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Why Most Forex Traders Fail... LEVERAGEWay too many traders trade with very little capital and they do this because their brokers allow them to by offering them insane amounts of leverage. We really don't understand it because you would think that these brokers would want their clients to succeed in order to continue placing trades which yields the broker revenue from commissions and spreads. It is inevitable that with such little capital ($50-$100) these traders will go bust and blow their accounts, especially if they are allowed to take position sizes of upwards of 500 times their account value. These retail traders have been conditioned to believe that this is the way Forex trading is and quite frankly it isn't. The most successful Forex traders in the game use little to NO leverage at all and they only return a small consistent return of 1-3% per month. It seems impossible to make money with such small returns but if you actually take the time to break out a calculator and calculate how much such a return yields over extended periods of time like 5 years or 10 years you will see it is immense. Take $10,000... in 8 years with a consistent 5% a month return... that $10,000 will become $1,000,000. So please guys read through the information on the chart. It is long but it is very valuable! Tune in LIVE on YouTube goo.gl every Monday, Wednesday, and Friday at 7 P.M. Eastern Standard Time to learn how to trade the Forex market like a professional! Follow us on our social media: Website: goo.gl Google+: goo.gl Twitter: goo.gl Instagram: goo.gl Snapchat: Unique4xPro TradingView: goo.gl
Education
by UnknownUnicorn261897
32
How to Infer Currency Strength Without ANY IndicatorsToday I received a question regarding what indicators or websites to use to infer and compare the strength between related currencies. I responded with a long winded explanation as to why it is not necessary to use indicators or websites to infer such information because it can be realized solely through price action. If we look at the daily range today on GBPUSD, EURUSD, and EURGBP which resulted from the huge miss on the NFP numbers, we can gauge the strength between the EUR and the GBP versus the dollar as well as the EUR vs the GBP. In looking at the daily ranges of these pairs we will first notice that they all had a strong move to the upside. This of course being due to the weakness and downside movement on the dollar ultimately resulting form the miss on the NFP number. Therefore right off the bat we can infer that foreign leading currency pairs should be strong against the dollar today and we can expect to see pairs like the GBPUSD and EURUSD moving to the upside. That is exactly what we see here... price moved as expected. Now... what if you want to compare the relative strength of the GBP vs the EUR as it relates to the dollar weakness. Well then we will need to bring the cross pair EURGBP into the picture. The EURGBP cross pair will tell you how strong the EUR is vs the GBP. We see that the daily range of the EURGBP cross pair is roughly 90 pips and as of right now this pair has held that range indicating the EUR strength that we see clearly on the EURUSD. The daily range of the EURUSD is roughly 215 pips and it too has held this range indicating its strength. Since most of the day's trading is done for being that it is a Friday we can expect to see these prices hold through to the close of the day. So we have concluded now that the EUR is for sure strong right now against the dollar and we are thinking since EURGBP is so strong as well that this rally in the GBPUSD might be misleading and the GBP might not be all that strong right now. By looking at the GBPUSD we can see that it's daily range was roughly 160 pips but as of right now it has already give up roughly 1/3 of that range and price is showing signs of continued downside movement. Seeing this we can conclude that the EUR is certainly stronger than the GBP right now and going into next week if we continue to see upside movement on EURUSD and EURGBP we can expect to see downside movement on GBPUSD. We hope you found this to be insightful and if you did you should definitely check out our YouTube channel goo.gl/g8sWn3 where we do live streams every Monday Wednesday and Friday at 7 p.m. eastern standard time. Enjoy your weekend!
Education
by UnknownUnicorn261897
5
Learn How to Follow the Overall Trend and You WILL Succeed!Hi traders, here at Unique4xPro we are firm believers that price action trading is the way to go in these markets and for that reason we do not use any indicators. We base our trades solely on price action and we only trade in the direction of the overall trend to ensure that all of our trades are backed by the banks and institutions that are backing the direction of the trend with huge amounts of money. We hope you find this useful and please comment if you have any questions... We will be happy to answer! You can also learn a lot from our YouTube live streams which we do at 7 P.M. E.S.T. every Monday, Wednesday, and Thursday. All of our streams are automatically uploaded to our channel so that they can be watched back: www.youtube.com
Education
by UnknownUnicorn261897
15
Key Heuristics and Biases in Trading - Educational PieceThere is an extremely famous psychology paper written by Daniel Kahneman and Amos Tversky named ‘Judgement Under Uncertainty: Heuristics and Biases’ (psiexp.ss.uci.edu) (Kahneman won a Nobel Peace Prize in 1992 for his work in the field, specifically on prospect theory) which explores the decision making process. As trading requires decisions to be made constantly – stop loss adding, lot size, whether a trade is right to take etc – I think a quick write up would be highly applicable. Essentially, there are several ‘heuristics’ or ‘biases’ which I will attempt to put into a trading context. 1) Reliability . Making sense of data on the spot is a difficult task to undertake. When you look at a chart, you are looking at a representation of the market and not the actual market. Adding more and more indicators causes the reliability of this data to further decrease, possibly leading to a distorted view (however, if you are profitable with indicators then that is all that matters). 2) Representation . We normally feel that if a pattern is forming that it will play out in the way we expect. When back testing, you may look for data to represent the notion you have about a certain set up and ignore the set ups that have failed, therefore leading to a skewed view of that strategy. Indicators represent a potential set up and not what is actually occurring – indicators are used to fit a concept in your head. The fact that something is more representative does not make it more likely to occur. 3) Anchoring . Do you remember that month when you did fantastically and the next month you lost 5% of your account under the belief you could continue your run and then possibly ditched your strategy to start from scratch? This is called anchoring – you place some meaning on a certain set of results with the thought that the initial point is meaningful. You will face losses. Maybe even a quarter where you make no money. On the flipside, you may triple your account. The market is impartial to you, your strategy and your money. 4) The Gambler's Fallacy . When an event occurs more or less is a short time period, you may believe that it will happen less or more in the future. As said before, the market is impartial. Past events do not change the probability of future events occurring. 5) Hindsight bias . ‘I knew that was going to happen’. This is reasonably self explanatory and I think everyone has faced this once or twice (maybe nearer 1000) times in their trading career! Automated traders do not have the problem of biases as the emotion is taken out of the trade, which is why possibly developing an algorithm can be hugely beneficial if you have a stringent set of rules that you can programme into a computer. There are many more biases. Which have you noticed in your trading?
Education
by DavidBelleFX