It is worthwhile to speculate on the Forex?
As it is commonly known is to start to make money systematically it is necessary to know the theoretical problems and, most importantly, to test them in practice. For this purpose, the required hundreds and sometimes thousands of hours on charts, books, seminars and trainings.
In the 1990s, conducted research at the Berlin Academy of Music with the aim to find answers to the question ”does exist someone with the innate talent?”
Based on this, it was assumed that in some fields / specialisation to reach masternivån and that it is necessary to sacrifice 10 000 hours for this purpose.
The results of this research was popularized in 2008 by Malcolm Gladwell in his book, ”Out of Scheme”, which suggests that the awareness of the ten thousand hour rule gives us much more space to maneuver and to make informed decisions, regardless of whether they are on the job or in our children’s lives.
How was calculated by the neurologist David Levtin?
”Ten thousand hours represents roughly three hours of exercise per day, or twenty hours a week for ten years.”
”It seems that our brain needs so much time to get everything right, and achieve true expertise in the field.”
But returning to the same research …
In order to achieve masternivån it is necessary to devote 10 000 hours to the improvement of a particular specialty. What should we do with people who, despite their sincere willingness to give up after a period of time?
As I mentioned in my previous column, each different, each has a different character, ambitions and determination. Studies from Ericsson had to categorize all the respondents in the three groups.
Those who reach the master’s level
People will be able to cope with a particular field, but will not stand out from other professionals
Those who never reach the master’s level and will focus on learning the other
As it turned out, the prospective teachers spent around 4000 hours on the exercise until the age of 20 years, talented students – about 8000 and they mastar-the level needed to devote 10,000 hours.
There is a substantial question … can the ten thousand rule be used in all fields and industries?
In order to answer this question it would be necessary to carry out a detailed research of the technical reasons seem to be almost impossible.
Let us focus on the markets …
So we can compare the speculation on financial markets to other professions?
In my opinion, is NO.
The biggest difference is shown in trade compared with other occupations is that each or at least most of the profession is based on strict rules and theoretical values, where with the right knowledge and control we become experts.
Markets are definitely a much more complex structure, which is reflected by the feelings and the behavior of the many people around the world and in which way the market goes is dependent on many people and their decisions, that we can not possibly predict.
When it comes to trade, the fortification of the technical or fundamental analysis does not even make us profitable. One of the most important factors and the main difficulty to achieve systematic profits, is the psychology.
Answer the question in the beginning of this column: is it worth it? You can respond in two ways. It is not worth for we are not sure if we will lose everything and will not be hetmana into the soul.
However, if we do not try we will not be convinced by that we reject all the possible solutions in the beginning, what will we achieve in life?
As prof. Bartoszewski: ”There are things in life that are worth and there are things that are worthwhile and not always what is worth it to pay and not always what pays off is worth it.”
So it seems that it does not pay to lose sometimes many years of training and gaining experience since the average trader, the relatively systematic and regular profits pays off after 3-5 years and most people want to succeed quickly, here and now. To be able to earn a relatively stable income, you must first achieve a high success rate. To acquire knowledge and understanding of the capital markets makes it possible for us to gain knowledge about the world of financing and the processes that affect our lives. In addition, we give us a chance for a really good, challenging and interesting job by having knowledge of these issues.
Forex is not only a means for economic freedom but also personal freedom. Among the larger society (at least the one where I turn into), there is a general perception that people who professionally invest must spend entire days and sometimes nights, in order to effectively earn money. There is nothing further from the truth. There are many opportunities to shop to unite with your passion. The most important thing is to build our individual investment strategy that not only to be compatible with our personality.
New statistics show that during the third quarter of 2016, earned 40% of the traders in the market, which is quite a significant improvement even if we recall the report from the financial supervisory authority at the beginning of the year, which clearly showed that more than 80% of all investors in the foreign exchange market lost.
If you are 20-25 years old and meet the ”master” and have the knowledge and experience needed to systematically make money, you would either need to spend 10 years in the trade, or it becomes not worth it. When you are 30-35 years you will have the best of your life and you will have a unique knowledge and, most importantly, the work you perform will not only be well-paid, but will that make you happy and give satisfaction and true fulfillment.