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#1 08-05-2020 16:22:34

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2855
Website

What do forex traders really want?

What do forex traders really want?


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According to a study by Citigroup 6 years ago, 85% of forex traders think they can get positive monthly returns. Regarding the magnitude of these returns, 42% of traders think they can make more than 9% per month, which gives a ridiculously high compound annual performance of 309% return on investment (ROI).

Despite these high expectations, by comparison, individual forex traders expect lower results than die-hard gamblers who typically expect to either triple or quadruple their money every time they walk into a casino.

Citigroup's study also reports that 49% of all forex traders enjoy volatility while believing that the currency markets are liquid enough to offer multiple trading opportunities.

In practical terms, traders are not only sure they can identify worthwhile opportunities, but they are also so confident of their abilities that they are ready to borrow money (leverage) to trade larger volumes and so generate even greater returns over time.

On many occasions, they are ready to trust Expert Advisors, also called "automated strategies", based on technical analysis and to invest their capital, perhaps because individual traders believe that future events are based on past results.

The importance of the trader's personality

People who trade currencies want to feel like (and appear like) Wall Street traders: risk takers, high achievers, geniuses and, more broadly, successful people.

They want to answer the question: "Do you really want to be a trader?" with a daring "Hell yeah!". These people tend to be so daring that they imagine themselves sharing traits with fictional characters like Eddie Morra (played by Bradley Cooper) in the 2012 Limitless movie or Gordon Gekko (played by Michael Douglas) in the Wall Street film.

The lively bon vivant who wears jeans and a leather jacket, a cool sniper who drives fast cars and travels by private jet. This YOLO approach, which makes it possible to earn "easy money" by trading anytime and anywhere, is what attracts new traders to trading, especially the currency markets, given its long hours and brokers offering mobile trading platforms.

Seniors are by far the biggest segment in trading, with 44% of all traders between the ages of 26 and 35, according to a Broker Notes study in 2018.

By conceptualising the above and validating these points through several discussions with professors who have extensive trading experience, we can conclude that people trade currencies for many reasons.

Their motivation is focused on short-term profits with the ultimate intention of spending their earnings on frivolous activities, including vacations and cars that depreciate quickly. Spending habits vary, of course, from person to person, but the underlying theme is that materialism and the pursuit of luxury are the main motivations for new traders.

This conclusion was validated by an in-depth market study carried out by casinos in recent years, which have tried to find better ways to attract gamblers to their poker tables and to keep their activity as long as possible.

Casinos have discovered that by promoting a particular lifestyle in addition to offering specific technical tools, it is possible to attract players to bet more, and more often. The lifestyle that seems to be the most effective (at least for casinos) is the image of life on the brink, like a "torchbearer".

Oddly enough, individual traders want to be compared to casino winners. Anecdotal evidence suggests that individual traders believe casino winnings are due to luck while trading success is attributed to talent - so there is an inherent expectation that the trader's talent will be respected and celebrated by others, as is the case for professional athletes.

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"Anything worth having is worth going for - all the way." - J.R. Ewing

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#2 13-05-2020 10:47:29

Scarlett rose
Member
Registered: 12-04-2020
Posts: 10

Re: What do forex traders really want?

Forex market is the place where sky is the limit you can earn profit from this market and become rich by using your capital amount, knowledge and skills. Other traits of traders are so well mentioned above.

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