Sunday, February 17, 2008

How To Make Money With A Forex Blackbox

Everybody knows that the holy grail of trading is the possession of a blackbox system that crunches all the numbers and does everything for its owner, who only lives to spend all the cash.
Such a system is a stand alone system that works all the time, never gets tired or complains and right all the time.
Such a system is called a blackbox, because not only is it dark in there, nobody but a few math geniuses knows what went in it. Such a system is secretive, a closely guarded secret because of its value to the owners and its importance to them.
In Forex trading, there are the elephants and the mice. The retail traders are the mice. When they move, the forest hardly rustles. The banks and governments and the biggest hedge funds are the elephants. You know what happens when they move. The whole forex forest shakes mightily devouring many an unsuspecting mice in the process.
You have heard before that 95% of retail forex traders lose money. They are losing it to the banks with their humongous accounts and their hidden blackboxes.
To create a blackbox, you need an exceptional amount of brain power of the right kind, with resources to make it happen. The banks established their own financial Manhattan Projects long ago in other to help them win the trading war.
In trading, you are either right or wrong. The banks with huge amounts of money cannot afford to be wrong often. Case in point, Societe Generale. Billions could be lost. It has happened before, could happen again but it rarely happens.
So blackboxes when done right are awesome. The banks have them, the retail traders don't...or may be they do!
In the world of retail forex, there are a few of them. The red light/green light kinds that thousands of people have bought retailing for $3,000 and more. But do they work?
Here is the difference between a bank blackbox and a retail blackbox- availability. The banks make all effort to not make theirs available to the public. If you had a box like that, you would make it a closely guarded secret because of its value.

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