The Zurich Axioms by Max Gunther isn?t a book just about forex trading it?s a book that puts you in the mood to make money and lots of it! Here I have selected some of my favorite wisdom from the book which if you follow, can turn average gains into extraordinary gains?
Max Gunther starts with statement about Switzerland that sets 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 greatest speculators and some of them wrote the Axioms. Some of the views are against the majority opinion as the book states but you need to:
?Disregard the majority opinion. It is probably wrong?.
Of course it is very few traders get rich and many of the so called wisdoms you accept wont help you get rich and let?s start with the first one.
?Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough?
There is nothing wrong with being a bit worried, as it means you are playing for:
?Meaningful stakes ? if an amount is so small that its loss won?t make any significant difference, then it isn?t likely to bring any significant gains either?
How true ? how often do you hear you should only risk 2% on a trade? ? well that won?t make you much.
You can risk 10 ? 20% or more, if you have the odds in your favor.
Just be patient and wait for the right opportunities. This isn?t being rash this is waiting and taking calculated risks at the right time and hitting them hard.
I know traders who trade less than one a month but make triple digit gains ? How?
They are patient, wait for the high odds trades and hit them hard.
?Resist the allure of diversification?
Another well known wisdom but wont help you make a lot of money. You have a good trade so why dilute it with low odds trades that can cut your profits? If you are trading a small FX account focus on one area and hit it as hard as you can when the opportunity arises
?Human behavior cannot be predicted. Distrust anyone who claims to know the future, however dimly?.
True ? but how many traders don?t have the guts to do their own trading and trust guru?s, mentors and scientific theories of market behavior and worthless forex robots and get beat ? the vast majority.
What the Zurich Axioms teaches you and why its such a great book is:
It persuades you not to be frightened of risk ? but to love it.
You take risks at the right time to make a lot of money and that?s a fact.
It?s a fact in forex trading that most traders hate risk and try and restrict it so much they have no chance of winning and all they do is take small loss after loss until their wiped out.
It also encourages you to take charge of your own destiny and be alert for opportunities and investment traps.
Many will scoff at the above and say its not accepted wisdom maybe not but the people who devised the Axioms got very rich using them and you can to ? simply get hold of a copy of this book and be prepared to amused, as well as inspired, to start taking calculated risks, at the right time and hitting them hard.
Forex involves risk and it?s the way you manage risk, which will determine the destiny of your account.
Of course, you can run with the losing pack or you can take a different, more exciting and more rewarding route to currency trading success.