FOREX IS RANDOM
Have You ever had the perfect trade set-up, the perfect time and the perfect indicator reading and the market still went against You? What most traders don't understand is that forex is a random game of chance where You are constantly seeking an edge. The edge when your set-up fails is to CUT!
The same trade set-up that bought You the fancy car and the great house the last time may move sharply against You this time. Pros cut bad trades all of the time, because they understand that this is a game of chance. In order for my trade to work out just right, I have to have some bigger players agree with my analysis or loads of other people to see the opportunity that I see and jump aboard with their hard earned cash. If the majority of the money doesn't agree, the market will move against me; that is why it is so important to protect your profits when your set-up fails because it will.
The advantage of the pro is the discipline it takes to be consistently profitable. I might see a set-up and think I have reached the bottom and buy, but the bank with $700,000,000,000 may think, the market can drop another 70 pips. Who do you think the market is going to respond to??????????
In a situation like the one above, most traders will try to re-analysis the set-up, go to higher, lower time frames, and find reasons why they are right, while the market continues to move against them. Before the day's end they have a margin call or they are so far down they don't dare cut; then that sickening uneasy feeling creeps in. That feeling that says, 'I can't afford to lose this money, I have to pay my mortgage'. The wise trader says 'Oh hell, this ship in sinking fast, I'd better jump and swim ashore and wait for the next ship" At the end of the day the bank that started out with $700,000,000,000 ends the day with $700,067,893,972, because so many traders refused to except the fact that THERE ARE NO ABSOLUTES IN TRADING! The people in the bank end the week with fat paychecks, take nice trips, and live the lives most only dream about. They live these lavish lifestyles because so many traders 'who have to be right all of the time' are constantly contributing into their wealth pool. It is true that the rich keep getting richer, and it is especially true in forex. QUIT CONTRIBUTING TO THEIR FAT, FANCY LIFESTYLES AND START CONTRIBUTING TO YOUR OWN!!!!!
Imagine if You will that at the top You have big banks and mega traders who have the power to influence the market in ways that You and I can't imagine doing. Now imagine that these same people have vacuum cleaners in the average traders pockets. They lead traders like sheep to the slaughter with what seem to be good trade set-ups, then they turn the vacuum on and that's it. The traders who didn't cut the bad trades are now broke and miserable, while the banks and mega traders are fat, rich and happy.
Trading is not a right and wrong game, it is a shopping game. You have to spend money to find the best deals. If the deal fails, stop your money flow into it and look to buy a better deal. No man in his right mind would continue to send someone $100.00 every month to get the grass cut, when the grass man never shows up, yet traders pay good money for positions that are not serving them.
QUIT PAYING TO BE WRONG AND BROKE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Your positions should be making You fat, rich and happy!
All You can really do in forex is look for the odds that give You an advantage and grab'em. If You grab and find that Your hand is full of air instead of paper, You'd better cut that trade and follow the money trail. The discipline to follow good trading rules will give You the advantage in forex!
YOU CAN DO THIS (^_^)!!!!!
Our priority is EUR/USD Short since 1.3773, but ...
We must to remember that somebody always wants to take our money.If 1.3575 would be broken substantially, it would go more Long.So, please manage your investments very carefully.
Analisis 21 September
GU (D1)
Status : Not Valid
Trend : Downtrend + major correction
Entry : Buy Stop @ 1.5756
Filter: BDB Daily + Bullish Divergence H4
TP1 = 1.5826
TP2 = 1.5946
TP3 = 1.6043
Stop Loss @ 1.5628
Status : Not Valid
Trend : Downtrend + major correction
Entry : Buy Stop @ 1.5756
Filter: BDB Daily + Bullish Divergence H4
TP1 = 1.5826
TP2 = 1.5946
TP3 = 1.6043
Stop Loss @ 1.5628
I got 3 Entries. No more for me... you can take more on your own risk.
I'll hold all Entries for weekend.EUR/USD Sell near 1.3937GBP/USD Sell near 1.5875AUD/USD Sell near 1.0331NZD/USD Sell near 0.8257USD/CAD Buy near 0.9841USD/CHF Buy near 0.8633
Analisis 15 September
GU (D1)
Status : Not valid
Trend : Downtrend + major correction
Entry : Buy Stop @ 1.5818
Filter: BDB Daily + Bullish Divergence H4
TP1 = 1.5882
TP2 = 1.5991
TP3 = 1.6080
Stop Loss @ 1.7503
Status : Not valid
Trend : Downtrend + major correction
Entry : Buy Stop @ 1.5818
Filter: BDB Daily + Bullish Divergence H4
TP1 = 1.5882
TP2 = 1.5991
TP3 = 1.6080
Stop Loss @ 1.7503
Analisis 15 September
UCHF (D1)
Status : Not valid
Trend : Uptrend + major correction
Entry : Sell (0.8798 - BDB D1)
Filter: BDB Daily + Divergence H4
TP1 = 0.8462
TP2 = 0.8319
TP3 = 0.8176
Stop Loss @ 0.8931
Status : Not valid
Trend : Uptrend + major correction
Entry : Sell (0.8798 - BDB D1)
Filter: BDB Daily + Divergence H4
TP1 = 0.8462
TP2 = 0.8319
TP3 = 0.8176
Stop Loss @ 0.8931
Analisis 15 September
EU (D1)
Status : Not Valid
Trend : Downtrend + major correction
Entry : Buy (1.3695 - BDB D1)
Filter: BDB Daily
TP1 = 1.3897 (Target Hit!)
TP2 = 1.4022
TP3 = 1.4146
Stop Loss @ 1.3496
Status : Not Valid
Trend : Downtrend + major correction
Entry : Buy (1.3695 - BDB D1)
Filter: BDB Daily
TP1 = 1.3897 (Target Hit!)
TP2 = 1.4022
TP3 = 1.4146
Stop Loss @ 1.3496
ALGORITHMIC TRADING (GUEST BLOG)
What is algorithmic trading?
Trading with an algorithm is where traders take their trading strategy and put it into code, allowing a computer to execute that code 24 hours a day while the market is open. By default, trading manually is restricted to waking hours (often aided by the use of Red Bull, in my case), and is limited to the number of charts and currencies the trader can watch.
Naturally, the amount a single person can watch, monitor and trade is quite finite. But by utilizing an algorithm traders can have computers do in microseconds what would take humans hours to manually, thereby opening up a new supply of trading opportunities (not all of them being good opportunities, mind you).
Meta4 trading platform allows traders to create their own automated forex trading programs in what is called an “Expert Advisor.” The use of the software is free for all traders - demo and live.
The rise of the algorithm
According to my research, in 2004 a whopping 98% of trading in the foreign exchange market (or forex for short) was manual trading; but by 2010 only 55% of trading volume came from a human. The forex market is a fast moving market that is open 24 hours a day, and I think this huge influx in algorithmic trading is traders trying to capitalize on these factors.
Some exchanges here in the States have tried to embrace algorithmic trading, but have met resistance. My research concluded that forex has been more friendly to algorithms simply because the market has no central exchange to regulate where a trade comes from.
The Pros and Cons
One of the benefits of algorithmic trading in any market is the increase of liquidity. Algorithmic trading typically places more trades than a human naturally would, which opens up more liquidity for everyone: human and machine alike. But with this comes a change in volatility. An increase in volume naturally leads to increased volatility. But some suggest algorithmic trading might actually lower market volatility as algorithms aim for optimal execution at minimum cost.
What’s on the horizon?
One very important lesson from my college years is this: the more we learn, the more we learn we don’t know. My research into algorithmic trading has answered some questions, but seems to have opened up even more. For instance, what is the future of algorithmic trading, and how will it impact my trading? I’m currently researching this topic, and plan on releasing another infographic soon with my findings. Stay tuned: more good stuff is on the way!
For more information on Algorithmic trading, Here is a programming link: http://www.ibfx.com/Education/Programming, or You may contact Adam at <adam.evans@interbankfx.com>
Analisis 13 September
Gold (D1)
Status : Success!!!
Trend : Uptrend + major correction
Entry : Sell Stop @ 1822.80 (SOA D1)
Filter: BDB Daily + Bearish Divergence
TP1 = 1750.09 (Target Hit!)
TP2 = 1698.85 (Target Hit!)
TP3 = 1646.61 (Target Hit!)
Stop Loss @ 1885.00
Status : Success!!!
Trend : Uptrend + major correction
Entry : Sell Stop @ 1822.80 (SOA D1)
Filter: BDB Daily + Bearish Divergence
TP1 = 1750.09 (Target Hit!)
TP2 = 1698.85 (Target Hit!)
TP3 = 1646.61 (Target Hit!)
Stop Loss @ 1885.00
Analisis 13 September
GU (D1)
Status : Not Valid
Trend : Downtrend + correction
Entry : Buy Stop @ 1.5884
Filter: BDB Daily + Bullish Divergence H4
TP1 = 1.5932
TP2 = 1.6032
TP3 = 1.6112
Stop Loss @ 1.5768
Status : Not Valid
Trend : Downtrend + correction
Entry : Buy Stop @ 1.5884
Filter: BDB Daily + Bullish Divergence H4
TP1 = 1.5932
TP2 = 1.6032
TP3 = 1.6112
Stop Loss @ 1.5768
Hold all EUR/USD Entries Short as much as you can.
Very strange feelings. Everybody loosing money. Stock market, realtor and all investments going wrong, but we're making huge amount of money.
Hold all EUR/USD Entries Short as much as you can.
Yesterday Call was:I would Sell EUR/USD 1.4047.It means FOREX is amazing kind of business. We're making money always in all conditions of market.
We did Sell EUR/USD. No more Entries. Hold EUR/USD Short as much as you can.
It was our Update:EUR/USD Sell near 1.4097GBP/USD Sell near 1.6053AUD/USD Buy near 1.0537NZD/USD Buy near 0.8253USD/CAD Sell near 0.9897USD/CHF Buy near 0.8497
It was 09/01 Update:
EUR/USD Sell near 1.4297GBP/USD Sell near 1.6197AUD/USD Buy near 1.0667NZD/USD Sell near 0.8577USD/CAD Sell near 0.9799USD/CHF Sell near 0.8077
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