PipStop

I've always maintained that self-directed trading is not for everyone. Many of the retail Forex brokers out there I'm sure will tell you the same thing, from FXCM to FX Solutions to InterbankFX, etc., who all contradict themselves when they say open an account with a minimum deposit (usually $300 or so).

That would indicate to me that they're looking for anyone willing to experiment and open an account. I'm not criticizing that approach as there is more to a brokers target audience than what I've shared above.

I was speaking with Kevin from CitiGroup which has recently waded into the retail FX arena and Citi's philosophy is starkly different. There's a higher minimum, a lower leverage, and a target towards experienced traders.

Which brings to mind the overall view on trading. So many traders get into the Forex arena (because it's hot) and think that there must be some course, signal, system, fund that can pave their road to riches with gold.

It's enticing to Google Forex Riches and not want to get sucked in by one "amazing offer" after another.

There is so much more to trading than signal, though. I've mentioned the importance of the mind before, but there are lots to the mechanics of trading that can cause failure.

I was talking to a trader, Mon, yesterday about a hypothetical situation of how a trader can have a 90% winning rate, but still be a losing trader. It happens often - the rules of leverage and money management never made it to the table of importance in the traders mind.

So Mon sent me the following of the types of investors/traders there are - which categories do you fall into?

I have thought about this and there only the following ways you can trade/invest your money.

--You can give the money to a managed fund
--You can subscribe to a signal service
--you can buy a software program
--you can have server-based auto trading system (like SystemRunner)
--you can be a self-directed trader