This week, Miami-based ScorpionFX announced the launch of their new web-site, ScorpionFX.com. And their goal is to give traders a much needed reality-check.
For years, the FX-arena has been known as the most difficult financial-market to master. And this opinion is shared by some of the most respected and influential authorities in the world of finance.
"If you think writing about the fortunes of the stock market is tricky, try getting your arms around currencies." - Bill Gross, co-founder of PIMCO
"Having endeavored to forecast exchange rates for more than half a century, I have understandably developed significant humility about my ability in this area...." - Alan Greenspan, former Chairman of the Federal Reserve
"Explaining the yen, dollar and euro exchange rates is still a very difficult task, even ex-post." - Kenneth Rogoff, Economics professor at Harvard and former IMF Director of Research
Given this reality, it is no wonder why so many FX-traders fail. In fact, a common statistic amongst the FX-community is that 95% of traders lose money. Making this by far, the highest failure-rate of any profession.
According to Aaron Jensen (co-founder of ScorpionFX), the problem is that most people have the wrong impression about trading. And they simply don’t realize what they’re getting themselves into.
He explains: “A lot of people think that trading is like what they see in the movies or on TV. They see these guys on Wall Street making millions of dollars, living in mansions and driving Ferraris. So they get the impression that trading is an easy way to get rich. Or worse, they believe the nonsense put-forth by so many brokers, who want you to believe that trading is simple.”
According to Jensen, these factors create false expectations. And new traders simply aren’t prepared for the steep learning-curve and the difficulties they will face. He says: “It takes years of hard work before most traders can become consistently profitable. But by the time they reach this point, most traders have already lost thousands of dollars, sometimes millions. So the vast majority of people simply drop-out along the way, with nothing to show for it.”
Jensen clearly understands the dynamics of the market. For five years, he worked for one of the first high-frequency quant-funds in the world. And his company has traded profitably for the last 10 years. Including through the financial crisis of 2008.
Their best day this year was on January 16th. The same day that the SNB removed the floor against the Euro and sent shockwaves through the financial system. Large banks and hedge-funds around the world lost billions that day, including Citigroup, Barclays and Deutsche. But Jensen’s firm was properly hedged and made several thousand pips during the event.
However, their most memorable achievement involves an extraordinarily long winning-streak. He explains: “In a two-year period between April of 2012 and May of 2014, one of our strategies went on the most incredible winning streak we have ever seen. By the time it was over, the strategy had produced a total of 1426 consecutive winning trades. And had not suffered a loss in over 25 months.”
This has already been verified by an independent third-party. And Jensen is hoping to get it into the Guinness World Records, for their next publication in 2016.
He goes on to say: “There are no shortcuts in the financial markets. We can teach you the industry-secrets and show you how the market really works. We can even provide you with a roadmap for success. But it is ultimately up to you to put in the time and effort.”
The company’s new site (ScorpionFX.com) offers essential trading advice and key-insights that you won’t find anywhere else. As well as fundamental market-principles that every trader needs to know. Best of all, it is absolutely free.
1001 Brickell Bay Drive,
Suite 2701, Miami FL. 33131