A Bear Chased Two Hikers.

A Bear Chased Two Hikers.

One hiker, while being chased, stopped to put on running shoes.
As he was changing out of his hiking boots, his companion looked at him in horror and exclaimed, “What in the world are you doing? You’ll never outrun the bear if you stop now!”
Calmly, the other hiker said, “I don’t have to outrun the bear. I just have to outrun you.”
The forex market offers more opportunity for fast financial success – and financial ruin – than almost any other market. The get-rich crowd has always been attracted to it. This crowd includes speculators, trading novices, retirees, and professionals looking for a way to get out of debt, increase the excitement in their lives, or simply get rich really fast.
These are the people who you will be taking money away from. These are the people who will be eaten by the bear. You don’t have to outrun the bear (the entire market). In fact, that’s impossible. You can’t beat the entire market. Those of you who try will learn fast that the market has no mercy, can outrun anyone, and shows no mercy.


The Four Groups

There are four groups in the forex market. There are the novice traders – the greenies, the ones who try to outrun the bear and lose every time.
In addition to the novice traders, there are three other levels of participation in the forex market: the dealers, the institutional traders, and the advanced traders.
The dealers are the most powerful and they make the market, setting prices and putting together deals.
The institutional traders work in banks, wire firms, or government agencies. They trade huge amounts of money at a time, and the size of their trades gives them enormous power.
Next, there are the advanced traders. This group is comprised of people from all across the world, sitting in smaller investment firms, offices, or even their homes. You can be a part of this group. In some cases, the advanced traders are the smartest group – trade for trade – than any other group. Because they don’t move a lot of money on each trade, they don’t have as much power as the institutional players. Because their trades are brokered by the dealers, they’ll never have absolute trading power. But, because there are so many novice traders – the advanced traders have plenty of people that they can outrun. Your goal as a forex investor is to aggressively take money out of the pockets of the novice traders.
Don’t feel bad about that. Someone’s going to take your money along the way, and it’s going to teach you, very quickly, lessons that can only be learned through failure. So, every time you take money from a novice trader, just remember: you’re teaching him a valuable lesson. After a while, you might even enjoy watching your hiking companion being eaten by the bear.

Source: W.Rob Booker & Co.- Strategy 10: Low Risk High Return Forex Trading