The Zurich Axioms by Max Gunther are not just applicable to forex trading there for any speculator who wants to make big gains. This book is simply one of the best ever written on making money lets look at it in more detail.
Max Gunther states some interesting facts about Switzerland that will make you think and set the tone of the book.
“Consider the puzzle of Switzerland. This ancestral home of mine is a rocky little place about half the size of Maine. It has not one inch of seacoast. It is one of the most mineral-poor lands on earth. It possesses not a drop of oil to call its own, barely a bucket of coal. As for farming, its climate and topography are inhospitable to just about everything”.
Yet the Swiss are among the most affluent people in the world. How do the Swiss do it”?
Quite simply over the years Switzerland has produced some of the world’s cleverest investors, speculators, and gamblers and the book will help you get into the mindset of these traders.
The traders who wrote the Axioms got rich following them so here are 12 to boost not just your FX profits but profits in anything you speculate in.
1. “Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough”.
Today in investing its fashionable to keep risk small but fact is most investors try so hard to restrict risk they actually create it – if you don’t take calculated risks you won’t win and if you don’t risk enough you won’t win big.
2. “Always take your profit too soon”.
Always get out to soon the bulk of traders simply stay in to long let the risk reward go against them and give back their profits.
3. “When the ship starts to sink, don’t pray. Jump”.
When your wrong – that’s it get out and don’t come back.
4. “Human behavior cannot be predicted. Distrust anyone who claims to know the future, however dimly”.
One of my favorites and true. Today people will tell you they can predict the future and in FX trading it will cost you a few hundred dollars – get real. Markets are not scientific and cannot be predicted in advance.
5. “Chaos is not dangerous until it begins to look orderly”
Markets are chaotic by nature as humans are involved if they look to easy or orderly get worried there could be a big change on the cards.
6. “Avoid putting down roots. They impede motion”.
Don’t see the currency see the opportunity and this changes all the time don’t fall in love with one pair when there is a better opportunity elsewhere.
7. “A hunch can be trusted if it can be explained.”
Keep your emotions out of trading if you fall victim to them you will trade on hope rather than reality
8. “It is unlikely that God’s plan for the universe includes making you rich”.
No one can make you rich not even god! And neither can anyone else – its all up to you to take charge of your destiny no blaming your broker, the news or the guy you bought an e-book from. Take responsibility for your actions.
9 “Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic”.
If you are not confident about what you do and stick with your plan through the bad times and stay in the game you will lose. Confidence comes from self knowledge of who you are and what you are doing and you need it to succeed.
10 “Disregard the majority opinion. It is probably wrong”
Of course it is – as the bulk of traders lose but how many traders try and follow news stories or opinions and don’t come to their own conclusions? The vast majority don’t join them.
11 “If it doesn’t pay off the first time, forget it”
Don’t indulge in revenge trading or continuing with a system that’s plainly not working. Perseverance is great but only if the logic is soundly based.
12. “Long-range plans engender the dangerous belief that the future is under control. It is important never to take your own long-range plans, or other people’s, seriously”
How many times have I seen traders make neat plans 2 years forward about how they are going to compound up to a huge sum?
Loads of times but the markets don’t see it that way. There in a constant state of flux like the world we live in and you need to take each small step as it comes.
The book has much to enjoy but what I like about it is that it tells you to things that most guru’s or writers frown upon but the guys who devised these Axioms got rich – its not a book on theory it’s a book on mindset and if you want to bet and you want to win in anything (including forex) get this book and read it and make it an essential part of your forex education.