The Basics of Trader Talk
For those unfamiliar with this form of currency trading, the term “trader talk” just described is probably a bit intimidating and almost completely incomprehensible. But for ordinary individual investors, being skilled in this trader talk is worth the effort and quite frankly, the rewards are well worth it. You see, in the currency markets you will come into contact with some pretty sophisticated individuals that have been in this business for years, some even decades. The one thing they have in common is a desire to make money as quickly as possible. This is why most traders will tend to speak only in their own lingo and rarely refer to the terms of any other language.
Just like any other vocation or industry, being a professional currency investor means learning to be able to speak and understand the lingo of the market. And this is precisely what a lot of new traders panic about. They tend to listen to the more experienced traders in the markets, listen to what they have to say about how they made millions of dollars trading forex and ignore the fact that most of these same people, including the top traders, are making hundreds of thousands of dollars every single week. As such, it is very important for someone just starting out in this market to become familiar with the lingo of the trader and what they are saying.
One thing to note about trader talk is that it is usually reserved for those traders that have years of experience and are considered the cream of the crop. Very seldom will you ever come across any kind of trader that was able to learn the trade without having years of practice, knowledge and experience in the markets. It is always the veteran that speaks with the utmost confidence about the market and it is usually them that you will want to listen to. In truth, it is actually the exact opposite. Usually, new traders will try to learn as much as they can and often get so frustrated that they begin to trade without first mastering one or two simple techniques that have been tried and tested by the veterans in the market.