This is my first blog post on fxstreet so I thought I would start it off with my favorite subject.
We've all heard it said that it takes money to make money but what exactly does that mean?
Well when I was 30 years old I saw this old beaten down hotel on the lakeshore for sale and I wanted to buy it because I knew that one day it would be developed and worth multi millions. Sure enough 6 years later there stood a 34 story luxury condo on that location.
What if I told you that the same thing happens each day in the Forex markets ?
What if you knew that there was a seller 30 pips higher and if you bought up all the liquidity between here and there that that seller would take the position off your hands at a guaranteed profit. That would be amazing right ? but WAIT it would take 200 million plus leverage/margin of 400:1 to move the market 30 pips and thats assuming that you know the size of the order book and the liquidity between the price move.
That is why it takes Money to make Money !
If you had a spare 200 million and you could get the leverage to move the market 30 pips and you knew the liquidity between the prices then you could make a lot of money a lot of the time.
So your asking how does that help me as a trader.?
Well the answer is there are players out there that do this every day and when you know what to look for you can join their party and make money right along with them.
I hope you join me this coming Thurs at 10 am for my first ever live webinar here on fxstreet (check the schedule) and I will discuss this topic at length.