so they have a basic salary outside of trading. Are you one of the smart RT traders? Will you build your cash flow system today? Will you approach the markets aligned with the pros? Or will you do it the retailer way? The magic formula is hard work.

The goal of a successful trader is to make the best trades. Money is secondary – Alexander Elder

Blog Posts

The Retailer Way or The Right Way

My-Business-Model-blogging-forex-trading

Hi I'm Jonbert!

What do you want from Retail Forex trading? The wrong reason to go into trading is money problems. Solve money problems first. Aim to get rich with smooth returns, compounded. Build a cash flow system outside of trading today. Your time is limited.

Hi I'm Jonbert!

What do you want from Retail Forex trading? The wrong reason to go into trading is money problems. Solve money problems first. Aim to get rich with smooth returns, compounded. Build a cash flow system outside of trading today. Your time is limited.

Stop focusing on money and get industry-knowledge. Getting the big picture right will lead you to a life in abundance. I’m willing to share my ideas with you! Without the big picture right, we’re like dogs, chasing our tail.

In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten – Peter Lynch


I read Rich Dad Poor Dad written by Robert Kiyosaki the first time in 2013. It’s my favorite personal finance book. I learned to be a humble student from it. I have been afraid of failure all of my life until I read Rich Dad Poor Dad. Reading this book gave me a new perspective on life, on failure, on money - on everything. I learned to get smarter from my mistakes and got a deeper understanding of the function of money. Robert Kiyosaki explains difficult concepts in a simple way. Even I can understand them, although I am a slow learner.  Buy the Kindle eBook!

Andy Tanner is an advisor of Robert Kiyosaki. Andy Tanner sorts the wheat from the chaff. Stock Market Cash Flow shows us how to avoid falling for the wrong ideas. Falling for the wrong ideas in trading is dangerous  in trading and expensive. Currency traders can learn a lot from Andy Tanner's way to approach the markets, although the trading examples in the book come from stocks and options. My favorite part of the book is where Andy Tanner shows us how to write a plan for our financial future. The majority of new currency traders don't have a such a plan. I like to be a part of the minority who has a plan.Buy the Kindle eBook!

I read Rich Dad Poor Dad written by Robert Kiyosaki the first time in 2013. It’s my favorite personal finance book. I learned to be a humble student from it. I have been afraid of failure all of my life until I read Rich Dad Poor Dad. Reading this book gave me a new perspective on life, on failure, on money - on everything. I learned to get smarter from my mistakes and got a deeper understanding of the function of money. Robert Kiyosaki explains difficult concepts in a simple way. Even I can understand them, although I am a slow learner.  Buy the Kindle eBook!

Andy Tanner is an advisor of Robert Kiyosaki. Andy Tanner sorts the wheat from the chaff. Stock Market Cash Flow shows us how to avoid falling for the wrong ideas. Falling for the wrong ideas in trading is dangerous  in trading and expensive. Currency traders can learn a lot from Andy Tanner's way to approach the markets, although the trading examples in the book come from stocks and options. My favorite part of the book is where Andy Tanner shows us how to write a plan for our financial future. The majority of new currency traders don't have a such a plan. I like to be a part of the minority who has a plan.Buy the Kindle eBook!

Reading Charts

Technical Analysis

Without an understanding of the forex markets, we depend on other people. Experts love to give us lots of advice and opinions. I don't like advice because it's very different from education. Do you like being told what to do? Advice is being told what to do. I get educated on how to trade the forex markets and I understand more and more as I study. I'm self-made, you can do it too. The education allows me to make my own decisions as what to do. I go for the context first - the big picture. The big picture is very important for me. Content, the details, come later. People want the be served. They want to be told when to buy and sell.It's much better to learn reading the charts yourself.

Skilled chart-readers don't need advice on what to do. The charts reveal the strength of the markets. The charts show the supply and demand. They show what people want or reject. The price is contextualized on a chart, because we see the current price in comparison to the historical price.

You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ – Warren Buffet

Without an understanding of the forex markets, we depend on other people. Experts love to give us lots of advice and opinions. I don't like advice because it's very different from education. Do you like being told what to do? Advice is being told what to do. I get educated on how to trade the forex markets and I understand more and more as I study. I'm self-made, you can do it too. The education allows me to make my own decisions as what to do. I go for the context first - the big picture. The big picture is very important for me. Content, the details, come later. People want the be served. They want to be told when to buy and sell.It's much better to learn reading the charts yourself.

Skilled chart-readers don't need advice on what to do. The charts reveal the strength of the markets. The charts show the supply and demand. They show what people want or reject. The price is contextualized on a chart, because we see the current price in comparison to the historical price.

You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ – Warren Buffet

Let's Connect on Social Platforms

Updates, discussions and opinions

I started using Stephen R. Coveys The 7 Habits of Highly Effective People 12 years ago. At that time I studied Philosophy at Southern University in Odense, Denmark. Today I use Covey's principals when I study the forex markets. They boost my progress. They balance my life. The principals help me prioritize and structure my learning. I'm learning and discovering new topics 7 days a week. The 7 Habits of Highly Effective People makes me a much more proficient student. The 7 habits can be applied in all areas of life. A traders success depends on his mindset. The 7 Habits of Highly Effective People prepare us to get this mindset.

Buy the Kindle eBook!

Traders must read The Psychology of Finance. Stock traders, currency traders, options traders. The book is very well-researched and filled with examples and references to further reading. Explanations cover various psychological patterns in the markets. Lars Tvede writes spot on. The reader gets a great presentation of different investing strategies, including their pros and cons. One chapter describes classic mistakes of new traders. Very valuable for new traders, because the mistakes pop up in our mind, when we make them after reading the book. That way we can correct them. The book is relatively expensive. See it as proof of quality. Lars Tvede is a bestseller author. You'll understand why when you have read this book. Buy the Book!

I started using Stephen R. Coveys The 7 Habits of Highly Effective People 12 years ago. At that time I studied Philosophy at Southern University in Odense, Denmark. Today I use Covey's principals when I study the forex markets. They boost my progress. They balance my life. The principals help me prioritize and structure my learning. I'm learning and discovering new topics 7 days a week. The 7 Habits of Highly Effective People makes me a much more proficient student. The 7 habits can be applied in all areas of life. A traders success depends on his mindset. The 7 Habits of Highly Effective People prepare us to get this mindset.

Buy the Kindle eBook!

Traders must read The Psychology of Finance. Stock traders, currency traders, options traders. The book is very well-researched and filled with examples and references to further reading. Explanations cover various psychological patterns in the markets. Lars Tvede writes spot on. The reader gets a great presentation of different investing strategies, including their pros and cons. One chapter describes classic mistakes of new traders. Very valuable for new traders, because the mistakes pop up in our mind, when we make them after reading the book. That way we can correct them. The book is relatively expensive. See it as proof of quality. Lars Tvede is a bestseller author. You'll understand why when you have read this book. Buy the Book!

Technical analysis relates to cash flow strategy and risk management. A chart tells the truth about the psychology of the market. That's what makes technical analysis so powerful. Chart-reading and technical analysis assist us in when to make our move. We enter and exit trades at the right time and place with technical analysis.   Technical Analysis enables us to decide if we have an uptrend, downtrend or a price within a range. The technic of this discipline applies in any situation where supply and demand affect the price. It reveals what price the market participants accept or reject. Traders use it to find points on the charts, where people say "no" and resist paying the price, and to find points where they say "yes" and support a price.

If your only goal is to become rich, you will never achieve it – John D. Rockefeller

Technical analysis relates to cash flow strategy and risk management. A chart tells the truth about the psychology of the market. That's what makes technical analysis so powerful. Chart-reading and technical analysis assist us in when to make our move. We enter and exit trades at the right time and place with technical analysis.   Technical Analysis enables us to decide if we have an uptrend, downtrend or a price within a range. The technic of this discipline applies in any situation where supply and demand affect the price. It reveals what price the market participants accept or reject. Traders use it to find points on the charts, where people say "no" and resist paying the price, and to find points where they say "yes" and support a price.

If your only goal is to become rich, you will never achieve it – John D. Rockefeller

The Forex Dream

And regulations in the Retail Forex Industry

Retail Forex trading is a contentious "make-money" issue. The 10% who are profitable worldwide - 400.000 traders - love it. Others - the 3.600.000 traders who are not profitable + a whole bunch of other people - hate it. They believe the whole industry is a scam. Forex traders get associated with fraud and wild claims. I understand it. Forex trading is mostly promoted as easy business with big profits. No or low effort required. This is the core of the Forex Dream. People who buy into this Forex Dream end up with a broken dream. They hoped to win but lost. What do losers do? They complain. The financial regulators react by demanding brokers to lowering the available leverage. We categorize forex traders in tree groups. Some trade in seconds or minutes. Others trade in hours or days. The third group trades in months or years. The day trader operates in seconds, minutes or hours.I have done my best to study the average day trader. I learn from his mistakes so I get smarter on handling my money. The retail participants jump in and trade. They don't know the markets. They don't know the industry. The average day trader pushes “sell” or “buy” and hopes for the best. He loses his first trading account within a couple of weeks or months. The losses stay unexplained. He moves on, forgets the forex markets. If he can.On January 15, 2015, the Swiss National Bank announced the unpegging  of the Swiss franc from the euro. The unpegging resulted in tumult on the currency markets. Authorities questioned the safety of retail currency trading. Was retail trading a scam? A trap for ordinary hardworking people? Did the people who participated in this activity have any security, when this could happen?This market event wiped several retail traders out. Others took massive losses. At least tree retail brokers entered into insolvency. Alpari, Global Brokers NZ and Boston Prime. The Retail Forex Industry was under pressure, once again. The national regulating agencies were shocked.How could brokers go into insolvency? Shouldn't they have risk managements systems to prevent this? How could this happen? The brokers got regulated, once again asked to lower their leverage. The retail traders kept trading. The Forex dream stayed alive since. An article on Institutionalinvestor pointed out that volume stayed the same. The traders were less scared than the authorities and the industry.Last time we had seen such a move in a single currency was when The United States left the gold standard in 1971.

 

Retail Forex trading is a contentious "make-money" issue. The 10% who are profitable worldwide - 400.000 traders - love it. Others - the 3.600.000 traders who are not profitable + a whole bunch of other people - hate it. They believe the whole industry is a scam. Forex traders get associated with fraud and wild claims. I understand it. Forex trading is mostly promoted as easy business with big profits. No or low effort required. This is the core of the Forex Dream. People who buy into this Forex Dream end up with a broken dream. They hoped to win but lost. What do losers do? They complain. The financial regulators react by demanding brokers to lowering the available leverage. We categorize forex traders in tree groups. Some trade in seconds or minutes. Others trade in hours or days. The third group trades in months or years. The day trader operates in seconds, minutes or hours.I have done my best to study the average day trader. I learn from his mistakes so I get smarter on handling my money. The retail participants jump in and trade. They don't know the markets. They don't know the industry. The average day trader pushes “sell” or “buy” and hopes for the best. He loses his first trading account within a couple of weeks or months. The losses stay unexplained. He moves on, forgets the forex markets. If he can.On January 15, 2015, the Swiss National Bank announced the unpegging  of the Swiss franc from the euro. The unpegging resulted in tumult on the currency markets. Authorities questioned the safety of retail currency trading. Was retail trading a scam? A trap for ordinary hardworking people? Did the people who participated in this activity have any security, when this could happen?This market event wiped several retail traders out. Others took massive losses. At least tree retail brokers entered into insolvency. Alpari, Global Brokers NZ and Boston Prime. The Retail Forex Industry was under pressure, once again. The national regulating agencies were shocked.How could brokers go into insolvency? Shouldn't they have risk managements systems to prevent this? How could this happen? The brokers got regulated, once again asked to lower their leverage. The retail traders kept trading. The Forex dream stayed alive since. An article on Institutionalinvestor pointed out that volume stayed the same. The traders were less scared than the authorities and the industry.Last time we had seen such a move in a single currency was when The United States left the gold standard in 1971.

 

The Adventures of a Currency Trader describes the problems new traders face. The greed, the Fores Dream about getting all that money with no or low effort. Harry Banes, a fictional figure, buys a trading system. That's just the beginning. He trades the amateur-way and his life gets complicated. He gets a chose: Face the mistakes, correct them, do things the right way, or he can continue doing all the wrong things. In this book, We meet the small trader. We meet the big trader.  Read the first four pages, and you will have a hard time laying down the book. Buy the Kindle eBook!

The Adventures of a Currency Trader describes the problems new traders face. The greed, the Fores Dream about getting all that money with no or low effort. Harry Banes, a fictional figure, buys a trading system. That's just the beginning. He trades the amateur-way and his life gets complicated. He gets a chose: Face the mistakes, correct them, do things the right way, or he can continue doing all the wrong things. In this book, We meet the small trader. We meet the big trader.  Read the first four pages, and you will have a hard time laying down the book. Buy the Kindle eBook!

Paper Trading

A Joke or a Learning Booster?

The experience of losing the trading account is painful. I've not tried it, but that is more due to luck than reason. A small group of day traders who have lost all reflect on what went wrong. They go back to trade. This time on their demo account. They decide to practice and learn on a demo account without losing all their money again. Trading on a demo account will solve a part of the problem. But they have difficulties explaining their previous losses. The lack of industry knowledge is still there. Let's take a look at a typical disclosure of a broker offering a demo account.

Free-practice-account-forex-davidsen-consulting

The differences between a demo account and a real account give us a clue what to learn. These are important issues to study before trading. If there are words in such a disclosure, that we don't understand, we are not ready to trade. Be willing to paper trade. It's foolish for a new forex trader to risk all his money on the first trade. Recovering from a mistake is hard. Mistakes on a demo account are useful. We can learn from them. Demo trading is a process of practicing our trades in a real account based on actual forex market activity. But we use paper money instead of real money. The idea is to learn from the mistakes and improve our trading skills. We learn risk management. At the same time, we can experiment and have fun. Do it with paper money, not real money. The virtual Forex account takes advantage of the high-tech world and its tools. We practice technical analysis, risk management on a risk-free demo account. We try different strategies to experience the risk and reward for each. Paper trading is an active way of learning. Having grasped the differences in the example of the disclosure above, I can move on to simulate the real thing by paper trading. Brokers offer customers a virtual account. I use it to get familiar with how to take orders and test my skills - without taking any risk. Trading on a demo account reduces beginners mistakes on how the platform works.The differences between demo accounts and real accounts are possibilities to learn more, rather than something we should bash.

The experience of losing the trading account is painful. I've not tried it, but that is more due to luck than reason. A small group of day traders who have lost all reflect on what went wrong. They go back to trade. This time on their demo account. They decide to practice and learn on a demo account without losing all their money again. Trading on a demo account will solve a part of the problem. But they have difficulties explaining their previous losses. The lack of industry knowledge is still there. Let's take a look at a typical disclosure of a broker offering a demo account.

Free-practice-account-forex-davidsen-consulting

The differences between a demo account and a real account give us a clue what to learn. These are important issues to study before trading. If there are words in such a disclosure, that we don't understand, we are not ready to trade. Be willing to paper trade. It's foolish for a new forex trader to risk all his money on the first trade. Recovering from a mistake is hard. Mistakes on a demo account are useful. We can learn from them. Demo trading is a process of practicing our trades in a real account based on actual forex market activity. But we use paper money instead of real money. The idea is to learn from the mistakes and improve our trading skills. We learn risk management. At the same time, we can experiment and have fun. Do it with paper money, not real money. The virtual Forex account takes advantage of the high-tech world and its tools. We practice technical analysis, risk management on a risk-free demo account. We try different strategies to experience the risk and reward for each. Paper trading is an active way of learning. Having grasped the differences in the example of the disclosure above, I can move on to simulate the real thing by paper trading. Brokers offer customers a virtual account. I use it to get familiar with how to take orders and test my skills - without taking any risk. Trading on a demo account reduces beginners mistakes on how the platform works.The differences between demo accounts and real accounts are possibilities to learn more, rather than something we should bash.

Geraint Anderson wrote Cityboy in 2008, at that time he was a pro trader in London. That carrier ended with the publishing of this book. The author claims the book is fictional. The book paints a colorful picture of the professional trader. Many people don't like traders. They see them as greedy and selfish people, who will do anything for money. Regardless of the what you and me think about the truth-value of this book, it gives a good picture of what many people think of traders. Reading this book made me realize why trading is such a polarized business. Buy the Kindle eBook!

Geraint Anderson wrote Cityboy in 2008, at that time he was a pro trader in London. That carrier ended with the publishing of this book. The author claims the book is fictional. The book paints a colorful picture of the professional trader. Many people don't like traders. They see them as greedy and selfish people, who will do anything for money. Regardless of the what you and me think about the truth-value of this book, it gives a good picture of what many people think of traders. Reading this book made me realize why trading is such a polarized business. Buy the Kindle eBook!

Leveraraged-trading