You may be surprised to learn how easy it is to learn the basics of Forex trading online and how quickly you can make money with Forex, depending on your Forex trading style. This article will explain how incredibly easy it is to learn the basics of Forex trading and how to make fast Forex profits. Keep reading to get instant access to free Forex video tutorials to help you get started.
You may have heard of the Forex market and you may have heard about a lot of people who make money with the Forex trading system. Forex trading is also commonly called currency trading. Many people are looking for ways to make extra income in their spare time and how they can learn Forex trading online. In order to learn Forex trading online you need to first learn the basics and how to successfully trade the Forex market.
If you are looking to invest your hard earned money into the Forex currency market then it is vital that you learn Forex trading online from experts in the field. Thankfully the internet makes it easy for people to find Forex tips at their fingertips with some very powerful Forex trading courses.
When you are looking at ways to learn Forex trading online there are some excellent Forex tutorials online that will explain many things to a beginner Forex trader like how the Forex foreign exchange market works, what Forex technical indicators are, what economic indicators you need to be aware of as a Forex trader, and the huge variety of Forex trading systems and options that are available to every Forex trader.
If you are just beginning your Forex education then it is vital that you DON'T dabble in any Forex trading until you have learn Forex trading online. Many online Forex trading courses understand the big step you are taking into the Forex market and have made this incredibly easy for you by offering free training, demonstrations, Forex tutorials and simulated Forex trading accounts.
The most significant feature when it comes to forex trading is to learn forex trading online so that you comprehend how to trade quickly and successfully. The more you are able to learn in your forex trading training the more understanding of the basics you will have and the more success will follow as a result of your comprehensive understanding of Forex fundamentals.
Locating a Forex tutorial or finding the best Forex trading course online in order to learn Forex at home is incredibly simple. Check out the website below to fast track your Forex education and learn the best Forex business system online with free Forex video tutorials.
Copyright 2007. Are you ready to learn Forex business online with guaranteed winning results? “Fast Education For Fast Forex Profits” is what this online Forex business tutorial is all about. Learn how to start making money trading the Forex market in your first 30 days. Study, practice, trade. Get a FREE trial to practice Forex trading before you risk your own money. Start your beginner Forex education tutorials today in Forex trading at http://www.Best-Forex-Trading-System-Course.com
Article Source: http://EzineArticles.com/?expert=Karin_I_Manning
Monday, August 10, 2009
Free Forex Trading Tip - Forex Global Trading Tips For The Forex Currency Trading System
As the Forex global currency trading system has the highest volatility of any investment market today, it's absolutely vital that you get access to as many Forex global trading tips to fast track your Forex education and to lock in faster Forex profits. This article will reveal free Forex global trading tips for the volatile Forex currency trading market.
The beauty of the internet is that Forex global traders can now go online pretty much anywhere in the world at any time of day or night and get access to free Forex trading tips. With the right Forex currency trading system, Forex traders can reap large profits with Forex global trading.
There are some qualities that a Forex trader should have to become the best Forex trader he or she can be and to lock in faster Forex profits.
It is absolutely vital that you use proven strategies when buying or selling in the Forex global currency trading system. The best way of achieving this is by consulting reputable Forex charts and graphs that are known to be proven indicators and pivot points to follow when investing in Forex global trading.
Contrary to stock trading, as the global Forex market trades in every currency there is never a threat of insider trading. What separates a successful Forex trader and a consistent Forex loser is the level of their Forex trading education and the fundamentals that they follow in their individual Forex currency trading system.
The more that you can educate yourself about the currencies you are trading in the global Forex market the more accurately you will be able to predict the way these currencies will move and the more profits you will be able to reap.
The most savvy Forex traders understand that the best Forex currency trading system is the one that they have perfected and stuck to, with no exceptions. By creating your very own individual Forex currency trading system and sticking to it you will be virtually able to put your Forex global trades on autopilot as you simply follow the Forex currency trading system that you have already created and that has been proven to work.
Margin trading is a very easy way for Forex beginners to lose their money fast. Don't even venture into this Forex currency trading system until you have perfected your own strategies and know exactly what you are doing.
Forex currency trading is not risk free. It is critical that you bear in mind the volatility of the Forex global currency market in combination with what is going on politically and economically in many countries around the world.
Check out the website below to fast track your Forex education and learn the best Forex business system online with free Forex video tutorials.
Copyright 2007. Are you ready to learn Forex business online with guaranteed winning results? “Fast Education For Fast Forex Profits” is what this online Forex business tutorial is all about. Learn how to start making money trading the Forex market in your first 30 days. Study, practice, trade. Get a FREE trial to practice Forex trading before you risk your own money. Start your beginner Forex education tutorials today in Forex trading at http://www.Best-Forex-Trading-System-Course.com
Article Source: http://EzineArticles.com/?expert=Karin_I_Manning
The beauty of the internet is that Forex global traders can now go online pretty much anywhere in the world at any time of day or night and get access to free Forex trading tips. With the right Forex currency trading system, Forex traders can reap large profits with Forex global trading.
There are some qualities that a Forex trader should have to become the best Forex trader he or she can be and to lock in faster Forex profits.
It is absolutely vital that you use proven strategies when buying or selling in the Forex global currency trading system. The best way of achieving this is by consulting reputable Forex charts and graphs that are known to be proven indicators and pivot points to follow when investing in Forex global trading.
Contrary to stock trading, as the global Forex market trades in every currency there is never a threat of insider trading. What separates a successful Forex trader and a consistent Forex loser is the level of their Forex trading education and the fundamentals that they follow in their individual Forex currency trading system.
The more that you can educate yourself about the currencies you are trading in the global Forex market the more accurately you will be able to predict the way these currencies will move and the more profits you will be able to reap.
The most savvy Forex traders understand that the best Forex currency trading system is the one that they have perfected and stuck to, with no exceptions. By creating your very own individual Forex currency trading system and sticking to it you will be virtually able to put your Forex global trades on autopilot as you simply follow the Forex currency trading system that you have already created and that has been proven to work.
Margin trading is a very easy way for Forex beginners to lose their money fast. Don't even venture into this Forex currency trading system until you have perfected your own strategies and know exactly what you are doing.
Forex currency trading is not risk free. It is critical that you bear in mind the volatility of the Forex global currency market in combination with what is going on politically and economically in many countries around the world.
Check out the website below to fast track your Forex education and learn the best Forex business system online with free Forex video tutorials.
Copyright 2007. Are you ready to learn Forex business online with guaranteed winning results? “Fast Education For Fast Forex Profits” is what this online Forex business tutorial is all about. Learn how to start making money trading the Forex market in your first 30 days. Study, practice, trade. Get a FREE trial to practice Forex trading before you risk your own money. Start your beginner Forex education tutorials today in Forex trading at http://www.Best-Forex-Trading-System-Course.com
Article Source: http://EzineArticles.com/?expert=Karin_I_Manning
Sunday, August 9, 2009
Forex Secrets - Developing The "Anti-Chaos" Trading Strategy And Tactics At Forex Market (Part II)
(See beginning of this article under name Forex Secrets - Developing the "anti-chaos" trading strategy and tactics at Forex market (Part I)
It is horrible to imagine what could happen to USD rate at the spontaneous market in this case. At the controllable market of Forex USD rate would fall down just by 1-2%.
I hope that my opponents, who deny the existence of a system controlling Forex market, do remember the elementary economical laws. The spontaneous market is a barometer that establishes the real price of goods on the basis of the demand and supply (in the given case, it is the real rate of exchange of any national currency).
The Episode #2 . The hurricane “Katrina” and the flood in USA on September 7, 2005. USD rate stably increases. Chronicle of events.
As the result of the dam (dike) debacle, several states in USA become submerged. The industry, agriculture and transport network were destroyed. There started panic not only among common inhabitants but among officials of various ranks as well. Hundreds and thousands of people perished. There were cases of looting. Many looters (and, maybe, just desperately hungry and thirsty people) were shot by soldiers of USA army. The government of USA declared this hurricane to be a disaster on a national scale. For the first time a new plan of civic defense was introduced (see “BBC. The total chronicle of events”).
“Katrina” was bringing USA to ruin. Senators from Louisiana asked $250 milliards from the federal budget for getting over “Katrina” after-effects.
Thus, it is an illustrative example of the greatest natural cataclysms in USA in the last decades. Even the poorest country in the world – Haiti – provided the financial help for USA ($ 36 thousands). The help of Ukraine made 1 million of hrivnias , etc.
What did happen to USD rate at the controllable Forex market? Notwithstanding all economical laws and even against the common sense, USD rate increased!
Chart 8.7. EURO/USD pair movement (For view picture see notes in end of article)
Chart 8.8. GBP/USD pair movement (For view picture see notes in end of article)
Brief conclusions for traders .
As I think, the thesis that Forex has turned from the spontaneous market to the controllable one does not need further proofs. Hence, traders must introduce amendments into strategy and tactic of their work at Forex.
What are the conclusions, significant for traders, logically follow from these facts?
Under the new conditions of the controllable market, a trader must not follow the “crowd” (flock). As B. Williams, A. Elder and many other authors have fairly emphasized, the “crowd” pushes the price at any spontaneous market. On the contrary, at the organized Forex market orders must be opened in advance of Consortium’s interests!
I try to find the core of a good sense in each technique of the successful work at Forex . Is it necessary to rediscover the well-known principles? There are many prosperous traders who openly and honestly present their methods of gaining profits at Forex . If their techniques are successful, it means that these authors have a thorough grasp of the problem in its essence.
However, in practice, each of the techniques sometimes brings profits, whereas in other cases it is disadvantageous. And it does not matter, whether this technique is developed by B. Williams or by a not celebrated but a successful trader.
Conclusion #1. It is necessary to clearly delineate the domains where a given technique does work and where it fails (as well as the corresponding reasons). In such a way we can clearly understand what of the method by a given trader is worthwhile to be used – as well as how and when to make advantage of it for our work at Forex .
Conclusion #2 . Your trading system must not be just a mixture (farrago) of various techniques. This rule is especially important for the beginners. After reading heaps of books on Forex , all of them make complaints about “such a mess in their heads instead of enlightenment”.
Conclusion #3. A trader must develop his own trading system. In order to gain profit, the following steps must be taken:
a. you choose just any technique developed by any author-trader (e.g., mine or B. Williams’s, or somebody’s else);
b. you must get used to work with the demo account according to this technique to such extent of automatism that you “sense’ it as your own initial (original) trading system of the work at Forex
c. Only after this you should start to study additional literature. You must clearly see what pointes, “borrowed” from other authors, can help you personally to work at Forex , to improve your trading system for getting extra profits.
Objectiveness of Forex turning from the spontaneous market into the controllable one. The pattern of this process
Any profitable business transits from the spontaneous to the controllable one. It is an objective stage in the evolution of business undertakings.
In each branch of a big and super profitable business the initial stage of the chaotic competitive straggle is already has been passed through (petroleum, gas, ferrous and non-ferrous metallurgy, precious metals, arms traffic, etc.). At present all these areas are definitely divided between the principal participants. That is, there exist certain financially-industrial groupings, well-controllable and protected from intrusion of a concurrent.
The same concerns the biggest and most conservative area of business – i.e., its financial branch, the world market of currency exchange included. Can it be otherwise? Can “Chaos” rule the market where the turnover exceeds $1 trillion per day? Can the biggest banks and governments depend on “Chaos” – i.e., be dependable of the “off-floor” traders – such as me and you? Can these organizations be worried about the direction in which we (traders) could turn the trend of all national currencies at this or that second? It is ridiculous to imagine!
To realize the power of the grouping that has organized the “game” of Forex all over the world, we should refer to the thesis from the journal “Speculator”. In June, 2001 the three biggest dealers at Forex market - Citibank, J.P. Morgan Chase и Deutsche Bank – together with Reuters Group PLC had started up the system Atriax . However, the latter did not meet competition and stopped operations in spring, 2002. The author of the paper just hinted that even the alliance of the 3 biggest world banks could not make any serious competition to Organizer of the “game” at Forex (to Consortium or somebody else).
In this connection, how one can take on trust the principal thesis by B. Williams concerning “Trading chaos” that rules Forex? What’s important, all methods of this author issue from this postulate. The following conclusion by B. Williams’s also raises doubts. He states that trends are created by traders, whereas brokers just realize these trends and place traders’ orders. According to B. Williams, the fact that now trends are made rather “off-floor” than “on floor” (as it was earlier) permits detecting what next will happen at the market (see “Trading Chaos”, Chapter 6).
So, to what extent can B. Williams’s techniques be correct if their basis is principally erroneous? Let us enumerate the fundamental mistakes made in “Trading Chaos”. It is necessary to facilitate understanding of the techniques and practical recommendations given by B. Williams concerning the work at Forex .
1. B. Williams sees Forex as a spontaneous market, uncontrollable by anybody. According to this author, it is chaos but not an organized system that would have its own strategy, tactic, techniques, goals, methods of fraud, etc.
2. B. Williams mentions the pair “trader + broker”. However, unconsciously or deliberately, he has omitted the third participant of this very process. This is banks and the world financial system in general. Surely, this organization will not just take a detached view of the traders’ arbitrary “game” with the basic world currencies (USD, EURO, GBP, CHF, etc.).
Let us now evolve B. Williams’s idea by ourselves. Our aim is to demonstrate absurdity of his “chaos theory” applied to the up-to-date market of Forex.
· How brokers and banks market-makers can pay off profits from traders’ deposits if the traders’ total earnings would be bigger than the market-maker’s profit in this period?
· Being in shoes of market-makers, National Banks, governments of leading countries of the world, etc., how will you conduct yourself on the eve of the news issue? For instance, after the publication of Michigan University Index, USD can “go up” by 150-200 points with respect to all national currencies. That is, in several hours dozens of milliards of USD will be redistributed. Somebody will earn the money, whereas somebody will lose it because of the difference in rates of exchange (quotations).
What will you do in the place of the biggest financial groupings? Would you just be sitting and taking sedative pills? Would you just be trying to guess what steps will be taken by professors of a Michigan University? Will 0.3% be added to the index previous value (91.4) or subtracted from it? What’s important, this “difference” makes milliards of USD – for somebody! Possessing such capitals, would you just be sitting idly and waiting for God knows what? More probably, you will try to make this process controllable and predictable. Rather you will do your best to gain profit with the help of such indices and news. I think you will try to let the others lose their money.
· What does the theory of “chaos” at Forex represent by itself if Organizer of the “game” has trained all traders to act according to the stereotype?
a). To place stop-losses and postponed orders at the same places.
b). If the issued news are better than the prognostication, one must stake on “buy”. Otherwise (if the news are worse than the prognostication), it is necessary to stake on “sell”.
c). If a quicker moving average crosses the slower one upwards, the order must be opened on “buy”. In the case of the downward crossover, the order must be opened on “sell”.
d). In the case of divergence, one must try to work against the trend. B. Williams and other “classics” at least had to mention that it was basically absurd to work like this at the beginning of the trend and in the middle of it.
This is why the given chapter is named “Anti-trading chaos” – to be more precise, it is the anti-trading system.
Further I’ll not dwell on absurdity of the chaos theory by B. Williams when applied to Forex . I hope it is quite clear. Any trader can find a lot of evidences of the fact that Forex is a controllable market. There are also many examples that prove fallacy of B. Williams’s conclusion that traders form a trend and "push" it.
As I get it, the “game” of Forex and its rules in their essence are the following.
1. There is Organizer of the financial game (the Alligator) and participants (victims).
2. Organizer always tries to demonstrate: a). objectivity and honesty of the rules established by himself; b). simplicity of the analysis, predictability of the situations and the possibility of earning money easily and regularly by one of the numerous methods of the analysis (FA, TA, etc.).
3. All participants of the “game” are subjected to the same psychological treatment by Brokers, authors of numerical “classical” works on Forex and analysts via their sites and prognoses. That is, such specialists teach every trader to work as all others in the world do.
As the result, Organizer beforehand knows the traders’ line of conduct in these or those situations. The percentage of “players”-losers is stable – about 90%.
4. A rapid growth in the number of fraudulent machinations developed by Brokers has become a logical continuation of the above-enumerated rules of the given game. Economists from Brokers have quickly grasped that the number 90% of traders-loses is very close to the figure 100%. What for will they send clients’ transactions to the foreign market (the market-maker bank)? In fact, traders will lose all the same! Besides, it is possible to slightly “help” traders in their losing by “knocking down” stop-losses - all traders keep their stop-losses approximately at the same place. In addition, the following tricks can be done as well: the “slippage” (opening of transactions at a price much worse than the price at which the trader wanted to open the deal); computer “pending” at the beginning of the heavy movement in currency pairs. One can give many analogous examples – up to the undisguised fraudulent nonpayment of earned profits to traders.
These centers are also protected from the viewpoint of finances. If in flats the sums of orders of the traders who open transactions on “buy” and “sell” are approximately equal, Brokers can always hedge the difference between “buy” and “sell” with a market-maker under the condition of a heavy trend.
The only thing that cheats from Brokers are afraid of is the unmasking of methods of their work. Really, this will put an end to the afflux of new “victims”!
There are several sure signs of a fraudulent Brokers. In my educational course I enumerate some of such indications. However, here I give only one characteristic (traders should think about it well). If Brokers has one point of spread, you should calculate expenses on the marginal trade, in detail described in all “classical” manuals of Forex . For instance, let it be thought that you open the order for one lot. Forex Brokers supposedly buys EURO to the sum of $ 100 thousands for you. When you close the order, Forex Brokers supposedly transfer EURO to USD again. Thus, if you open 10 deals with EURO/USD pair during a day, your Forex Brokers is supposed to send money abroad and get it back 10 times, buying EURO for USD and v.v. All these transactions must be made exceptionally for you! Is it realistic?
In a next-door bank you should ask the conditions for the transfer of $100 thousands abroad and back. You will learn the cost of the commission for such services and the time required for this transaction (in half a day, the next day, etc.). Here I do not mention the papers that must be prepared for each transfer. I also say nothing about the time required for collecting all signatures.
I wonder, during this period of time what changes will occur in EURO/USD rate as the latter is altering every second?
5. To earn regularly at Forex, you have to master yourself. That is, a trading scheme must be developed. According to this scheme you will work against “generally accepted” rules. As it is already mentioned, these rules are popularized by Organizer of the game at Forex . Sticking to these rules, more than 90% of traders all over the world lose their money.
6. Developing my trading system, I have made use of numerous generally-recognized techniques of the work at Forex (by B. Williams, etc.). Surely, there is a kernel of good sense in any technique that enables earning money – even if in 50% of cases. Therefore, the trader’s task is to differentiate the conditions, under which a given technique can provide profit. It is also necessary to understand where, when and why this technique yields a loss to the trader. Naturally, a trader must use only this first part of the system, where one can gain profit.
7. For the development of your own trading system, you must do your best to organically integrate different techniques, profitable at Forex. Various methods of giving analysis to Forex from different viewpoints do help us to more thoroughly and profoundly understand this market and, consequently, to gain profit regularly.
8. The game of Forex is widely spread all over the world. In addition to speculators, there are other participants in Forex – e.g., individuals who need to exchange currency for their business. All these factors provide an objective opportunity to gain profits bigger (and more regularly) than in any other financial game of the world.
9. Therefore, Forex gives a real opportunity to get into the principally new financial market and to become a really independent. Anybody can be engaged in trading at any point in the world. For sure, a State, much as it would want it, cannot deprive a trader of his production facilities because in this area gaining of profit depends just on one’s techniques and skill.
10. Forex gives you just a chance to earn money. However, not everybody can learn how to gain real profit. Even after having mastered the fundamentals of making money at Forex , a trader needs to learn a lot of additional factors in order to transform his potential abilities into real money. In this connection the following aspects are very important.
a). the psychological stability (the absence of fear and hazard, the ability to work automatically at the subconscious level, etc);
b). a reliable broker (the trader’s profits, being virtual, materialize only if you can convert it into real money at any second);
c). self-perfection via mastering new techniques of gaining profit, learning from an experienced instructor and due to exchanging opinions with other traders;
d). the possibility of obtaining money from the investor for the asset management. This gives the opportunity to proceed from the level of one’s own deposit of several hundreds or thousands of USD to the principally new level of the work at Forex. In this way one can simultaneously reinvest a part of one’s profits into the deposit and to spend money on heightening of one’s own well-being. There is a simple example. At mini- Forex , many traders do not earn a lot of money: even if a trader has doubled his deposit in a month, his profit is small (e. g., by making $100 out of $50). Besides, a part of it he must take off from the deposit for the daily needs. I’ll not give examples of large deposits because the tactics of work with them are principally different – as well as the percentage of profit.
11. Not everybody can cover a distance from the chance (the dream) to its realization – i.e., to making real money at Forex . As a trader, here you work against Organizer of this game, who is the professional. That is, to earn money regularly by taking it away from Organizer, one must become the professional himself. Do not hurry to open a real account at least till the time when you will learn to do the following:
a). As B. Williams himself, in several minutes to clearly see two possible alternatives of currency pair movement at the beginning of each session. Correspondingly, you must develop two business plans, where points of input into the market and output from it must be clearly designated.
b). To work out one’s own tactic of the work with the demo account at Forex to perfection. The aim is to augment the demo account at least 2.5-3 times in a month.
c). To develop the long-term and intermediate strategies (not less than a month and a week, respectively) - as well as the short-term tactic (the intra-day trading session). Acquisition of this knowledge will help you to gain profit.
d). After opening of the real account, at the beginning you must work only with trends (under the conditions of flats you must deal with demo accounts). It is necessary to clearly distinguish one from another at the beginning of trading.
e). You must choose two ally currency pairs and work with them continuously, accumulating experience.
12. There can be reasons why your demo account does not augment regularly (in particular, maybe you are too busy at your main job). In this case, you better forget about Forex ! You must not open a real account there. It means that Forex is not intended for you.
By the way, there is completely nothing humiliating in the inability to make money at Forex . Some people do not understand technology, or literature. Others do not come to know fine arts, politics or sports, etc. Does anybody consider oneself inferior because of this reason? Surely, not at all!
Analogously, I perfectly well realize that the reaction to the last two items of my vision of the game at Forex can be inadequate. It will stimulate an immediate tide of slander and lies concerning me and my book. The reason is that I’m not an employee of BROKER but a trader. I try to understand recent rules of the game at Forex, its mechanisms and to explain them to others.
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
Free Books Website:
http://www.masterforex-v.su
http://www.masterforex-v.org
Article Source: http://EzineArticles.com/?expert=Vyacheslav_Vasilevich
It is horrible to imagine what could happen to USD rate at the spontaneous market in this case. At the controllable market of Forex USD rate would fall down just by 1-2%.
I hope that my opponents, who deny the existence of a system controlling Forex market, do remember the elementary economical laws. The spontaneous market is a barometer that establishes the real price of goods on the basis of the demand and supply (in the given case, it is the real rate of exchange of any national currency).
The Episode #2 . The hurricane “Katrina” and the flood in USA on September 7, 2005. USD rate stably increases. Chronicle of events.
As the result of the dam (dike) debacle, several states in USA become submerged. The industry, agriculture and transport network were destroyed. There started panic not only among common inhabitants but among officials of various ranks as well. Hundreds and thousands of people perished. There were cases of looting. Many looters (and, maybe, just desperately hungry and thirsty people) were shot by soldiers of USA army. The government of USA declared this hurricane to be a disaster on a national scale. For the first time a new plan of civic defense was introduced (see “BBC. The total chronicle of events”).
“Katrina” was bringing USA to ruin. Senators from Louisiana asked $250 milliards from the federal budget for getting over “Katrina” after-effects.
Thus, it is an illustrative example of the greatest natural cataclysms in USA in the last decades. Even the poorest country in the world – Haiti – provided the financial help for USA ($ 36 thousands). The help of Ukraine made 1 million of hrivnias , etc.
What did happen to USD rate at the controllable Forex market? Notwithstanding all economical laws and even against the common sense, USD rate increased!
Chart 8.7. EURO/USD pair movement (For view picture see notes in end of article)
Chart 8.8. GBP/USD pair movement (For view picture see notes in end of article)
Brief conclusions for traders .
As I think, the thesis that Forex has turned from the spontaneous market to the controllable one does not need further proofs. Hence, traders must introduce amendments into strategy and tactic of their work at Forex.
What are the conclusions, significant for traders, logically follow from these facts?
Under the new conditions of the controllable market, a trader must not follow the “crowd” (flock). As B. Williams, A. Elder and many other authors have fairly emphasized, the “crowd” pushes the price at any spontaneous market. On the contrary, at the organized Forex market orders must be opened in advance of Consortium’s interests!
I try to find the core of a good sense in each technique of the successful work at Forex . Is it necessary to rediscover the well-known principles? There are many prosperous traders who openly and honestly present their methods of gaining profits at Forex . If their techniques are successful, it means that these authors have a thorough grasp of the problem in its essence.
However, in practice, each of the techniques sometimes brings profits, whereas in other cases it is disadvantageous. And it does not matter, whether this technique is developed by B. Williams or by a not celebrated but a successful trader.
Conclusion #1. It is necessary to clearly delineate the domains where a given technique does work and where it fails (as well as the corresponding reasons). In such a way we can clearly understand what of the method by a given trader is worthwhile to be used – as well as how and when to make advantage of it for our work at Forex .
Conclusion #2 . Your trading system must not be just a mixture (farrago) of various techniques. This rule is especially important for the beginners. After reading heaps of books on Forex , all of them make complaints about “such a mess in their heads instead of enlightenment”.
Conclusion #3. A trader must develop his own trading system. In order to gain profit, the following steps must be taken:
a. you choose just any technique developed by any author-trader (e.g., mine or B. Williams’s, or somebody’s else);
b. you must get used to work with the demo account according to this technique to such extent of automatism that you “sense’ it as your own initial (original) trading system of the work at Forex
c. Only after this you should start to study additional literature. You must clearly see what pointes, “borrowed” from other authors, can help you personally to work at Forex , to improve your trading system for getting extra profits.
Objectiveness of Forex turning from the spontaneous market into the controllable one. The pattern of this process
Any profitable business transits from the spontaneous to the controllable one. It is an objective stage in the evolution of business undertakings.
In each branch of a big and super profitable business the initial stage of the chaotic competitive straggle is already has been passed through (petroleum, gas, ferrous and non-ferrous metallurgy, precious metals, arms traffic, etc.). At present all these areas are definitely divided between the principal participants. That is, there exist certain financially-industrial groupings, well-controllable and protected from intrusion of a concurrent.
The same concerns the biggest and most conservative area of business – i.e., its financial branch, the world market of currency exchange included. Can it be otherwise? Can “Chaos” rule the market where the turnover exceeds $1 trillion per day? Can the biggest banks and governments depend on “Chaos” – i.e., be dependable of the “off-floor” traders – such as me and you? Can these organizations be worried about the direction in which we (traders) could turn the trend of all national currencies at this or that second? It is ridiculous to imagine!
To realize the power of the grouping that has organized the “game” of Forex all over the world, we should refer to the thesis from the journal “Speculator”. In June, 2001 the three biggest dealers at Forex market - Citibank, J.P. Morgan Chase и Deutsche Bank – together with Reuters Group PLC had started up the system Atriax . However, the latter did not meet competition and stopped operations in spring, 2002. The author of the paper just hinted that even the alliance of the 3 biggest world banks could not make any serious competition to Organizer of the “game” at Forex (to Consortium or somebody else).
In this connection, how one can take on trust the principal thesis by B. Williams concerning “Trading chaos” that rules Forex? What’s important, all methods of this author issue from this postulate. The following conclusion by B. Williams’s also raises doubts. He states that trends are created by traders, whereas brokers just realize these trends and place traders’ orders. According to B. Williams, the fact that now trends are made rather “off-floor” than “on floor” (as it was earlier) permits detecting what next will happen at the market (see “Trading Chaos”, Chapter 6).
So, to what extent can B. Williams’s techniques be correct if their basis is principally erroneous? Let us enumerate the fundamental mistakes made in “Trading Chaos”. It is necessary to facilitate understanding of the techniques and practical recommendations given by B. Williams concerning the work at Forex .
1. B. Williams sees Forex as a spontaneous market, uncontrollable by anybody. According to this author, it is chaos but not an organized system that would have its own strategy, tactic, techniques, goals, methods of fraud, etc.
2. B. Williams mentions the pair “trader + broker”. However, unconsciously or deliberately, he has omitted the third participant of this very process. This is banks and the world financial system in general. Surely, this organization will not just take a detached view of the traders’ arbitrary “game” with the basic world currencies (USD, EURO, GBP, CHF, etc.).
Let us now evolve B. Williams’s idea by ourselves. Our aim is to demonstrate absurdity of his “chaos theory” applied to the up-to-date market of Forex.
· How brokers and banks market-makers can pay off profits from traders’ deposits if the traders’ total earnings would be bigger than the market-maker’s profit in this period?
· Being in shoes of market-makers, National Banks, governments of leading countries of the world, etc., how will you conduct yourself on the eve of the news issue? For instance, after the publication of Michigan University Index, USD can “go up” by 150-200 points with respect to all national currencies. That is, in several hours dozens of milliards of USD will be redistributed. Somebody will earn the money, whereas somebody will lose it because of the difference in rates of exchange (quotations).
What will you do in the place of the biggest financial groupings? Would you just be sitting and taking sedative pills? Would you just be trying to guess what steps will be taken by professors of a Michigan University? Will 0.3% be added to the index previous value (91.4) or subtracted from it? What’s important, this “difference” makes milliards of USD – for somebody! Possessing such capitals, would you just be sitting idly and waiting for God knows what? More probably, you will try to make this process controllable and predictable. Rather you will do your best to gain profit with the help of such indices and news. I think you will try to let the others lose their money.
· What does the theory of “chaos” at Forex represent by itself if Organizer of the “game” has trained all traders to act according to the stereotype?
a). To place stop-losses and postponed orders at the same places.
b). If the issued news are better than the prognostication, one must stake on “buy”. Otherwise (if the news are worse than the prognostication), it is necessary to stake on “sell”.
c). If a quicker moving average crosses the slower one upwards, the order must be opened on “buy”. In the case of the downward crossover, the order must be opened on “sell”.
d). In the case of divergence, one must try to work against the trend. B. Williams and other “classics” at least had to mention that it was basically absurd to work like this at the beginning of the trend and in the middle of it.
This is why the given chapter is named “Anti-trading chaos” – to be more precise, it is the anti-trading system.
Further I’ll not dwell on absurdity of the chaos theory by B. Williams when applied to Forex . I hope it is quite clear. Any trader can find a lot of evidences of the fact that Forex is a controllable market. There are also many examples that prove fallacy of B. Williams’s conclusion that traders form a trend and "push" it.
As I get it, the “game” of Forex and its rules in their essence are the following.
1. There is Organizer of the financial game (the Alligator) and participants (victims).
2. Organizer always tries to demonstrate: a). objectivity and honesty of the rules established by himself; b). simplicity of the analysis, predictability of the situations and the possibility of earning money easily and regularly by one of the numerous methods of the analysis (FA, TA, etc.).
3. All participants of the “game” are subjected to the same psychological treatment by Brokers, authors of numerical “classical” works on Forex and analysts via their sites and prognoses. That is, such specialists teach every trader to work as all others in the world do.
As the result, Organizer beforehand knows the traders’ line of conduct in these or those situations. The percentage of “players”-losers is stable – about 90%.
4. A rapid growth in the number of fraudulent machinations developed by Brokers has become a logical continuation of the above-enumerated rules of the given game. Economists from Brokers have quickly grasped that the number 90% of traders-loses is very close to the figure 100%. What for will they send clients’ transactions to the foreign market (the market-maker bank)? In fact, traders will lose all the same! Besides, it is possible to slightly “help” traders in their losing by “knocking down” stop-losses - all traders keep their stop-losses approximately at the same place. In addition, the following tricks can be done as well: the “slippage” (opening of transactions at a price much worse than the price at which the trader wanted to open the deal); computer “pending” at the beginning of the heavy movement in currency pairs. One can give many analogous examples – up to the undisguised fraudulent nonpayment of earned profits to traders.
These centers are also protected from the viewpoint of finances. If in flats the sums of orders of the traders who open transactions on “buy” and “sell” are approximately equal, Brokers can always hedge the difference between “buy” and “sell” with a market-maker under the condition of a heavy trend.
The only thing that cheats from Brokers are afraid of is the unmasking of methods of their work. Really, this will put an end to the afflux of new “victims”!
There are several sure signs of a fraudulent Brokers. In my educational course I enumerate some of such indications. However, here I give only one characteristic (traders should think about it well). If Brokers has one point of spread, you should calculate expenses on the marginal trade, in detail described in all “classical” manuals of Forex . For instance, let it be thought that you open the order for one lot. Forex Brokers supposedly buys EURO to the sum of $ 100 thousands for you. When you close the order, Forex Brokers supposedly transfer EURO to USD again. Thus, if you open 10 deals with EURO/USD pair during a day, your Forex Brokers is supposed to send money abroad and get it back 10 times, buying EURO for USD and v.v. All these transactions must be made exceptionally for you! Is it realistic?
In a next-door bank you should ask the conditions for the transfer of $100 thousands abroad and back. You will learn the cost of the commission for such services and the time required for this transaction (in half a day, the next day, etc.). Here I do not mention the papers that must be prepared for each transfer. I also say nothing about the time required for collecting all signatures.
I wonder, during this period of time what changes will occur in EURO/USD rate as the latter is altering every second?
5. To earn regularly at Forex, you have to master yourself. That is, a trading scheme must be developed. According to this scheme you will work against “generally accepted” rules. As it is already mentioned, these rules are popularized by Organizer of the game at Forex . Sticking to these rules, more than 90% of traders all over the world lose their money.
6. Developing my trading system, I have made use of numerous generally-recognized techniques of the work at Forex (by B. Williams, etc.). Surely, there is a kernel of good sense in any technique that enables earning money – even if in 50% of cases. Therefore, the trader’s task is to differentiate the conditions, under which a given technique can provide profit. It is also necessary to understand where, when and why this technique yields a loss to the trader. Naturally, a trader must use only this first part of the system, where one can gain profit.
7. For the development of your own trading system, you must do your best to organically integrate different techniques, profitable at Forex. Various methods of giving analysis to Forex from different viewpoints do help us to more thoroughly and profoundly understand this market and, consequently, to gain profit regularly.
8. The game of Forex is widely spread all over the world. In addition to speculators, there are other participants in Forex – e.g., individuals who need to exchange currency for their business. All these factors provide an objective opportunity to gain profits bigger (and more regularly) than in any other financial game of the world.
9. Therefore, Forex gives a real opportunity to get into the principally new financial market and to become a really independent. Anybody can be engaged in trading at any point in the world. For sure, a State, much as it would want it, cannot deprive a trader of his production facilities because in this area gaining of profit depends just on one’s techniques and skill.
10. Forex gives you just a chance to earn money. However, not everybody can learn how to gain real profit. Even after having mastered the fundamentals of making money at Forex , a trader needs to learn a lot of additional factors in order to transform his potential abilities into real money. In this connection the following aspects are very important.
a). the psychological stability (the absence of fear and hazard, the ability to work automatically at the subconscious level, etc);
b). a reliable broker (the trader’s profits, being virtual, materialize only if you can convert it into real money at any second);
c). self-perfection via mastering new techniques of gaining profit, learning from an experienced instructor and due to exchanging opinions with other traders;
d). the possibility of obtaining money from the investor for the asset management. This gives the opportunity to proceed from the level of one’s own deposit of several hundreds or thousands of USD to the principally new level of the work at Forex. In this way one can simultaneously reinvest a part of one’s profits into the deposit and to spend money on heightening of one’s own well-being. There is a simple example. At mini- Forex , many traders do not earn a lot of money: even if a trader has doubled his deposit in a month, his profit is small (e. g., by making $100 out of $50). Besides, a part of it he must take off from the deposit for the daily needs. I’ll not give examples of large deposits because the tactics of work with them are principally different – as well as the percentage of profit.
11. Not everybody can cover a distance from the chance (the dream) to its realization – i.e., to making real money at Forex . As a trader, here you work against Organizer of this game, who is the professional. That is, to earn money regularly by taking it away from Organizer, one must become the professional himself. Do not hurry to open a real account at least till the time when you will learn to do the following:
a). As B. Williams himself, in several minutes to clearly see two possible alternatives of currency pair movement at the beginning of each session. Correspondingly, you must develop two business plans, where points of input into the market and output from it must be clearly designated.
b). To work out one’s own tactic of the work with the demo account at Forex to perfection. The aim is to augment the demo account at least 2.5-3 times in a month.
c). To develop the long-term and intermediate strategies (not less than a month and a week, respectively) - as well as the short-term tactic (the intra-day trading session). Acquisition of this knowledge will help you to gain profit.
d). After opening of the real account, at the beginning you must work only with trends (under the conditions of flats you must deal with demo accounts). It is necessary to clearly distinguish one from another at the beginning of trading.
e). You must choose two ally currency pairs and work with them continuously, accumulating experience.
12. There can be reasons why your demo account does not augment regularly (in particular, maybe you are too busy at your main job). In this case, you better forget about Forex ! You must not open a real account there. It means that Forex is not intended for you.
By the way, there is completely nothing humiliating in the inability to make money at Forex . Some people do not understand technology, or literature. Others do not come to know fine arts, politics or sports, etc. Does anybody consider oneself inferior because of this reason? Surely, not at all!
Analogously, I perfectly well realize that the reaction to the last two items of my vision of the game at Forex can be inadequate. It will stimulate an immediate tide of slander and lies concerning me and my book. The reason is that I’m not an employee of BROKER but a trader. I try to understand recent rules of the game at Forex, its mechanisms and to explain them to others.
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
Free Books Website:
http://www.masterforex-v.su
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Saturday, August 8, 2009
Forex Secret - Forex Literature As A 90-95% Of The Traders Lose Their Deposit (Part II) By Vyacheslav Vasilevich
(See beginning of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part I)
B. Williams quotes 5 bullets killing a trend, whereas I exemplify their insufficiency and I add up 11 more thereto, not denying the above 5 of them.
B. Williams idealizes the Elliott wave theory, whereas I show that the combination of fives and threes is none the idealizable, otherwise a mankind 100-year development project could have long been elaborated on the basis of Elliott waves pattern, leading to exasperation at the fact that humanity progress does not follow Elliott and Williams. The other thing is that nowadays brokers have mastered the job of manufacturing more waves out of the 5 initially.
The aforesaid is applicable to each of the 20 problems of Forex.
A portion of my live Forex trading methods are to be found in this book, while the other portion thereof is forwarded upon request. Those eager to continue training under my supervision as well as to trade live, please, feel free to contact me on my e-mail address below.
It all could be funny unless it were sad. But IT IS sad, because the above examples are scaring in number. Bearing it in mind, do, go again through excerpts from distinguished scholars books:
- Awesome Oscillator (AO) serves us keys from the Wonderland;
- Accelerator Oscillator (AC) gives us with significant superiority over other traders;
- using AO is similar to reading tomorrow’s “Wall Street Journal”, while using AC is reading of the day-after-tomorrow’s issue thereof;
- by using AO solely, one may attain profits even without any knowledge of current rate; should the oscillator turn down, one may merely ring one’s broker and say: “Sell at the market price!”.
As You have guessed, these are extracts from B. Williams’s “New aspects of Exchange Trade”. Have You read the thing? And now, please, give a glance to the a foregoing figure, depicting the way, the vaunted Williams’s indicators may entail an abyss of losses.
But what truly makes my blood boil is as follows. B. Williams is a professional psycho therapist and his narrative style is none of an incidental one. This is a suggestive method by virtue whereof he attempts to demonstrate the exclusive, correct and faultless nature of his trading technique. The “faultlessness” is to be discussed in an individual chapter, and my only claim here is that I can easily draw hundreds of examples, where one can bump into loss by way of following Williams’s indicators.
By myself, I am an advocate of theory of chaos. But this theory is disclosed by Williams in a very primitive and a superficial manner, which fact results in his blind follower losses. As to the author, he resorts to propaganda methods instead of providing a clearcut distinction between the cases, where the above theory is 100% effective and those, where it is not.
Williams could have explained to his admirers directly, that in these certain instances the theory is to be relied upon, while in these instances it is not to. The difference is in this, this and this. In the former instances one should necessarily enter, whereas in the latter instances one should abstain from entry. But the guy haven’t done the job (due to either not being desirous or to not having sufficient knowledge).
I was a success in finding out distinct operability criteria of the Williams’s technique. To achieve this, I had to improve the Alligator, by virtue whereof I enabled my students to easily pinpoint the difference between the Williams No.1 option (a trend, encouraging profits) and No.2 option (a flat, inflictive of losses).
By the by, it is supportive of the chaos theory methodological correctness and of imperfect Williams’s method structure, plotted on the basis thereof. Instead of acting upon the trader’s consciousness Williams resorts to forbidden subconscious programming procedures, thus stimulating man’s inherent and acquired instincts as if saying: ”If You wanna get rich, follow me! My method empowers one to trade without a single glance at a price! The Awesome Oscillator constitutes a key from a Kingdom!” Etc., etc., etc…
Hence, only 1 of 20 Williams’s followers exhibits Forex-earning capabilities in a most favorable environment. Thus, under this statistics, B. Williams is better not to be idolized, the way he has been by the crowd of his admirers. On the other hand, other Forex maestros’ trading techniques are far worse than that of B. Williams. So, let’s continue illustrating Forex truisms being erroneous in live trading.
- The “Theory of Chaos” of B. Williams. The author has not advised what should be added up thereto. A separate chapter here is dedicated to the issue.
- Trader’s psychological problems. I haven’t found any revelations pertaining to THE WAYS OF ELIMINATING THESE PROBLEMS.
- The issue of a stop-loss order is certainly important: even under trend hedging is an indispensable protective shield against market surprise. But is the problem too far complicated to require a dozen pages’ elucidation? Has the author beheld any secret? Wah! He hasn’t noticed anything but he still has repeated all that wanders from book to book on Forex.
Once I was stunned by a question put forward by one of my students after having read B. Williams’s “Trading Chaos”: what’s the use of giving so much attention to the stop-loss problem and above all what’s the good of chewing over the role of safety cushions in the automobile industry as though readers are down with minority?
Doubtlessly, it’s funny reading that Williams has never violated traffic regulations, priding himself on the occasion. Any psychiatrist could tell a hell lot about such a personality type, although, I should admit that Williams is American, not Russian.
Drawing picturesque, memorizing examples, each scholar is right to insist on protective barrier placement as a loss killer. But there is hardly anyone to introduce certain novelty into the issue and to disclose the secret as to what there should be in the trader’s store besides a stop-loss to insure against his deposit melting and extra losses. A separate chapter here is targeted at the issue.
I have shortly come across an aphorism: “Genius is not to the effect, that nothing can be added thereto, but it is to the effect that nothing can be deleted there from”.
If You go through numerous books on Forex at this aspect angle, You are sure to surprisingly find out that 90-100% of their contents may be subject to withdrawal. WHY?
BECAUSE nothing new and 100% correct is offered therein. Instead, reiteration is going on of what is familiar to any professional, since everyone is itching to exhibit one’s originality by way of retelling: a paramount authority of FA over Forex exchange rates; continuation and reversal patterns; a stop-loss importance; a divergence being a component of a trend reversal, etc., i.e. book-to-book travelers.
“An outstanding Forex trading techniques” and “a genius scholar”, etc., making their appearance in books’ abstracts and annotations are off springs of 1% originality added up by an author to 99% of common knowledge.
Sale is publisher’s primary target, giving birth to “genius” mediocrities and plagiarism. Standing separately among these books are opuses by B. Williams, being admired and scrutinized regularly by the majority of scholars and by myself. But EVEN HE cannot be qualified as “genius” with account to the above formula. He is rather “eccentric” than “genius”.
The thing is not, that his technique is addenda-allowing (this fact backs the correct Williams’s choice of the chaos theory to be applied to Forex) and I easily managed to add 11 trend-assassinating bullets to the 5 of Williams. The thing is that a number of Williams’s postulates ARE WRONG and thus loss- inflictive. These can be and should be subject to removal.
CONCLUSION: I guess, it’s understandable by now, that script-writing has turned to be business for scholars, incorporating additional advertising and additional charges for their students. However, the above is not worth millions Forex losers sacrifice.
Much more respect-triggering is Warren Buffet, having made a minimum of USD40 bn at the stock market without writing any books on his trading tactics. W. Buffet is the world’s second-rich man after Bill Gates, although this fact being thoroughly doubtable. B. Gates is supposed to declare the whole of his income obtainable from the Microsoft Corporation, whereas W. Buffet, being a trader, is sure to deem himself entitled to show the Inland Revenue what he really wants to.
The difference is fairly evident. The profit obtained from US companies, constituting the Gates official fortune major portion, may be kept track of, as well as the offshore profits may sometimes be properly checked. But Buffet’s profits attractable at all. Do You expect a man, lending his own daughter a sum of USD20 against a receipt, to allow ALL of his profits to be taxable by state? Or a moderate portion of profits is sufficient, yeah? It is entirely his job, whereas we are to learn to gain at least a spoonful of what he has acquired during 40 years of his activity at the stock exchange.
Thus, to cut it short: a classical Forex literature exhibits but an anti-scientific unsystematic nature, constituting a “crise de genre” and triggering losses among 90% of beginners, abandoning Forex market.
In what does science differ from a philistine and amateur effort? In a systematic and objective nature, in a methodology perspective. In there any of the above to be found with scholar literature on Forex? No, but instead there is in abundance:
A. Tautology and absence of new approaches. From book to book world-distinguished scholars feed traders (as if the latter were silly little chaps) with stories about R&S levels importance, technical indicators, continuation and reversal patterns, etc., which is as interesting and instructive for a professional trader as ABC reading is for a professor of philology.
B. Absence of integrity. Individually, it is all clear: Elliot waves, Fibonacci levels, resistance levels, reversal patterns, etc. But what’s the way it all is interconnected and integrated? In what way it is influential over each other? What is primary and what is secondary? Imagine a doctor diagnoses and cures patients without a slightest idea of interaction of digestive, cardio-vascular and other systems.
This is what exactly happens to Forex beginners. They are sure to have learnt something, but they are being muddleheaded instead of having a systematic knowledge. Medical students undergo a course of anatomy. Geologists and military men make use of topographic maps. And what do Forex beginners have to this end? You are free to interrogate any scientist if he has knowledge of parts of science without having knowledge of the whole. Guess, what he’s gonna answer? And now give consideration to what is being currently published on Forex and being accessible to anyone. Thereafter You will easily “evaluate” the “outstanding contribution” made by each of Forex scholars.
4. Methodology and techniques subjectivism and absence of objectivity. See live scholar, Th. Demark’s “Technical Analysis As An Emerging Science” recommending to manually draw R&S lines from the right to the left instead of so previously doing from the left to the right. The book’s preface qualifies it to be “refined techniques built during a quarter of a century of a laborious scrutiny of market tendencies and projecting methods”. And thereinafter: “Demark’s empiric-data strictly scientific approaches are in striking difference from an artistic intuitive one thus constituting a rational basis for dynamic systems, mechanically outputting market signals.” But, with having not disclosed his system’s essence, is Demark aware that his subjective Forex trading suggestions may happen to entail severe mistakes. Yeah, he substantiates his viewpoint in chapter “Why price projections may not go into effect”: “…due to no technique being perfect”. Good a science with “no technique being perfect”!
Demark is looking rather a philosopher, than a trader with his tirade being nothing but a sophism, made use of as back as in ancient Greece to provide grounds and protection for any kind of absurd.
In accordance to Demark, “a mistake becomes obvious the next day as soon, as the first deal price is registered”. I am itching to ask the scholar: “How many points may a currency travel in a wrong direction during an earth day?” I am answering myself: 100 pts or 200 pts or more. Demark diagnoses: “This instance evidences a breach, indicative of a new opposite tendency”. Well, I’ve got it.
Once there is loss, one should loss-close and enter oppositely.
Take a look at the picture below:
Fig.10. EURUSD H1 chart as of March, 22 – April, 18, 2005 manifesting a month-long flat. (See Note below)
How many days should one per-Demark loss-close with the rate repeatedly swiveling as though to Demark’s ill luck? The scholar has to be asked, how large should a trader’s deposit be to survive Demark’s experiments, being ranked “refined techniques” and “strictly scientific approaches”, “cardinally different from others’ ”, less scientific ones, as I can guess.
The opus author will again fall soothing upon You: “One oughtn’t to expect herein outlined technical methods and indicators to offer profits and not to entail losses. Forex trading involves both: a profit opportunity and a loss risk. Preceding results are in no way guarantor of perspective success”. Further on, with greater cynicism and hypocrisy: “Should You be seeking a trading panacea, put this book aside: it’s in no way helpful to You”. Well, what’s the use of buying the book at such price?
Demark, by the way, gives the interpretation of his book’s objective to be “fuelling readers with methodology, encouraging one to systematize various TA techniques”. Great! I thought, it were a new discovery of Forex regularities to be delivered to traders. But it looks, like the scholar has plunged himself into systematizing earlier 50%-correct discoveries without taking any pertinent responsibility.
Hence, no avail to purchase the book and to litter one’s brain therewith, since Forex rates enjoy 50/50 up-down travel chance, even under the probability theory.
Thus, not too much understandable, where Demark’s scientific approach manifestation is to be searched, whereas the essence of things is incomprehensible once the reversal results come evident after an earth day only with no reference to his book.
John G. Murphy, another Forex scholar, outlines in the preface, that the “less art – more science” slogan is specially topical now that greater entities begin taking interest in this area.
As to myself, I have truly appreciated the preface writer Murphy joke as being filled with subtleness and tristesse.
Now, pertaining to science-to-practice correlation and theoretical conclusions implementation… How many scholars of those hundreds referred hereto resort to live examples while teaching long and short entries and close ups thereof? Very few of them:
- B. Williams “Trading Chaos”, “New aspects of Exchange Trading”;
- J. Murphy “TA of Futures Markets”
- S. Nisson “Japanese candlesticks. Financial markets graphic analysis”
- A. Elder “Basics of Exchange Trading”
- L. Williams. “Long-Term Secrets of Short Term Trade”
- Ch. Lebo, D. Lukas “Computer Analysis of Futures Markets”
- D. Swagger “TA, Comprehensive Course”
… and hardly few more.
Disappointing enough, but it is fairly lucid why 90% of beginners mutate into failures and abandon Forex.
By way of getting familiar with the SYSTEM, one will suddenly realize how smooth are Forex artifacts to get apparent one from another, e.g.: M5 Elliott waves constituting M15 wave I, this wave being but H1 and H4 corrective within certain Fibonacci levels.
One gets clear vision of what all the Forex-traded currencies are doing now and what they are going to in half a day. Williams did have grounds to claim, he needs several tens of minutes to analyze tens of charts. He DID have understood Forex as a system, though he has offered but the system components portrayal in his books. Depending on where utilized, the Alligator may appear to be responsible either for a profit or for a loss. But Williams has not even taken pains to present a differentiation between the Alligator being a profit assistant and the Alligator being a loss bringer.
The above is conditioned by the Williams Alligator being a great TA tool, but pertaining to a certain AREA OF Forex only. Other areas require other TA facilities. I will do my best to teach You to effect proper estimation of long-term and super short-term entries being appropriate for the moment.
I will also dwell on why it is not difficult to add extra 11 trend-killing bullets to the 5 of Williams’s; why it is easy to build up a currency travel vector daily projection. The whole thing is minimized to several criteria, being constantly effective irrespective of currency intentions. As a result, You will not have to monthly pay quacking mountebanks’ impotent daily forecasts.
But now let’s move on with Forex scientific criteria. Stagnation and dogmatism are alternative attributes of Forex folios’ anti-scientific substance. Have You ever come across a criticism of any Forex-oriented theory? I mean a weighed objective criticism, assigning credits to the author for elaborating a revolutionary theory, which has by now got obsolete due to a number of objective reasons and thus requires improvement, i.e. replacement.
For instance, I have found nothing of the kind in relation to the 100-year old Dow theory, originally incorporative of benign principles. But life goes on, and there seems no reason to head-hammer life-rectified Dow’s postulates:
- a long-term trend (primary, basic as per Dow) being several years long. Curious enough to spot a currency pair to stand open for so a long period;
- a medium-term trend (intermediate tendency) being several months long. As per Dow, the MTT is opposite (corrective) to the basic trend;
- a short-term trend, not exceeding 3 weeks and incarnating minor fluctuations within the intermediate tendency;
- intraday trend being per-Dow midget ripples, not worth paying attention to.
You are now welcome to take a close look at the figures below, as of October, 2004 through March, 2005.
Fig.11. EURUSD D1 chart. (See Note below)
Fig.12. GBPUSD D1 chart. (See Note below)
CONCLUSION: This theory of Dow’s might be deemed effective rather till late 80s, than presently.
Nowadays, with 3 pips spread, 50-200 pips pullbacks and trends not exceeding a week, the Dow theory
MUST BE recognized as being despairingly obsolete and trader-hostile, since, under a 3-pip spread, it is, certainly, top of recklessness and stupidity to stand open for months or years. A different trend classification is to be called for, meeting updated Forex environment standards.
I guess there’s no need to continue being proponent of the fact that presently Forex theories are obsolete in their majority, with this sort of methodology being requisite for analysts rather than for traders. As opposed, I hold it more appropriate to forward my entry and exit technique to traders willing to conduct successful and loss-safe trading.
By way of prompting: please, attempt to view Forex as a system inclusive of components being familiar to You: Elliott waves, reversal patterns, Fibonacci levels, MAs, ally currencies, etc. All the above staff is integrally intercommunicative rather than existing individually, the way, each organ is in the human body.
I DID have understood it, and I realized the way B. Williams is able to analyze tens of currencies within tens of minutes in order to execute correct long and short entries.
It may look surprising to someone, but a qualified doctor is capable to diagnose Your body hazards after a short examination and talking to You. The doctor has actually examined but several organs, but his knowledge system has empowered him to jump at wider conclusions, as Williams at Forex.
GROSS TOTAL. Steady and regular Forex profits are real opportunity. There is hardly another area which enables one to knock up a fortune without having rich aged relatives abroad, without having to join one’s native country’s throughout corruptible authorities or else. If You have discovered THAT ANOTHER area, You are free to get engaged therein. Then, Forex is not likely to be requisite.
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
Article Source: http://EzineArticles.com/?expert=Vyacheslav_Vasilevich
B. Williams quotes 5 bullets killing a trend, whereas I exemplify their insufficiency and I add up 11 more thereto, not denying the above 5 of them.
B. Williams idealizes the Elliott wave theory, whereas I show that the combination of fives and threes is none the idealizable, otherwise a mankind 100-year development project could have long been elaborated on the basis of Elliott waves pattern, leading to exasperation at the fact that humanity progress does not follow Elliott and Williams. The other thing is that nowadays brokers have mastered the job of manufacturing more waves out of the 5 initially.
The aforesaid is applicable to each of the 20 problems of Forex.
A portion of my live Forex trading methods are to be found in this book, while the other portion thereof is forwarded upon request. Those eager to continue training under my supervision as well as to trade live, please, feel free to contact me on my e-mail address below.
It all could be funny unless it were sad. But IT IS sad, because the above examples are scaring in number. Bearing it in mind, do, go again through excerpts from distinguished scholars books:
- Awesome Oscillator (AO) serves us keys from the Wonderland;
- Accelerator Oscillator (AC) gives us with significant superiority over other traders;
- using AO is similar to reading tomorrow’s “Wall Street Journal”, while using AC is reading of the day-after-tomorrow’s issue thereof;
- by using AO solely, one may attain profits even without any knowledge of current rate; should the oscillator turn down, one may merely ring one’s broker and say: “Sell at the market price!”.
As You have guessed, these are extracts from B. Williams’s “New aspects of Exchange Trade”. Have You read the thing? And now, please, give a glance to the a foregoing figure, depicting the way, the vaunted Williams’s indicators may entail an abyss of losses.
But what truly makes my blood boil is as follows. B. Williams is a professional psycho therapist and his narrative style is none of an incidental one. This is a suggestive method by virtue whereof he attempts to demonstrate the exclusive, correct and faultless nature of his trading technique. The “faultlessness” is to be discussed in an individual chapter, and my only claim here is that I can easily draw hundreds of examples, where one can bump into loss by way of following Williams’s indicators.
By myself, I am an advocate of theory of chaos. But this theory is disclosed by Williams in a very primitive and a superficial manner, which fact results in his blind follower losses. As to the author, he resorts to propaganda methods instead of providing a clearcut distinction between the cases, where the above theory is 100% effective and those, where it is not.
Williams could have explained to his admirers directly, that in these certain instances the theory is to be relied upon, while in these instances it is not to. The difference is in this, this and this. In the former instances one should necessarily enter, whereas in the latter instances one should abstain from entry. But the guy haven’t done the job (due to either not being desirous or to not having sufficient knowledge).
I was a success in finding out distinct operability criteria of the Williams’s technique. To achieve this, I had to improve the Alligator, by virtue whereof I enabled my students to easily pinpoint the difference between the Williams No.1 option (a trend, encouraging profits) and No.2 option (a flat, inflictive of losses).
By the by, it is supportive of the chaos theory methodological correctness and of imperfect Williams’s method structure, plotted on the basis thereof. Instead of acting upon the trader’s consciousness Williams resorts to forbidden subconscious programming procedures, thus stimulating man’s inherent and acquired instincts as if saying: ”If You wanna get rich, follow me! My method empowers one to trade without a single glance at a price! The Awesome Oscillator constitutes a key from a Kingdom!” Etc., etc., etc…
Hence, only 1 of 20 Williams’s followers exhibits Forex-earning capabilities in a most favorable environment. Thus, under this statistics, B. Williams is better not to be idolized, the way he has been by the crowd of his admirers. On the other hand, other Forex maestros’ trading techniques are far worse than that of B. Williams. So, let’s continue illustrating Forex truisms being erroneous in live trading.
- The “Theory of Chaos” of B. Williams. The author has not advised what should be added up thereto. A separate chapter here is dedicated to the issue.
- Trader’s psychological problems. I haven’t found any revelations pertaining to THE WAYS OF ELIMINATING THESE PROBLEMS.
- The issue of a stop-loss order is certainly important: even under trend hedging is an indispensable protective shield against market surprise. But is the problem too far complicated to require a dozen pages’ elucidation? Has the author beheld any secret? Wah! He hasn’t noticed anything but he still has repeated all that wanders from book to book on Forex.
Once I was stunned by a question put forward by one of my students after having read B. Williams’s “Trading Chaos”: what’s the use of giving so much attention to the stop-loss problem and above all what’s the good of chewing over the role of safety cushions in the automobile industry as though readers are down with minority?
Doubtlessly, it’s funny reading that Williams has never violated traffic regulations, priding himself on the occasion. Any psychiatrist could tell a hell lot about such a personality type, although, I should admit that Williams is American, not Russian.
Drawing picturesque, memorizing examples, each scholar is right to insist on protective barrier placement as a loss killer. But there is hardly anyone to introduce certain novelty into the issue and to disclose the secret as to what there should be in the trader’s store besides a stop-loss to insure against his deposit melting and extra losses. A separate chapter here is targeted at the issue.
I have shortly come across an aphorism: “Genius is not to the effect, that nothing can be added thereto, but it is to the effect that nothing can be deleted there from”.
If You go through numerous books on Forex at this aspect angle, You are sure to surprisingly find out that 90-100% of their contents may be subject to withdrawal. WHY?
BECAUSE nothing new and 100% correct is offered therein. Instead, reiteration is going on of what is familiar to any professional, since everyone is itching to exhibit one’s originality by way of retelling: a paramount authority of FA over Forex exchange rates; continuation and reversal patterns; a stop-loss importance; a divergence being a component of a trend reversal, etc., i.e. book-to-book travelers.
“An outstanding Forex trading techniques” and “a genius scholar”, etc., making their appearance in books’ abstracts and annotations are off springs of 1% originality added up by an author to 99% of common knowledge.
Sale is publisher’s primary target, giving birth to “genius” mediocrities and plagiarism. Standing separately among these books are opuses by B. Williams, being admired and scrutinized regularly by the majority of scholars and by myself. But EVEN HE cannot be qualified as “genius” with account to the above formula. He is rather “eccentric” than “genius”.
The thing is not, that his technique is addenda-allowing (this fact backs the correct Williams’s choice of the chaos theory to be applied to Forex) and I easily managed to add 11 trend-assassinating bullets to the 5 of Williams. The thing is that a number of Williams’s postulates ARE WRONG and thus loss- inflictive. These can be and should be subject to removal.
CONCLUSION: I guess, it’s understandable by now, that script-writing has turned to be business for scholars, incorporating additional advertising and additional charges for their students. However, the above is not worth millions Forex losers sacrifice.
Much more respect-triggering is Warren Buffet, having made a minimum of USD40 bn at the stock market without writing any books on his trading tactics. W. Buffet is the world’s second-rich man after Bill Gates, although this fact being thoroughly doubtable. B. Gates is supposed to declare the whole of his income obtainable from the Microsoft Corporation, whereas W. Buffet, being a trader, is sure to deem himself entitled to show the Inland Revenue what he really wants to.
The difference is fairly evident. The profit obtained from US companies, constituting the Gates official fortune major portion, may be kept track of, as well as the offshore profits may sometimes be properly checked. But Buffet’s profits attractable at all. Do You expect a man, lending his own daughter a sum of USD20 against a receipt, to allow ALL of his profits to be taxable by state? Or a moderate portion of profits is sufficient, yeah? It is entirely his job, whereas we are to learn to gain at least a spoonful of what he has acquired during 40 years of his activity at the stock exchange.
Thus, to cut it short: a classical Forex literature exhibits but an anti-scientific unsystematic nature, constituting a “crise de genre” and triggering losses among 90% of beginners, abandoning Forex market.
In what does science differ from a philistine and amateur effort? In a systematic and objective nature, in a methodology perspective. In there any of the above to be found with scholar literature on Forex? No, but instead there is in abundance:
A. Tautology and absence of new approaches. From book to book world-distinguished scholars feed traders (as if the latter were silly little chaps) with stories about R&S levels importance, technical indicators, continuation and reversal patterns, etc., which is as interesting and instructive for a professional trader as ABC reading is for a professor of philology.
B. Absence of integrity. Individually, it is all clear: Elliot waves, Fibonacci levels, resistance levels, reversal patterns, etc. But what’s the way it all is interconnected and integrated? In what way it is influential over each other? What is primary and what is secondary? Imagine a doctor diagnoses and cures patients without a slightest idea of interaction of digestive, cardio-vascular and other systems.
This is what exactly happens to Forex beginners. They are sure to have learnt something, but they are being muddleheaded instead of having a systematic knowledge. Medical students undergo a course of anatomy. Geologists and military men make use of topographic maps. And what do Forex beginners have to this end? You are free to interrogate any scientist if he has knowledge of parts of science without having knowledge of the whole. Guess, what he’s gonna answer? And now give consideration to what is being currently published on Forex and being accessible to anyone. Thereafter You will easily “evaluate” the “outstanding contribution” made by each of Forex scholars.
4. Methodology and techniques subjectivism and absence of objectivity. See live scholar, Th. Demark’s “Technical Analysis As An Emerging Science” recommending to manually draw R&S lines from the right to the left instead of so previously doing from the left to the right. The book’s preface qualifies it to be “refined techniques built during a quarter of a century of a laborious scrutiny of market tendencies and projecting methods”. And thereinafter: “Demark’s empiric-data strictly scientific approaches are in striking difference from an artistic intuitive one thus constituting a rational basis for dynamic systems, mechanically outputting market signals.” But, with having not disclosed his system’s essence, is Demark aware that his subjective Forex trading suggestions may happen to entail severe mistakes. Yeah, he substantiates his viewpoint in chapter “Why price projections may not go into effect”: “…due to no technique being perfect”. Good a science with “no technique being perfect”!
Demark is looking rather a philosopher, than a trader with his tirade being nothing but a sophism, made use of as back as in ancient Greece to provide grounds and protection for any kind of absurd.
In accordance to Demark, “a mistake becomes obvious the next day as soon, as the first deal price is registered”. I am itching to ask the scholar: “How many points may a currency travel in a wrong direction during an earth day?” I am answering myself: 100 pts or 200 pts or more. Demark diagnoses: “This instance evidences a breach, indicative of a new opposite tendency”. Well, I’ve got it.
Once there is loss, one should loss-close and enter oppositely.
Take a look at the picture below:
Fig.10. EURUSD H1 chart as of March, 22 – April, 18, 2005 manifesting a month-long flat. (See Note below)
How many days should one per-Demark loss-close with the rate repeatedly swiveling as though to Demark’s ill luck? The scholar has to be asked, how large should a trader’s deposit be to survive Demark’s experiments, being ranked “refined techniques” and “strictly scientific approaches”, “cardinally different from others’ ”, less scientific ones, as I can guess.
The opus author will again fall soothing upon You: “One oughtn’t to expect herein outlined technical methods and indicators to offer profits and not to entail losses. Forex trading involves both: a profit opportunity and a loss risk. Preceding results are in no way guarantor of perspective success”. Further on, with greater cynicism and hypocrisy: “Should You be seeking a trading panacea, put this book aside: it’s in no way helpful to You”. Well, what’s the use of buying the book at such price?
Demark, by the way, gives the interpretation of his book’s objective to be “fuelling readers with methodology, encouraging one to systematize various TA techniques”. Great! I thought, it were a new discovery of Forex regularities to be delivered to traders. But it looks, like the scholar has plunged himself into systematizing earlier 50%-correct discoveries without taking any pertinent responsibility.
Hence, no avail to purchase the book and to litter one’s brain therewith, since Forex rates enjoy 50/50 up-down travel chance, even under the probability theory.
Thus, not too much understandable, where Demark’s scientific approach manifestation is to be searched, whereas the essence of things is incomprehensible once the reversal results come evident after an earth day only with no reference to his book.
John G. Murphy, another Forex scholar, outlines in the preface, that the “less art – more science” slogan is specially topical now that greater entities begin taking interest in this area.
As to myself, I have truly appreciated the preface writer Murphy joke as being filled with subtleness and tristesse.
Now, pertaining to science-to-practice correlation and theoretical conclusions implementation… How many scholars of those hundreds referred hereto resort to live examples while teaching long and short entries and close ups thereof? Very few of them:
- B. Williams “Trading Chaos”, “New aspects of Exchange Trading”;
- J. Murphy “TA of Futures Markets”
- S. Nisson “Japanese candlesticks. Financial markets graphic analysis”
- A. Elder “Basics of Exchange Trading”
- L. Williams. “Long-Term Secrets of Short Term Trade”
- Ch. Lebo, D. Lukas “Computer Analysis of Futures Markets”
- D. Swagger “TA, Comprehensive Course”
… and hardly few more.
Disappointing enough, but it is fairly lucid why 90% of beginners mutate into failures and abandon Forex.
By way of getting familiar with the SYSTEM, one will suddenly realize how smooth are Forex artifacts to get apparent one from another, e.g.: M5 Elliott waves constituting M15 wave I, this wave being but H1 and H4 corrective within certain Fibonacci levels.
One gets clear vision of what all the Forex-traded currencies are doing now and what they are going to in half a day. Williams did have grounds to claim, he needs several tens of minutes to analyze tens of charts. He DID have understood Forex as a system, though he has offered but the system components portrayal in his books. Depending on where utilized, the Alligator may appear to be responsible either for a profit or for a loss. But Williams has not even taken pains to present a differentiation between the Alligator being a profit assistant and the Alligator being a loss bringer.
The above is conditioned by the Williams Alligator being a great TA tool, but pertaining to a certain AREA OF Forex only. Other areas require other TA facilities. I will do my best to teach You to effect proper estimation of long-term and super short-term entries being appropriate for the moment.
I will also dwell on why it is not difficult to add extra 11 trend-killing bullets to the 5 of Williams’s; why it is easy to build up a currency travel vector daily projection. The whole thing is minimized to several criteria, being constantly effective irrespective of currency intentions. As a result, You will not have to monthly pay quacking mountebanks’ impotent daily forecasts.
But now let’s move on with Forex scientific criteria. Stagnation and dogmatism are alternative attributes of Forex folios’ anti-scientific substance. Have You ever come across a criticism of any Forex-oriented theory? I mean a weighed objective criticism, assigning credits to the author for elaborating a revolutionary theory, which has by now got obsolete due to a number of objective reasons and thus requires improvement, i.e. replacement.
For instance, I have found nothing of the kind in relation to the 100-year old Dow theory, originally incorporative of benign principles. But life goes on, and there seems no reason to head-hammer life-rectified Dow’s postulates:
- a long-term trend (primary, basic as per Dow) being several years long. Curious enough to spot a currency pair to stand open for so a long period;
- a medium-term trend (intermediate tendency) being several months long. As per Dow, the MTT is opposite (corrective) to the basic trend;
- a short-term trend, not exceeding 3 weeks and incarnating minor fluctuations within the intermediate tendency;
- intraday trend being per-Dow midget ripples, not worth paying attention to.
You are now welcome to take a close look at the figures below, as of October, 2004 through March, 2005.
Fig.11. EURUSD D1 chart. (See Note below)
Fig.12. GBPUSD D1 chart. (See Note below)
CONCLUSION: This theory of Dow’s might be deemed effective rather till late 80s, than presently.
Nowadays, with 3 pips spread, 50-200 pips pullbacks and trends not exceeding a week, the Dow theory
MUST BE recognized as being despairingly obsolete and trader-hostile, since, under a 3-pip spread, it is, certainly, top of recklessness and stupidity to stand open for months or years. A different trend classification is to be called for, meeting updated Forex environment standards.
I guess there’s no need to continue being proponent of the fact that presently Forex theories are obsolete in their majority, with this sort of methodology being requisite for analysts rather than for traders. As opposed, I hold it more appropriate to forward my entry and exit technique to traders willing to conduct successful and loss-safe trading.
By way of prompting: please, attempt to view Forex as a system inclusive of components being familiar to You: Elliott waves, reversal patterns, Fibonacci levels, MAs, ally currencies, etc. All the above staff is integrally intercommunicative rather than existing individually, the way, each organ is in the human body.
I DID have understood it, and I realized the way B. Williams is able to analyze tens of currencies within tens of minutes in order to execute correct long and short entries.
It may look surprising to someone, but a qualified doctor is capable to diagnose Your body hazards after a short examination and talking to You. The doctor has actually examined but several organs, but his knowledge system has empowered him to jump at wider conclusions, as Williams at Forex.
GROSS TOTAL. Steady and regular Forex profits are real opportunity. There is hardly another area which enables one to knock up a fortune without having rich aged relatives abroad, without having to join one’s native country’s throughout corruptible authorities or else. If You have discovered THAT ANOTHER area, You are free to get engaged therein. Then, Forex is not likely to be requisite.
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
Article Source: http://EzineArticles.com/?expert=Vyacheslav_Vasilevich
Forex Secret - Forex Literature As A 90-95% Of The Traders Loose Their Deposit (Part I)
This delusion globally entails identical aftermaths: 90-95% of traders turn steady to loose their deposits having studied books by Bill Williams, Alexander Elder, Thomas Demark, J. Schwager, et al.
Following the burn down of their first deposit trader’s plunge themselves again into scrutinizing Forex scholars, in this manner suffering losses of the second, the third and subsequent deposit. I will hereinafter try to elucidate where from the above regularity grows, so that no trader repeats his forerunners’ mistakes.
This statistics is common knowledge: 90% of traders constitute Forex losers… But the figure has always been giving rise to a leviathan of my doubts. It isn’t because of somewhat different 95%-5% loser-to-winner ratio quoted in the Van Tarp and Brian June “Intraday trading: secrets of mastership”. With 90% quoted universally, there naturally emerges the question, as to whether there is someone capable to check, to specify or to disprove the above figure.
NO ONE IS, besides the directors of largest Western banks providing streamline Forex quotes, but having never raised the issue.
WHY? Because should this statistics be published, there will be sharp and ultimate decline in number of those chasing easy profits from the world Forex market. Otherwise banks would not keep mum in advertising purposes. Neither would they be silent if losers constituted at least by few points less than 90%. In any advertising, customer attraction is ensured by quoting beneficial maxima and non-lucrative minima. This has always been, is being and will always be a universal practice.
As a conclusion, 10% Forex winners is a maximum result among traders. It’s them, who have understood Forex market absolutely simple truisms and who attained steady daily earnings in amounts being gained by others within years or even the whole of life.
Certainly, those are to be recollected, who in late 80s were the first in the ex-USSR to grasp laws of commerce and who began accumulating their initial stock. The rules used to be so simple that presently any schoolboy or a first-year student can show the way the capital might have been easily scraped up and augmented on the USSR debris and in the course of market relations being established in the post-Soviet space.
I do exactly allow for the fact that through the years a new generation will be laughing at the way we are now incapable to comprehend the laws, where under currency rates either spike up or fall down, all of a sudden.
With this provision, those seeking fast money at Forex have a much greater time limit than the ones engaged in capital building in the post-Soviet space (Forex market is incommensurably greater than that in the ex-USSR), but not to the extent thought by many.
By now trends are thoroughly less numerous than they used to be 10-20 years ago. By way of taking a glance the charts history You are in the position to understand the way traders used to earn under 20- 40 pts spread, commission and slippage. A trend was followed by a trend at that epoch.
AND WHAT’S NOW? Nowadays many of traders are impotent to gain under 3 pts spread without commission and slippage.
Thus, this book is intended for those willing to perceive Forex market laws.
In order to get understanding of the way 5-10% of successful traders obtain profits, let’s at the outset analyze the reasons and the way the outstanding 90% of traders suffer losses. The 90%-figure looks scaring, to say nothing of 95% or 98%. It occurs despite the amount of literature on the issue equals to hundreds of fundamental books, written by authors, having gained capitals expressed by means of more than 7-digit figures (G. Soros, B. Williams, A. Elder, T. Demark).
Thus, the above minimum of 90% of smart, well-read, broad-knowledged people:
- scrutinize the really great traders’ heritage;
- open accounts with Forex Broker's and banks, start trading and…
- loose funds up to complete rout!
AND WHERE’S THE LOGIC? The answer springs to mind by itself... There’s something wrong in the literature (by the way, recognized throughout the world, where the deposit-killing statistics is as disappointing as it is in our country) so long as its studying yields such oppressive results.
STRANGE? No, rather natural, than strange on account of the following:
1. Being a great trader is not indicative of everyone being a great teacher.
2. Multitude of rules elaborated by scholars 10-40 years ago, has grown obsolete, since the Forex market is changing.
3. The scholars HAVE NOT revealed ALL the secrets even WITHIN THE FRAMEWORK OF THE THEN
FOREX, therefore by now their advice and recommendation turn out either obsolete or naïve.
Thus, once one’s advice and recommendations bring every 9 of 10 market participants to loose their money in each country, where one’s books have used to be published and have enjoyed all sorts of hosanna in the press, THEN ONE IS NONE OF A TEACHER.
Naturally, no trader will reveal his professional secrets to the full. But when studying Forex literature one gets astonished by a negligible extent the above secrets are “confided” at all, with a book on Forex containing 99% of common truth and 1% only of useful novelties. But should one train up even several thousands perspective traders, one will in no way burden oneself with competitors, due to the Forex market huge sale nature. Beyond a shadow of a doubt the above traders are really great. You may agree or not, but anyone, having earned USD1 bn or more, deserves being named “great”. So, one’s books should be published as memoirs. I am not attaching any irony hereto, since these persons have acquired gains by virtue of their minds and labor, as opposite to Rockfellers, who inherited their fortunes or to Russian oligarchs, who either stole or got their capitals dirt-cheap from state authorities.
Hopefully, understandable is the difference between such editions and manuals for beginners.
G. Kasparov, say, is far from writing manuals for chess beginners, since the job can be better completed by others with this fact not at all undermining Kasparov’s being a great chess player. And his advice and recommendation is sure to be of interest rather to a close circle of grand masters, than to those having touched the chess for the first time.
Actually Kasparov is but to be respected for not being tempted by the lust for fast money, by virtue of his name in the chess world and by way of cooking up manuals for beginners.
At Forex, by contrast, and for some reason, everyone deems oneself a teacher, which fact results in millions educated people worldwide leaving stock market being disappointed, angry with an inferiority complex life-time pursuit.
And hence, the unanswered question for them: is that all a fraud or not, since gains are midget, whereas losses are titanic?
I am recalling the book titled “The Alchemy of Finance” by G. Soros (the one I’ve read in early 90-s). I admit, it’s interesting, instructive…, but it is all narrated in so an inarticulate and tangled manner. As indicated in the foreword by an American investor, the theory has hardly been understood by few only.
So what’s the use of writing in such a manner? A theory may generally be complicated to any extent, BUT IT MUST BE wrapped in a simple, clear and understandable wording.
You are welcome to attempt to read the above book once You have time to. Shortly, the Soros reflexivity theory of the countries’ cyclic development may easily bear a couple-sentence confinement:
1. Following liberation from totalitarian yoke, a country is granted credits, then, there is a rapid growth and flourish of economy.
2. As soon as the above credits are to be paid back, a country’s economy faces a natural recession.
Is it as difficult? The question may be addressed to a schoolboy (to say nothing of an American investor): when should those countries’ companies’ shares be purchased and when they are to be advantageously sold in order to acquire maximum profit? What’s going to happen in case one is too late to sell the shares, shortly exhibiting an impetuous growth in price?
Propounded long before, the Soros theory has been entirely corroborated in August, 98 by the dismal practice established in Asian and Pacific countries and later in Russia.
There still is another question: how inarticulate should Soros have been to enable his theory to be grasped by few only?
The second part of the book is not worth retelling. Reading its original is sure to be much more instructive with my annotation leaving no conundrums therein.
The theory is permeated by Soros’s strategy: enter long on what’s shortly going to enjoy price growth with a 100% probability and “pull out” Your money along with profits before the companies enter crisis, thus facilitating bankruptcies thereof.
This is the way I clearly lecture my students on Forex-related complexities, thus conveying my logics to them. Despite its own complexities (news, TA, corrective actions, etc.), Forex is essentially reduced to a very simple truth: at a certain moment one should not be late with going long or short on a currency with “tertium non datum”.
And when asked if the Williams Alligator needs something to be added thereto, the majority of my students reply ”Yes!”, indicating what exactly is to be added.
I’ll present a detailed vivisection of the issue in a separate chapter by way of proving that the Williams Alligator is but 50% effective.
Fig. 4. H1 EUR chart as of April 12, 2005. (See Note below)
The Alligator’s jaws display upward opening with a fractal formed at 1.3006. According to Williams, one should enter long one point higher, i.e. at 1.3007. Upward motion continues extra 11 points. Then the rate sharply swivels to fall down by 170 pts.
Another example.
Fig. 5. H1 EUR chart as of April 22, 2005. (See Note below)
Please, figure out 1.3094, 16 pts above the previous fractal, following the Alligator upward opening. Thereafter, a sharp down swivel covering 140 pts.
Hundreds of similar examples may be drawn. But what are the implications?
With the Alligator’s mouth opened, 50% of entries should be pro-Williams while the outstanding 50% - counter-Williams (i.e. vectored opposite to the Alligator mouth opening). When embarking on Forex, You must possess clear knowledge of the difference between either of the above 50%-portions. Otherwise…, You are doomed to loose even if You follow Williams’s technique, let alone other ones.
Even my students are in the position to advise what is to be added to Alligator in order to realize proper entry vectoring. Least of all would I want this example to be taken as a personal criticism of Bill Williams, whose contribution to the Forex theory is a significant one. And the majority of traders, like me, used to begin earning after studying HIS books. But not to go astray…, even without any addenda Williams managed to make a tremendous fortune, since a skilled trader (moreover being the Alligator’s father) is capable to differentiate between a steady travel and a pullback, or, say, a flat, or, visa versa, a trend low for the entry to be vectored oppositely. It is all fairly understandable for an experienced trader. But what about beginners as regards their interpretation of a flat, a recovery or a trend change?
These folks are sure to require assistance, especially, in information not presented in literature on Forex.
Without this knowledge a trader will never perceive the ABCs of stable daily earnings. But why the Forex scholars do not clear out the issue? This query is to be addressed to them, not to me. While reading these opuses, I am getting horrified at the fact that we are being foisted expensive high-sounding titled books, which are not going to ever teach a trader how to attain profits at the market.
Let’s open one of them (E. Nayman’s “Trader’s Minor Encyclopedia” and “Master-trading: Secret Files”) to get the understanding of the way almost all the books on Forex are written and supposed to have the price of USD20-100.
You may agree or not, but the name looks very beautiful and pretentious: “Master-trading: Secret Files”, 320 pages of sheer secrets…
HOWEVER, I HAVEN’T FOUND ANY SECRETS THERE! You are welcome to discuss an argue Yourself:
1. “The interrelation between fundamental factors and exchange rate dynamics” being a detailed story of how a country’s macroeconomic growing, benign rumors trading and political stability promote the exchange rate growth.
A “valuable” secret to be practically encountered in any Forex edition. But below is a real FA secret (not paid any attention to by Nayman): why does currency use to reverse against its country’s economic news? A whole chapter here will be dedicated to the issue.
2. “Construction of two moving averages on a single chart and twin combinations thereof”. The author furnishes a “wise” recommendation: entries should be made in the direction the MAs diverge (adding secretly that the most effective MA combination is 21, 55, 89, etc., as per Fibonacci).
The pseudo-secret nature of the above recommendation underlies the fact that any MA combination (should it be 21+55, as the author’s; 10+20 as in many Western trading systems; 5+8+13 as per B. Williams or 1+21 as used by numerous traders) yields the same results.
Ok. It all looks great. However, E. Nayman et al., seem to have circumvented the MA intersection chief secret, through which traders suffer constant losses: a “lighter” MA has crossed a “heavier” one, say, upwards, but… thereafter there is sharp downturn resulting in the MAs intersection again.
Fig. 6. GBPUSD H1 chart as of April, 21-26, 2005. (See Note below)
A fivefold reciprocating crossing of MA 21 and 55. You are welcome to calculate traders’ losses.
Now, let’s call it a day with examples. The MA intersection technique operates perfectly in certain circumstances, while turning out impotent in others, thus inflicting losses upon traders. No criteria have ever been stipulated by Forex scholars as to entries to be effected pro- or counter-divergence of moving averages.
3. MACD construction and analysis. What sort of secret may one expect from the following statement of Nayman’s: “a subsequent high being lower than the preceding one suggests a bullish trend depletion or even its changing with the same being visa versa under minimum MACD values”. Much of a secret, isn’t it? I thought it were the MACD operation principle, familiar to any Forex novice. The secret-fancier B. Williams hasn’t even taken effort to advise to perform inputs change from 9, 12, 26 into 5, 34, 5 to provide for a lag killer.
Assuming the above, authentic MACD secrets are not paid any attention to by scholar, which fact inflicts losses upon traders. The situation comes into effect, when upon a divergence formation, no trend change is observed with another same-trend wave taking place instead.
Fig. 7. GBPUSD H1 chart as of April, 2005, where MA21 crosses MA55 with slight rise and sharp downturn. (See Note below)
Another example:
Fig. 8. GBPUSD H1 chart as of May, 2005: a divergence with MA10 upward crossing MA21; a brief nudge up to 1.8916 and a sharp downturn. (See Note below)
As different from Nayman and other Forex scholars, we’ll touch in detail upon the ways to detect when MACD is trustworthy as a trend reversal attribute and when it is not.
4. TA classical patterns. One can not help smiling at the author sharing a secret of “head’n’shoulders” and “double bottom” patterns, being studied by beginners at the earliest lectures on Forex.
And here goes a real key secret: in what cases the patterns are indeed indicative of a reversal but in what cases brokers trap TA pattern-fanciers? Is there someone doubting the fact that patterns are known not only to traders, but as well to brokers with their mouths watering to make a rod for the backs of lovers and connoisseurs of the above patterns, just like on the sample chart below:
Fig. 9. GBPUSD H1 chart as of May, 09-11, 2005, a classical “inverted H&S” (See Note below)
At 1.8871 there’s an impetuous upward breakthrough, the Alligator rotating upwards, MACD above zero, MA8 having intersected MA21 upwards, the Williams vaunted Awesome Oscillator signaling long entry, the Accelerator Oscillator pointing up… nevertheless, the rate reaches as far as 1.8916 and slips down to 1.8481 by 450 pts.
To be noted: much worth scrutinizing is the phenomenon of Nayman’s “Trader’s Minor Encyclopedia” and “Master-trading: secret files” purported at understanding why over 90% of traders turn losers after reading the books.
The solution, to my mind, is that the above opuses are but good “ABCs OF FOREX” thus giving birth to all Nayman’s merits and demerits.
The guy is primarily awardable for having spared beginners’ paying USD50-200 to various Forex training courses or academies. Instead, one can download and study Nayman’s books, whose extracts are, by the way, quoted to trainees during their studies.
Nayman is generally to be expressed gratitude to, because of his having laid out the Forex basic course in a competent, popular and accessible way.
This is the point, I elucidate to every beginner, being introduced to me: first one should scrutinize Nayman’s books, then only it’s worth discussing hooks and crooks of earning at Forex instead of loosing.
Nevertheless, there is a chief Nayman’s self-delusion about his folios really being in no way secret files with no one being able to find anything new to enable oneself to improve one’s Forex earnings. These books containing neither unique techniques nor non-standard solutions are famous for the generalization and systematization of what has been the Forex knowledge prior to Nayman.
But this fact is not realized by majority gripped by the “Master-trading: Secret Files” fascination, who open live accounts and turn losers inevitably.
Shortly upon their pre-mature success on demo accounts these folks hastened to open live accounts and faced losses. But since the Dealers’ staff managed to convince them in the incidental nature of the above losses, the folks ventured to go live again and did again turn to be deposit killers.
With these facts being proclaimed, I don’t hold it appropriate to call any statistics science for help. Any sensible man is to get the understanding of the above losses as not being of an incidental nature.
There could be NO OTHER WAY about it.
The next trader training level comprises books by B. Williams: “Trading Chaos” and “New aspects of exchange trading”, where the author propounds his own Forex trading methods along with advertising the other ones’, viz. Elliott’s.
My book, “Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders” is purported at developing of THAT particular school of training traders to practical operation at Forex.
Hardly will anyone object to the fact that B. Williams will disclose his Forex intimacies free of charge. Neither will he furnish their 100% disclosure after being paid to.
In all his splendor, Williams possessed sufficient knowledge to;
- to share A PORTION of his secrets in his “Trading Chaos”;
- to share A PORTION of his secrets as a paid training;
- not to share A PORTION of his secrets in the least.
My book, “Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders” is also dedicated to teaching how the Williams secret methods are to be decoded properly to ensure successful Forex trading capabilities.
Each of my book’s 20 chapters is permeated with a common logic aimed at finding relevant discrepancies in literature on Forex and at presenting my personal technique of Forex trading.
B. Williams declares being capable of analyzing tens of currency pairs (of 140-bar history each) that within tens of minutes, but in no way does he explain how to, whereas, I explain, that it’s feasible for any wide-screen trader, provided my computer monitor being 3-currency capable only (see: “Ally and adversary currencies”).
B. Williams sings about his magic Alligator, while I disclose and eliminate its pitfalls by, say, adding a MA233 thereto. This arrangement visualizes the whole of the 4 potential currency travel options: up/down above MA233; up/down under MA233.
B. Williams lists a stop-loss to be a “safety cushion”, whereas I disclose and eliminate its shortcomings by way of alternatively using my own pending orders.
B. Williams hold trades volume to be authentic resistance breakthrough criterion, while I quote reasons by which trades volume turns to be deceptive on Metatrader platforms (thanks to the banks Consortium) and I introduce my own levels true/false breach criteria.
Now, regarding trading on news, I demonstrate the way one can turn a loser if trade like all the others and I offer my own on-news trading style.
(See continuation of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part II)
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
Article Source: http://EzineArticles.com/?expert=Vyacheslav_Vasilevich
Following the burn down of their first deposit trader’s plunge themselves again into scrutinizing Forex scholars, in this manner suffering losses of the second, the third and subsequent deposit. I will hereinafter try to elucidate where from the above regularity grows, so that no trader repeats his forerunners’ mistakes.
This statistics is common knowledge: 90% of traders constitute Forex losers… But the figure has always been giving rise to a leviathan of my doubts. It isn’t because of somewhat different 95%-5% loser-to-winner ratio quoted in the Van Tarp and Brian June “Intraday trading: secrets of mastership”. With 90% quoted universally, there naturally emerges the question, as to whether there is someone capable to check, to specify or to disprove the above figure.
NO ONE IS, besides the directors of largest Western banks providing streamline Forex quotes, but having never raised the issue.
WHY? Because should this statistics be published, there will be sharp and ultimate decline in number of those chasing easy profits from the world Forex market. Otherwise banks would not keep mum in advertising purposes. Neither would they be silent if losers constituted at least by few points less than 90%. In any advertising, customer attraction is ensured by quoting beneficial maxima and non-lucrative minima. This has always been, is being and will always be a universal practice.
As a conclusion, 10% Forex winners is a maximum result among traders. It’s them, who have understood Forex market absolutely simple truisms and who attained steady daily earnings in amounts being gained by others within years or even the whole of life.
Certainly, those are to be recollected, who in late 80s were the first in the ex-USSR to grasp laws of commerce and who began accumulating their initial stock. The rules used to be so simple that presently any schoolboy or a first-year student can show the way the capital might have been easily scraped up and augmented on the USSR debris and in the course of market relations being established in the post-Soviet space.
I do exactly allow for the fact that through the years a new generation will be laughing at the way we are now incapable to comprehend the laws, where under currency rates either spike up or fall down, all of a sudden.
With this provision, those seeking fast money at Forex have a much greater time limit than the ones engaged in capital building in the post-Soviet space (Forex market is incommensurably greater than that in the ex-USSR), but not to the extent thought by many.
By now trends are thoroughly less numerous than they used to be 10-20 years ago. By way of taking a glance the charts history You are in the position to understand the way traders used to earn under 20- 40 pts spread, commission and slippage. A trend was followed by a trend at that epoch.
AND WHAT’S NOW? Nowadays many of traders are impotent to gain under 3 pts spread without commission and slippage.
Thus, this book is intended for those willing to perceive Forex market laws.
In order to get understanding of the way 5-10% of successful traders obtain profits, let’s at the outset analyze the reasons and the way the outstanding 90% of traders suffer losses. The 90%-figure looks scaring, to say nothing of 95% or 98%. It occurs despite the amount of literature on the issue equals to hundreds of fundamental books, written by authors, having gained capitals expressed by means of more than 7-digit figures (G. Soros, B. Williams, A. Elder, T. Demark).
Thus, the above minimum of 90% of smart, well-read, broad-knowledged people:
- scrutinize the really great traders’ heritage;
- open accounts with Forex Broker's and banks, start trading and…
- loose funds up to complete rout!
AND WHERE’S THE LOGIC? The answer springs to mind by itself... There’s something wrong in the literature (by the way, recognized throughout the world, where the deposit-killing statistics is as disappointing as it is in our country) so long as its studying yields such oppressive results.
STRANGE? No, rather natural, than strange on account of the following:
1. Being a great trader is not indicative of everyone being a great teacher.
2. Multitude of rules elaborated by scholars 10-40 years ago, has grown obsolete, since the Forex market is changing.
3. The scholars HAVE NOT revealed ALL the secrets even WITHIN THE FRAMEWORK OF THE THEN
FOREX, therefore by now their advice and recommendation turn out either obsolete or naïve.
Thus, once one’s advice and recommendations bring every 9 of 10 market participants to loose their money in each country, where one’s books have used to be published and have enjoyed all sorts of hosanna in the press, THEN ONE IS NONE OF A TEACHER.
Naturally, no trader will reveal his professional secrets to the full. But when studying Forex literature one gets astonished by a negligible extent the above secrets are “confided” at all, with a book on Forex containing 99% of common truth and 1% only of useful novelties. But should one train up even several thousands perspective traders, one will in no way burden oneself with competitors, due to the Forex market huge sale nature. Beyond a shadow of a doubt the above traders are really great. You may agree or not, but anyone, having earned USD1 bn or more, deserves being named “great”. So, one’s books should be published as memoirs. I am not attaching any irony hereto, since these persons have acquired gains by virtue of their minds and labor, as opposite to Rockfellers, who inherited their fortunes or to Russian oligarchs, who either stole or got their capitals dirt-cheap from state authorities.
Hopefully, understandable is the difference between such editions and manuals for beginners.
G. Kasparov, say, is far from writing manuals for chess beginners, since the job can be better completed by others with this fact not at all undermining Kasparov’s being a great chess player. And his advice and recommendation is sure to be of interest rather to a close circle of grand masters, than to those having touched the chess for the first time.
Actually Kasparov is but to be respected for not being tempted by the lust for fast money, by virtue of his name in the chess world and by way of cooking up manuals for beginners.
At Forex, by contrast, and for some reason, everyone deems oneself a teacher, which fact results in millions educated people worldwide leaving stock market being disappointed, angry with an inferiority complex life-time pursuit.
And hence, the unanswered question for them: is that all a fraud or not, since gains are midget, whereas losses are titanic?
I am recalling the book titled “The Alchemy of Finance” by G. Soros (the one I’ve read in early 90-s). I admit, it’s interesting, instructive…, but it is all narrated in so an inarticulate and tangled manner. As indicated in the foreword by an American investor, the theory has hardly been understood by few only.
So what’s the use of writing in such a manner? A theory may generally be complicated to any extent, BUT IT MUST BE wrapped in a simple, clear and understandable wording.
You are welcome to attempt to read the above book once You have time to. Shortly, the Soros reflexivity theory of the countries’ cyclic development may easily bear a couple-sentence confinement:
1. Following liberation from totalitarian yoke, a country is granted credits, then, there is a rapid growth and flourish of economy.
2. As soon as the above credits are to be paid back, a country’s economy faces a natural recession.
Is it as difficult? The question may be addressed to a schoolboy (to say nothing of an American investor): when should those countries’ companies’ shares be purchased and when they are to be advantageously sold in order to acquire maximum profit? What’s going to happen in case one is too late to sell the shares, shortly exhibiting an impetuous growth in price?
Propounded long before, the Soros theory has been entirely corroborated in August, 98 by the dismal practice established in Asian and Pacific countries and later in Russia.
There still is another question: how inarticulate should Soros have been to enable his theory to be grasped by few only?
The second part of the book is not worth retelling. Reading its original is sure to be much more instructive with my annotation leaving no conundrums therein.
The theory is permeated by Soros’s strategy: enter long on what’s shortly going to enjoy price growth with a 100% probability and “pull out” Your money along with profits before the companies enter crisis, thus facilitating bankruptcies thereof.
This is the way I clearly lecture my students on Forex-related complexities, thus conveying my logics to them. Despite its own complexities (news, TA, corrective actions, etc.), Forex is essentially reduced to a very simple truth: at a certain moment one should not be late with going long or short on a currency with “tertium non datum”.
And when asked if the Williams Alligator needs something to be added thereto, the majority of my students reply ”Yes!”, indicating what exactly is to be added.
I’ll present a detailed vivisection of the issue in a separate chapter by way of proving that the Williams Alligator is but 50% effective.
Fig. 4. H1 EUR chart as of April 12, 2005. (See Note below)
The Alligator’s jaws display upward opening with a fractal formed at 1.3006. According to Williams, one should enter long one point higher, i.e. at 1.3007. Upward motion continues extra 11 points. Then the rate sharply swivels to fall down by 170 pts.
Another example.
Fig. 5. H1 EUR chart as of April 22, 2005. (See Note below)
Please, figure out 1.3094, 16 pts above the previous fractal, following the Alligator upward opening. Thereafter, a sharp down swivel covering 140 pts.
Hundreds of similar examples may be drawn. But what are the implications?
With the Alligator’s mouth opened, 50% of entries should be pro-Williams while the outstanding 50% - counter-Williams (i.e. vectored opposite to the Alligator mouth opening). When embarking on Forex, You must possess clear knowledge of the difference between either of the above 50%-portions. Otherwise…, You are doomed to loose even if You follow Williams’s technique, let alone other ones.
Even my students are in the position to advise what is to be added to Alligator in order to realize proper entry vectoring. Least of all would I want this example to be taken as a personal criticism of Bill Williams, whose contribution to the Forex theory is a significant one. And the majority of traders, like me, used to begin earning after studying HIS books. But not to go astray…, even without any addenda Williams managed to make a tremendous fortune, since a skilled trader (moreover being the Alligator’s father) is capable to differentiate between a steady travel and a pullback, or, say, a flat, or, visa versa, a trend low for the entry to be vectored oppositely. It is all fairly understandable for an experienced trader. But what about beginners as regards their interpretation of a flat, a recovery or a trend change?
These folks are sure to require assistance, especially, in information not presented in literature on Forex.
Without this knowledge a trader will never perceive the ABCs of stable daily earnings. But why the Forex scholars do not clear out the issue? This query is to be addressed to them, not to me. While reading these opuses, I am getting horrified at the fact that we are being foisted expensive high-sounding titled books, which are not going to ever teach a trader how to attain profits at the market.
Let’s open one of them (E. Nayman’s “Trader’s Minor Encyclopedia” and “Master-trading: Secret Files”) to get the understanding of the way almost all the books on Forex are written and supposed to have the price of USD20-100.
You may agree or not, but the name looks very beautiful and pretentious: “Master-trading: Secret Files”, 320 pages of sheer secrets…
HOWEVER, I HAVEN’T FOUND ANY SECRETS THERE! You are welcome to discuss an argue Yourself:
1. “The interrelation between fundamental factors and exchange rate dynamics” being a detailed story of how a country’s macroeconomic growing, benign rumors trading and political stability promote the exchange rate growth.
A “valuable” secret to be practically encountered in any Forex edition. But below is a real FA secret (not paid any attention to by Nayman): why does currency use to reverse against its country’s economic news? A whole chapter here will be dedicated to the issue.
2. “Construction of two moving averages on a single chart and twin combinations thereof”. The author furnishes a “wise” recommendation: entries should be made in the direction the MAs diverge (adding secretly that the most effective MA combination is 21, 55, 89, etc., as per Fibonacci).
The pseudo-secret nature of the above recommendation underlies the fact that any MA combination (should it be 21+55, as the author’s; 10+20 as in many Western trading systems; 5+8+13 as per B. Williams or 1+21 as used by numerous traders) yields the same results.
Ok. It all looks great. However, E. Nayman et al., seem to have circumvented the MA intersection chief secret, through which traders suffer constant losses: a “lighter” MA has crossed a “heavier” one, say, upwards, but… thereafter there is sharp downturn resulting in the MAs intersection again.
Fig. 6. GBPUSD H1 chart as of April, 21-26, 2005. (See Note below)
A fivefold reciprocating crossing of MA 21 and 55. You are welcome to calculate traders’ losses.
Now, let’s call it a day with examples. The MA intersection technique operates perfectly in certain circumstances, while turning out impotent in others, thus inflicting losses upon traders. No criteria have ever been stipulated by Forex scholars as to entries to be effected pro- or counter-divergence of moving averages.
3. MACD construction and analysis. What sort of secret may one expect from the following statement of Nayman’s: “a subsequent high being lower than the preceding one suggests a bullish trend depletion or even its changing with the same being visa versa under minimum MACD values”. Much of a secret, isn’t it? I thought it were the MACD operation principle, familiar to any Forex novice. The secret-fancier B. Williams hasn’t even taken effort to advise to perform inputs change from 9, 12, 26 into 5, 34, 5 to provide for a lag killer.
Assuming the above, authentic MACD secrets are not paid any attention to by scholar, which fact inflicts losses upon traders. The situation comes into effect, when upon a divergence formation, no trend change is observed with another same-trend wave taking place instead.
Fig. 7. GBPUSD H1 chart as of April, 2005, where MA21 crosses MA55 with slight rise and sharp downturn. (See Note below)
Another example:
Fig. 8. GBPUSD H1 chart as of May, 2005: a divergence with MA10 upward crossing MA21; a brief nudge up to 1.8916 and a sharp downturn. (See Note below)
As different from Nayman and other Forex scholars, we’ll touch in detail upon the ways to detect when MACD is trustworthy as a trend reversal attribute and when it is not.
4. TA classical patterns. One can not help smiling at the author sharing a secret of “head’n’shoulders” and “double bottom” patterns, being studied by beginners at the earliest lectures on Forex.
And here goes a real key secret: in what cases the patterns are indeed indicative of a reversal but in what cases brokers trap TA pattern-fanciers? Is there someone doubting the fact that patterns are known not only to traders, but as well to brokers with their mouths watering to make a rod for the backs of lovers and connoisseurs of the above patterns, just like on the sample chart below:
Fig. 9. GBPUSD H1 chart as of May, 09-11, 2005, a classical “inverted H&S” (See Note below)
At 1.8871 there’s an impetuous upward breakthrough, the Alligator rotating upwards, MACD above zero, MA8 having intersected MA21 upwards, the Williams vaunted Awesome Oscillator signaling long entry, the Accelerator Oscillator pointing up… nevertheless, the rate reaches as far as 1.8916 and slips down to 1.8481 by 450 pts.
To be noted: much worth scrutinizing is the phenomenon of Nayman’s “Trader’s Minor Encyclopedia” and “Master-trading: secret files” purported at understanding why over 90% of traders turn losers after reading the books.
The solution, to my mind, is that the above opuses are but good “ABCs OF FOREX” thus giving birth to all Nayman’s merits and demerits.
The guy is primarily awardable for having spared beginners’ paying USD50-200 to various Forex training courses or academies. Instead, one can download and study Nayman’s books, whose extracts are, by the way, quoted to trainees during their studies.
Nayman is generally to be expressed gratitude to, because of his having laid out the Forex basic course in a competent, popular and accessible way.
This is the point, I elucidate to every beginner, being introduced to me: first one should scrutinize Nayman’s books, then only it’s worth discussing hooks and crooks of earning at Forex instead of loosing.
Nevertheless, there is a chief Nayman’s self-delusion about his folios really being in no way secret files with no one being able to find anything new to enable oneself to improve one’s Forex earnings. These books containing neither unique techniques nor non-standard solutions are famous for the generalization and systematization of what has been the Forex knowledge prior to Nayman.
But this fact is not realized by majority gripped by the “Master-trading: Secret Files” fascination, who open live accounts and turn losers inevitably.
Shortly upon their pre-mature success on demo accounts these folks hastened to open live accounts and faced losses. But since the Dealers’ staff managed to convince them in the incidental nature of the above losses, the folks ventured to go live again and did again turn to be deposit killers.
With these facts being proclaimed, I don’t hold it appropriate to call any statistics science for help. Any sensible man is to get the understanding of the above losses as not being of an incidental nature.
There could be NO OTHER WAY about it.
The next trader training level comprises books by B. Williams: “Trading Chaos” and “New aspects of exchange trading”, where the author propounds his own Forex trading methods along with advertising the other ones’, viz. Elliott’s.
My book, “Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders” is purported at developing of THAT particular school of training traders to practical operation at Forex.
Hardly will anyone object to the fact that B. Williams will disclose his Forex intimacies free of charge. Neither will he furnish their 100% disclosure after being paid to.
In all his splendor, Williams possessed sufficient knowledge to;
- to share A PORTION of his secrets in his “Trading Chaos”;
- to share A PORTION of his secrets as a paid training;
- not to share A PORTION of his secrets in the least.
My book, “Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders” is also dedicated to teaching how the Williams secret methods are to be decoded properly to ensure successful Forex trading capabilities.
Each of my book’s 20 chapters is permeated with a common logic aimed at finding relevant discrepancies in literature on Forex and at presenting my personal technique of Forex trading.
B. Williams declares being capable of analyzing tens of currency pairs (of 140-bar history each) that within tens of minutes, but in no way does he explain how to, whereas, I explain, that it’s feasible for any wide-screen trader, provided my computer monitor being 3-currency capable only (see: “Ally and adversary currencies”).
B. Williams sings about his magic Alligator, while I disclose and eliminate its pitfalls by, say, adding a MA233 thereto. This arrangement visualizes the whole of the 4 potential currency travel options: up/down above MA233; up/down under MA233.
B. Williams lists a stop-loss to be a “safety cushion”, whereas I disclose and eliminate its shortcomings by way of alternatively using my own pending orders.
B. Williams hold trades volume to be authentic resistance breakthrough criterion, while I quote reasons by which trades volume turns to be deceptive on Metatrader platforms (thanks to the banks Consortium) and I introduce my own levels true/false breach criteria.
Now, regarding trading on news, I demonstrate the way one can turn a loser if trade like all the others and I offer my own on-news trading style.
(See continuation of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part II)
Note:
Full text of this article and pictures of examples http://www.masterforex-v.su/
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
Article Source: http://EzineArticles.com/?expert=Vyacheslav_Vasilevich
Friday, August 7, 2009
Forex Secret - Forex Fundamental Analysis Authority In FX Rates Movement
The chapter’s abstract: a trader attains much greater success at FOREX unless he is reading analytics by non-trading economists. Here’s some information for meditation below:
What useful can one be taught by FOREX reviews, cooked up by analytical economists, who are incapable of teaching themselves to be FOREX successful?
FOREX economic indicators (released news statistics) are compiled the way required to be interpreted by analysts, who, by the end of the day, may explain any rates travel as the only naturally determined one.
Important objective economic indicators (GDP, Balance of payments, etc.) are leveled up with the subjective ones (University of Michigan, Chicago sentiment, etc.) which in no way may be checked up.
Economic statistics is frequently forged even at the supreme level.
Here is my attitude as a trader towards FOREX fundamental analysis and to its impact upon exchange rates dynamics.
At the outset, we’ll get to scrutinize the gambling done by FOREX analytical economists, who are striving to convince traders in exchange rates being tied up to some ersatz fundamental analysis data, viz. to economic indicators being released under daily streaming news.
We will also present technique background used by the banks’ Consortium to manipulate news and forecasts the way to vector the rates as any certain day requisite.
The earlier example dated April, 01, 2005 (when the trend has reversed against the logics of all the news released that day). The situation is an absolutely typical occurrence at FOREX, where in 50% cases rates are going DOWN the news vector while in 50% cases – AGAINST the news released. Any analysts’ venture to far-fetch the fundamental analysis to FOREX rate quotes has long caused me nothing but smile.
The FOREX analysts’ logics is as follows: as soon as the rates reverse against the news, next day they have the explanation that nothing unexpected has occurred with the market having already been anticipating the news, and these news have already been accounted for by traders in current quotes.
Or, else, the market (or traders or other) spotted in the news release not at all what it has read earlier in the streaming news. As a result, the rates by, normal logics, staged a sharp swivel to move in sort of a wrong direction.
But, my God, are traders really in need of the above analysts’ para-economic freaks on fundamental or other analysis, once THE RATES HAVE ALREADY MADE THEIR WAY in the said wrong direction?
And why, during uptrend, no analyst has recommended going short on a currency instead of going long in case actual news is superior to the estimate? I have never come across the case.
Analysts should have better derived a simple mathematical formula (hopefully they did have studied at universities) as to a FOREX pair average points travel prior and post critical news (National Bank percent rate hike, Balance of payments, etc.).
By virtue of this formula we, traders, could do some calculations to estimate whether either everything is already accounted for in the current rates or further 100-200 pts grow/decline is to be expected.
But there’s nothing of the kind!
And now, here’s my standpoint as a FOREX trader on why traders will never end up by being supplied with the above mathematical prognosis formula by analysts. I will also provide backgrounds of when pro-news and counter-news entries should be effected.
Fundamental Analysis CRITERIA BIASED INOBJECTIVE NATURE. Fundamental Analysis BEING ABANDONED IN FAVOR OF DAILY NEWS SUBSTITUTE.
1. All the Fundamental Analysis economic indicators are made a muddle of. See, for instance, 54 US economic indicators, ABC-arranged by analysts instead of being USD importance-rated http://www.forexite.com/forex_for_ beginners/us_economic_indicators.html
2. No difference is made between Fundamental Analysis, the state monetary policy and ersatz fundamental data-related current news (viz.: Chicago business activity index, Michigan University consumer sentiment index, National Managers’ Association business activity index, etc.). But, in what way is the Michigan University consumer sentiment index relevant to the US economy Fundamental Analysis? Is there any other name to be applied to this index besides the name of an ersatz Fundamental Analysis?
3. A portion of economic indicators organic to the above ersatz Fundamental Analysis evoke my personal uncertainty as regards their figures’ objective nature and as regards not being tailored to order of those supplying quotations to the FOREX market.
Let us go attentively once again look into these indices with the view to clarify their manipulation capability with no exposition danger.
- PHILADELPHIA FED INDEX constitutes the polling results of Philadelphia manufacturers as to their sentiment towards the current economic situation:
- Why Philadelphia, not California or Texas.
- May there be any difference in obtained figures depending upon the type of manufacturers being interrogated?
- Is there anyone in position to verify and confirm the above manufacturers’ polling results?
- Consumer price index (CPI), reflects consumer price level per a “basket” of goods and services. But the CPI may be properly built up, if prices differ supermarket to supermarket, from supermarket to conventional shop, from shop in the center and shop in an outskirt, from shop in a capital to shop in a province, from sell off period to new articles presentation period, etc.?
Is it imaginable, how figures can be manipulated in favor of those, requiring them so badly? Or is there anyone to convince me that it’s very hard to change 0.4% into 0.2% or 0.6% depending upon a customer’s demand at any given moment?
- Michigan consumer sentiment index constitutes the results of customers’ polling on current economic situation confidence. No comments, since it looks like interrogating no-one-knows whom on a no-one-knows subject.
- Consumer confidence. A doubtful attempt to measure consumers’ optimism.
-NAPM (National Association of Purchasing Managers) services index is representative of service managers polling results, purported at estimation of in-branch changes taking shape. Very often this index is dictated rather by psychological factors, than by actual state of affairs (???).
- Chicago PMI index. It is closely tracked due to being released shortly prior to NAPM. The index exerts strong authority over the market by prompting a real NAPM value to be released. Please, refer to NAPM above.
- Atlanta Fed index presents polling results of Atlanta industrials on current economic situation (???).
As understandable, the list of these ersatz Fundamental Analysis economic indicators may go on along with buildup of questions and doubts.
4. There’s a so-called factor of anonymous economists’ estimates in relation to economic indicators preceding values.
I wonder WHO are these anonymous economists, each time allegedly interviewed by Dow Jones on their expectations from news to be released the following calendar week? And WHY is THEIR opinion exactly presented to be the whole market’s anticipation of THAT data exactly, but not any other? Below are some sample potential manipulating the world traders’ opinion, frequently encountered by myself:
a frankly superior estimate leading to benign actual data being inferior to the prediction (I repeat, a no-one-knows whose prediction) and resulting in a sharp rates reversal by “disappointed” traders as later on indicated by analysts.
a frankly inferior estimate leading to malignant actual data being superior to the prediction, thus pushing the rates forward with no other market’s objective grounds.
TO SUM IT UP, leveled with objective economic indicators (GP, etc.) are ersatz Fundamental Analysis ones, manipulation by virtue whereof creates simulacrum of the rates being tied up to daily news and the state’s Fundamental Analysis. With prediction manipulation capability added hereto, it turns feasible to faultlessly project traders’ activities throughout the world. But is it accidental or not that worldwide traders’ training programs are as similar as 90-95% losers figures?
FUNDAMENTAL ANALYSIS CLASSICAL MACROECONOMIC INDICATORS
A true Fundamental Analysis, based on leading world economies comparative macroeconomic characteristics as well as on their currencies power/weakness, may be experienced not through indices of universities and various US managers’ associations, BUT through economic indicators, recognized by all the world leading economists. These are:
- GROSS DOMESTIC PRODUCT (GDP), the principle national economy condition reflector. According to economy development Keynesian model, GDP=C+ I + S + E – M, where: C is consumption, I is investments, S is state expenditures, E is exports, M is imports. GDP is expressed on terms of an index in relation to a previous period.
- STATE BUDGET, constituting a correlation between state’s incomes and expenditures.
- BALANCE OF PAYMENTS, correlating the country’s incoming and outgoing payments and falling into three major components: trade balance, balance of services and non-commercial payments (invisible transactions balance) and balance of capitals and creditors flow.
- UNEMPLOYMENT RATE in the country, being a 3D structure of:
frictional unemployment, related to higher remuneration job hunting or expectation after layoff (not a negative factor, since it leads to more rational labor resources allocation);
structural unemployment, emerging from labor demand decline in any industrial branch due, for instance, to technological development or change on consumer demand structure;
cyclic unemployment, arising during overall economic recessions.
- MONEY SUPPLY INDICES (M0, M1, M2, M3). M0 = cash circulation; M1 = M0 + cheque deposits; M2 = M1 + cheque less saving accounts + money market deposit accounts + minor deposits (less than USD100K) + money market mutual funds; M3 = M2 + large deposits (in excess of USD100K). These are practically no market influential.
- NON-FARM PAYROLLS.
- GOLD AND CURRENCY RESERVES, being a state’s gold and currency backup stored in central bank and in financial institutions, as well as state’s gold and currency assets with international creditors.
- NATIONAL DEBT, constituting state liabilities to physical persons, legal entities, foreign countries, international institutions and outstanding international law subjects.
- REFINANCING RATE, being percent rate utilized by the central bank in granting credits to commercial banks on a refinancing basis, etc.
MACROECONOMIC INDICATORS MANIPULATION ATTEMP AT FOREX.
Macroeconomic indicators are of objective nature, thus being “uncorrectable”, the way it may be done to various Chicago, Atlanta and Michigan indices.
That is why at FOREX we often come across surprising interpretations of the above objective indicators, recognized by the world’s leading economists.
1. Macroeconomic indicators are leveled with ersatz Fundamental Analysis ones, viz.: the University of Michigan one, as above indicated.
2. Absolutely in objective criteria are selected to estimate macroeconomic indicators. For instance, weekly number of jobless claims is released instead of its monthly fluctuation dynamics analysis per its three aspects (frictional, cyclic and structural). This data s released on Thursdays, 08:30 EST, New-York with a disclaimer that “the figures are not always reflective of the actual situation”. The data is under frequent perversion due to short-term factors such, as federal or local holidays. The question is WHAT IS IT ALL FOR?
3. The macroeconomic indicators role is being undermined in every manner. See below:
State budget exerts but an insignificant authority over the market (?!). Curious to know WHY? Is it that the UMich index is more important in understanding the US economy prospects and its perspective currency rating?
http://www.forexite.com/forex_for_beginners/us_economic_indicators.html
Balance of payments is of limited influence on the market (??).
http://www.forexite.com/forex_for_beginners/us_economic_indicators.html
4. Totally different indicators are being quoted when analyzing the leading economies’. See:
the USA: M1, M2, M3 money supply, whereas M3 only for Germany with no indicator as such for the UK; the UK: PPI output, PPI input with no indicator as such for other countries.
RELATION BETWEEN Fundamental Analysis MACROECONOMIC INDICATORS AND FX RATES
Certainly, the relation between Fundamental Analysis and current FOREX rates does exist, however it is greater in depth and mediation, than presented to traders by the majority of analysts, starting from dealers’ basic training.
In my opinion, this DIRECT relation between Fundamental Analysis and FOREX trending finds manifestation on W1 and MN charts only.
Those, supplying us with FOREX quotes, may be “playing” and “fooling” traders within H1 and even H4. But changing trend at W1 and MN timeframes in favor of the USD and establishing the EUR price, say, cheaper than that of the USD in 2005 means going AGAINST depth fundamental data. Those will never be off to commit sort of a thing.
A currency price and that level of fundamental data are permanently coincident. This is not at all the ersatz Fundamental Analysis, whereto the Consortium has schooled the majority of traders (not the University of Michigan index, not the Chicago Managers Association index, not the last month Consumer Confidence index (?!), etc.), and by virtue whereof the aforesaid traders majority have got completely confused in a seemingly elementary issue of entry in favor of the news and against the news.
Hence, below is the USA and Europe macroeconomic indicator related PRACTICAL CONCLUSION for traders: data as of early summer, 2005 are definitely indicative of the incapacity of the long-term USD downtrend change for its uptrend (W1 and MN charts) within the year relative to the EUR, the GBP and outstanding “allies” (See chapter on “Which FOREX indicator is the most impartial and accurate. Ally and adversary currencies”).
Thus, following each short- or medium-term EUR’s recess, its new growth will be witnessed with earlier historic peaks potential breakthrough. The contrary option of the EUR being cheaper than the USD is a NO-NO, exactly due to fundamental macroeconomic indicators, where under European economies enjoy faster development than the USA.
RELATION BETWEEN ERSATZ Fundamental Analysis AND FOREX QUOTES.
Any ersatz Fundamental Analysis indicator data release (UMich, Chicago indices, etc.) is but the GROUND to urge currencies up-down reciprocation, as a function of tactical objectives of those supplying FOREX quotes.
A PRACTIAL CONCLUSION for traders: I claim no relation between ersatz Fundamental Analysis and FOREX quotes from the intraday trading standpoint.
Upon the above news the banks Consortium may drive the rates in any direction, whereas FOREX analytical economists will snatch on You proving and explaining that there is no unexpected occurrence and that the market with proper advance account has been long anticipating the news released, etc., etc, see aforesaid.
That’s the reason for no analyst to venture to recommend entry against the news prior to its release. NO ONE knows in advance where the rates will travel under the Consortium’s will after the news.
This is the level of technical analysis, not that of Fundamental Analysis.
Being a trader, I observe 3 rules when jobbing on news:
exit all positions prior to the news release; if not – then place pending orders behind resistance and support levels to be a stop-loss “safety cushion” as per B. Williams.
don’t enter upon the first candle after the news release;
enter immediately after the Consortium has definitely indicated the way it interprets the news released (see “Entry and exit manual” on entries and exits under the news released).
IN CONFIRMATION OF MY CONCLUSION ON POTENTIAL CURRENT NEWS AND OTHER STATISTIC DATA FORGERY, I refer to “Dawn of dollar empire and end of “Pax Americana”” by A.B. Kobyakov and M.L. Khazin, (“Veche” publishing house, 2003, 368 pages), see on http://paxamericana.narod.ru/book/paxamericana.zip.
The authors thereof have arrived at conclusions still more aggravating for traders and quoted facts on STATISTICAL DATA FORGERY AT THE LEVEL OF THE USA STATE STATISTICS, see CHAPTER V. STATISTICS AT CURTESY OF ECONOMICS:
“The earlier published data summary maintained, that during seven years from 1995 to 2001 inclusive, the USA boasted positive balance of payments of USD203.2 BN, while the revised data uncovered negative balance of payments of USD89.8 BN (chart 24) within that period. With the account to Q1 2002 the above deficit amounted to USD100 BN already.
EVERYONE IS FREE TO READ IT IN GREATER DETAIL AND TO DRAW UP ONE’S OWN DEDUCTIONS!
A serious Russian “Novaya Gazeta” newspaper (08.09-11.09.2005, in “Writings on the water”, see p. 15) has reiterated on another stock market vivid instance, where for the sake to meet some national (or, probably, SOMEBODY’S) interest, the US governmental circles and information agencies have set on a worldwide advertising of a “greatest modern discovery of nanotechnology: a single-molecule transistor”.
The newspaper quotes: “Prospects were breath-taking. The “fourth wave” subject attained unusual fashion and attraction for investments. Nanotechnologies fell under the US government strictest attention being the issue of strategic importance. Hardly imaginable was the fact that all the sensation would end up in a classic “panama” or a shady enterprise similar to our default. Scientific companies share prices skyrocketed off-scale, whereas 30-yo Jan Hendrik Shone, the main publications author has been thought to be next year’s Noble Prize nominee. It all would have been sliding on smoothly, unless the results of over 100 Shone’s articles turned out to have not obtained confirmation. Tampering has been proved as regards three key reports on single-molecule transistor.
As a result Shone faced being fired along with sharp decline in scientific companies share rates. The companies have been stung for USD100BN approximately, the amount being suspiciously close to the Iraqi war (started only 3 months later) US government expenditures.
An infinite number of similar sample situations may be drawn, with statistics turning into a falsifier.
Hence, the question is natural: what’s the way of a trader using Fundamental Analysis statistics to build up FOREX strategies, provided that at least part of data is forged to someone’s benefit?
I don’t hold it reasonable to go deeper into the issue. A FOREX trader’s gains may not be facilitated by this issue’s deep study.
To get a comprehension of FOREX currencies logics, the simple knowledge is indispensable of WHO, HOW and BY WHAT REASON supplies FOREX quoted to traders. By far we have but only answered WHO are those Internet users to furnish quotes to traders.
Identically, no use sinking into the “BY WHAT REASON” the quotes are supplied at FOREX. Please, attempt yourself to answer by virtue of a counter-question: if You (not the Consortium) have invented a financial result-oriented game with clients – WHO IS SUPPOSED TO BE THE WINNER (the game organizer or clients)?
Hopefully, I have beaten off some green traders’ lust for instant gains at FOREX. You are facing a professionals market and becoming a profi yourself is the only way to earn money at this market.
The underlying chapters are concentrative of the attempt to elucidate the core question: HOW are the FOREX quotes presented, to enable the extra-exchange FOREX market traders to attain steady gains.
Below I will purportedly and repeatedly resort to examples from books by Viktor Suvorov (“Ice-breaker” et al.). Our target at FOREX is a twin sister of V. Suvorov’s one in history: to use official sources (i.e. absolutely verifiable materials) in legal understanding of what is camouflaged by the world’s richest market half-truth and falsehood in Fundamental Analysis and Technical Analysis methods, in published FOREX literature, in websites analytics and predictions, in actions of dealers making millions USD by means of their client traders’ accounts, etc.
Now, please, find below an intermediate conclusion being the starting point in understanding of currencies quote logics as well as in pinpointing of CORRECT and ERRONEOUS method of operation at FOREX proposed by Bill Williams and other scholars:
A trader is to be aware of one single thing – as different from stock markets, FOREX traders are not opposing each other, but they fight against the almighty FOREX Game Organizer – the world banks Consortium being capable of swiveling any national currency to any direction and at any moment by way of using numerous economic indicators, news releases, whose authenticity is not doomed to ever be verified by anyone.
Thus, how is one to realize, at a trend beginning, but not by its end, WHAT FOR and BY HOW MANY POINTS the Consortium is pushing currency rates?
Bearing the above in mind we will dedicate the following book chapters and the Masterforex-V Academy training to this issue exactly.
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
Article Source: http://EzineArticles.com/?expert=Vyacheslav_Vasilevich
What useful can one be taught by FOREX reviews, cooked up by analytical economists, who are incapable of teaching themselves to be FOREX successful?
FOREX economic indicators (released news statistics) are compiled the way required to be interpreted by analysts, who, by the end of the day, may explain any rates travel as the only naturally determined one.
Important objective economic indicators (GDP, Balance of payments, etc.) are leveled up with the subjective ones (University of Michigan, Chicago sentiment, etc.) which in no way may be checked up.
Economic statistics is frequently forged even at the supreme level.
Here is my attitude as a trader towards FOREX fundamental analysis and to its impact upon exchange rates dynamics.
At the outset, we’ll get to scrutinize the gambling done by FOREX analytical economists, who are striving to convince traders in exchange rates being tied up to some ersatz fundamental analysis data, viz. to economic indicators being released under daily streaming news.
We will also present technique background used by the banks’ Consortium to manipulate news and forecasts the way to vector the rates as any certain day requisite.
The earlier example dated April, 01, 2005 (when the trend has reversed against the logics of all the news released that day). The situation is an absolutely typical occurrence at FOREX, where in 50% cases rates are going DOWN the news vector while in 50% cases – AGAINST the news released. Any analysts’ venture to far-fetch the fundamental analysis to FOREX rate quotes has long caused me nothing but smile.
The FOREX analysts’ logics is as follows: as soon as the rates reverse against the news, next day they have the explanation that nothing unexpected has occurred with the market having already been anticipating the news, and these news have already been accounted for by traders in current quotes.
Or, else, the market (or traders or other) spotted in the news release not at all what it has read earlier in the streaming news. As a result, the rates by, normal logics, staged a sharp swivel to move in sort of a wrong direction.
But, my God, are traders really in need of the above analysts’ para-economic freaks on fundamental or other analysis, once THE RATES HAVE ALREADY MADE THEIR WAY in the said wrong direction?
And why, during uptrend, no analyst has recommended going short on a currency instead of going long in case actual news is superior to the estimate? I have never come across the case.
Analysts should have better derived a simple mathematical formula (hopefully they did have studied at universities) as to a FOREX pair average points travel prior and post critical news (National Bank percent rate hike, Balance of payments, etc.).
By virtue of this formula we, traders, could do some calculations to estimate whether either everything is already accounted for in the current rates or further 100-200 pts grow/decline is to be expected.
But there’s nothing of the kind!
And now, here’s my standpoint as a FOREX trader on why traders will never end up by being supplied with the above mathematical prognosis formula by analysts. I will also provide backgrounds of when pro-news and counter-news entries should be effected.
Fundamental Analysis CRITERIA BIASED INOBJECTIVE NATURE. Fundamental Analysis BEING ABANDONED IN FAVOR OF DAILY NEWS SUBSTITUTE.
1. All the Fundamental Analysis economic indicators are made a muddle of. See, for instance, 54 US economic indicators, ABC-arranged by analysts instead of being USD importance-rated http://www.forexite.com/forex_for_ beginners/us_economic_indicators.html
2. No difference is made between Fundamental Analysis, the state monetary policy and ersatz fundamental data-related current news (viz.: Chicago business activity index, Michigan University consumer sentiment index, National Managers’ Association business activity index, etc.). But, in what way is the Michigan University consumer sentiment index relevant to the US economy Fundamental Analysis? Is there any other name to be applied to this index besides the name of an ersatz Fundamental Analysis?
3. A portion of economic indicators organic to the above ersatz Fundamental Analysis evoke my personal uncertainty as regards their figures’ objective nature and as regards not being tailored to order of those supplying quotations to the FOREX market.
Let us go attentively once again look into these indices with the view to clarify their manipulation capability with no exposition danger.
- PHILADELPHIA FED INDEX constitutes the polling results of Philadelphia manufacturers as to their sentiment towards the current economic situation:
- Why Philadelphia, not California or Texas.
- May there be any difference in obtained figures depending upon the type of manufacturers being interrogated?
- Is there anyone in position to verify and confirm the above manufacturers’ polling results?
- Consumer price index (CPI), reflects consumer price level per a “basket” of goods and services. But the CPI may be properly built up, if prices differ supermarket to supermarket, from supermarket to conventional shop, from shop in the center and shop in an outskirt, from shop in a capital to shop in a province, from sell off period to new articles presentation period, etc.?
Is it imaginable, how figures can be manipulated in favor of those, requiring them so badly? Or is there anyone to convince me that it’s very hard to change 0.4% into 0.2% or 0.6% depending upon a customer’s demand at any given moment?
- Michigan consumer sentiment index constitutes the results of customers’ polling on current economic situation confidence. No comments, since it looks like interrogating no-one-knows whom on a no-one-knows subject.
- Consumer confidence. A doubtful attempt to measure consumers’ optimism.
-NAPM (National Association of Purchasing Managers) services index is representative of service managers polling results, purported at estimation of in-branch changes taking shape. Very often this index is dictated rather by psychological factors, than by actual state of affairs (???).
- Chicago PMI index. It is closely tracked due to being released shortly prior to NAPM. The index exerts strong authority over the market by prompting a real NAPM value to be released. Please, refer to NAPM above.
- Atlanta Fed index presents polling results of Atlanta industrials on current economic situation (???).
As understandable, the list of these ersatz Fundamental Analysis economic indicators may go on along with buildup of questions and doubts.
4. There’s a so-called factor of anonymous economists’ estimates in relation to economic indicators preceding values.
I wonder WHO are these anonymous economists, each time allegedly interviewed by Dow Jones on their expectations from news to be released the following calendar week? And WHY is THEIR opinion exactly presented to be the whole market’s anticipation of THAT data exactly, but not any other? Below are some sample potential manipulating the world traders’ opinion, frequently encountered by myself:
a frankly superior estimate leading to benign actual data being inferior to the prediction (I repeat, a no-one-knows whose prediction) and resulting in a sharp rates reversal by “disappointed” traders as later on indicated by analysts.
a frankly inferior estimate leading to malignant actual data being superior to the prediction, thus pushing the rates forward with no other market’s objective grounds.
TO SUM IT UP, leveled with objective economic indicators (GP, etc.) are ersatz Fundamental Analysis ones, manipulation by virtue whereof creates simulacrum of the rates being tied up to daily news and the state’s Fundamental Analysis. With prediction manipulation capability added hereto, it turns feasible to faultlessly project traders’ activities throughout the world. But is it accidental or not that worldwide traders’ training programs are as similar as 90-95% losers figures?
FUNDAMENTAL ANALYSIS CLASSICAL MACROECONOMIC INDICATORS
A true Fundamental Analysis, based on leading world economies comparative macroeconomic characteristics as well as on their currencies power/weakness, may be experienced not through indices of universities and various US managers’ associations, BUT through economic indicators, recognized by all the world leading economists. These are:
- GROSS DOMESTIC PRODUCT (GDP), the principle national economy condition reflector. According to economy development Keynesian model, GDP=C+ I + S + E – M, where: C is consumption, I is investments, S is state expenditures, E is exports, M is imports. GDP is expressed on terms of an index in relation to a previous period.
- STATE BUDGET, constituting a correlation between state’s incomes and expenditures.
- BALANCE OF PAYMENTS, correlating the country’s incoming and outgoing payments and falling into three major components: trade balance, balance of services and non-commercial payments (invisible transactions balance) and balance of capitals and creditors flow.
- UNEMPLOYMENT RATE in the country, being a 3D structure of:
frictional unemployment, related to higher remuneration job hunting or expectation after layoff (not a negative factor, since it leads to more rational labor resources allocation);
structural unemployment, emerging from labor demand decline in any industrial branch due, for instance, to technological development or change on consumer demand structure;
cyclic unemployment, arising during overall economic recessions.
- MONEY SUPPLY INDICES (M0, M1, M2, M3). M0 = cash circulation; M1 = M0 + cheque deposits; M2 = M1 + cheque less saving accounts + money market deposit accounts + minor deposits (less than USD100K) + money market mutual funds; M3 = M2 + large deposits (in excess of USD100K). These are practically no market influential.
- NON-FARM PAYROLLS.
- GOLD AND CURRENCY RESERVES, being a state’s gold and currency backup stored in central bank and in financial institutions, as well as state’s gold and currency assets with international creditors.
- NATIONAL DEBT, constituting state liabilities to physical persons, legal entities, foreign countries, international institutions and outstanding international law subjects.
- REFINANCING RATE, being percent rate utilized by the central bank in granting credits to commercial banks on a refinancing basis, etc.
MACROECONOMIC INDICATORS MANIPULATION ATTEMP AT FOREX.
Macroeconomic indicators are of objective nature, thus being “uncorrectable”, the way it may be done to various Chicago, Atlanta and Michigan indices.
That is why at FOREX we often come across surprising interpretations of the above objective indicators, recognized by the world’s leading economists.
1. Macroeconomic indicators are leveled with ersatz Fundamental Analysis ones, viz.: the University of Michigan one, as above indicated.
2. Absolutely in objective criteria are selected to estimate macroeconomic indicators. For instance, weekly number of jobless claims is released instead of its monthly fluctuation dynamics analysis per its three aspects (frictional, cyclic and structural). This data s released on Thursdays, 08:30 EST, New-York with a disclaimer that “the figures are not always reflective of the actual situation”. The data is under frequent perversion due to short-term factors such, as federal or local holidays. The question is WHAT IS IT ALL FOR?
3. The macroeconomic indicators role is being undermined in every manner. See below:
State budget exerts but an insignificant authority over the market (?!). Curious to know WHY? Is it that the UMich index is more important in understanding the US economy prospects and its perspective currency rating?
http://www.forexite.com/forex_for_beginners/us_economic_indicators.html
Balance of payments is of limited influence on the market (??).
http://www.forexite.com/forex_for_beginners/us_economic_indicators.html
4. Totally different indicators are being quoted when analyzing the leading economies’. See:
the USA: M1, M2, M3 money supply, whereas M3 only for Germany with no indicator as such for the UK; the UK: PPI output, PPI input with no indicator as such for other countries.
RELATION BETWEEN Fundamental Analysis MACROECONOMIC INDICATORS AND FX RATES
Certainly, the relation between Fundamental Analysis and current FOREX rates does exist, however it is greater in depth and mediation, than presented to traders by the majority of analysts, starting from dealers’ basic training.
In my opinion, this DIRECT relation between Fundamental Analysis and FOREX trending finds manifestation on W1 and MN charts only.
Those, supplying us with FOREX quotes, may be “playing” and “fooling” traders within H1 and even H4. But changing trend at W1 and MN timeframes in favor of the USD and establishing the EUR price, say, cheaper than that of the USD in 2005 means going AGAINST depth fundamental data. Those will never be off to commit sort of a thing.
A currency price and that level of fundamental data are permanently coincident. This is not at all the ersatz Fundamental Analysis, whereto the Consortium has schooled the majority of traders (not the University of Michigan index, not the Chicago Managers Association index, not the last month Consumer Confidence index (?!), etc.), and by virtue whereof the aforesaid traders majority have got completely confused in a seemingly elementary issue of entry in favor of the news and against the news.
Hence, below is the USA and Europe macroeconomic indicator related PRACTICAL CONCLUSION for traders: data as of early summer, 2005 are definitely indicative of the incapacity of the long-term USD downtrend change for its uptrend (W1 and MN charts) within the year relative to the EUR, the GBP and outstanding “allies” (See chapter on “Which FOREX indicator is the most impartial and accurate. Ally and adversary currencies”).
Thus, following each short- or medium-term EUR’s recess, its new growth will be witnessed with earlier historic peaks potential breakthrough. The contrary option of the EUR being cheaper than the USD is a NO-NO, exactly due to fundamental macroeconomic indicators, where under European economies enjoy faster development than the USA.
RELATION BETWEEN ERSATZ Fundamental Analysis AND FOREX QUOTES.
Any ersatz Fundamental Analysis indicator data release (UMich, Chicago indices, etc.) is but the GROUND to urge currencies up-down reciprocation, as a function of tactical objectives of those supplying FOREX quotes.
A PRACTIAL CONCLUSION for traders: I claim no relation between ersatz Fundamental Analysis and FOREX quotes from the intraday trading standpoint.
Upon the above news the banks Consortium may drive the rates in any direction, whereas FOREX analytical economists will snatch on You proving and explaining that there is no unexpected occurrence and that the market with proper advance account has been long anticipating the news released, etc., etc, see aforesaid.
That’s the reason for no analyst to venture to recommend entry against the news prior to its release. NO ONE knows in advance where the rates will travel under the Consortium’s will after the news.
This is the level of technical analysis, not that of Fundamental Analysis.
Being a trader, I observe 3 rules when jobbing on news:
exit all positions prior to the news release; if not – then place pending orders behind resistance and support levels to be a stop-loss “safety cushion” as per B. Williams.
don’t enter upon the first candle after the news release;
enter immediately after the Consortium has definitely indicated the way it interprets the news released (see “Entry and exit manual” on entries and exits under the news released).
IN CONFIRMATION OF MY CONCLUSION ON POTENTIAL CURRENT NEWS AND OTHER STATISTIC DATA FORGERY, I refer to “Dawn of dollar empire and end of “Pax Americana”” by A.B. Kobyakov and M.L. Khazin, (“Veche” publishing house, 2003, 368 pages), see on http://paxamericana.narod.ru/book/paxamericana.zip.
The authors thereof have arrived at conclusions still more aggravating for traders and quoted facts on STATISTICAL DATA FORGERY AT THE LEVEL OF THE USA STATE STATISTICS, see CHAPTER V. STATISTICS AT CURTESY OF ECONOMICS:
“The earlier published data summary maintained, that during seven years from 1995 to 2001 inclusive, the USA boasted positive balance of payments of USD203.2 BN, while the revised data uncovered negative balance of payments of USD89.8 BN (chart 24) within that period. With the account to Q1 2002 the above deficit amounted to USD100 BN already.
EVERYONE IS FREE TO READ IT IN GREATER DETAIL AND TO DRAW UP ONE’S OWN DEDUCTIONS!
A serious Russian “Novaya Gazeta” newspaper (08.09-11.09.2005, in “Writings on the water”, see p. 15) has reiterated on another stock market vivid instance, where for the sake to meet some national (or, probably, SOMEBODY’S) interest, the US governmental circles and information agencies have set on a worldwide advertising of a “greatest modern discovery of nanotechnology: a single-molecule transistor”.
The newspaper quotes: “Prospects were breath-taking. The “fourth wave” subject attained unusual fashion and attraction for investments. Nanotechnologies fell under the US government strictest attention being the issue of strategic importance. Hardly imaginable was the fact that all the sensation would end up in a classic “panama” or a shady enterprise similar to our default. Scientific companies share prices skyrocketed off-scale, whereas 30-yo Jan Hendrik Shone, the main publications author has been thought to be next year’s Noble Prize nominee. It all would have been sliding on smoothly, unless the results of over 100 Shone’s articles turned out to have not obtained confirmation. Tampering has been proved as regards three key reports on single-molecule transistor.
As a result Shone faced being fired along with sharp decline in scientific companies share rates. The companies have been stung for USD100BN approximately, the amount being suspiciously close to the Iraqi war (started only 3 months later) US government expenditures.
An infinite number of similar sample situations may be drawn, with statistics turning into a falsifier.
Hence, the question is natural: what’s the way of a trader using Fundamental Analysis statistics to build up FOREX strategies, provided that at least part of data is forged to someone’s benefit?
I don’t hold it reasonable to go deeper into the issue. A FOREX trader’s gains may not be facilitated by this issue’s deep study.
To get a comprehension of FOREX currencies logics, the simple knowledge is indispensable of WHO, HOW and BY WHAT REASON supplies FOREX quoted to traders. By far we have but only answered WHO are those Internet users to furnish quotes to traders.
Identically, no use sinking into the “BY WHAT REASON” the quotes are supplied at FOREX. Please, attempt yourself to answer by virtue of a counter-question: if You (not the Consortium) have invented a financial result-oriented game with clients – WHO IS SUPPOSED TO BE THE WINNER (the game organizer or clients)?
Hopefully, I have beaten off some green traders’ lust for instant gains at FOREX. You are facing a professionals market and becoming a profi yourself is the only way to earn money at this market.
The underlying chapters are concentrative of the attempt to elucidate the core question: HOW are the FOREX quotes presented, to enable the extra-exchange FOREX market traders to attain steady gains.
Below I will purportedly and repeatedly resort to examples from books by Viktor Suvorov (“Ice-breaker” et al.). Our target at FOREX is a twin sister of V. Suvorov’s one in history: to use official sources (i.e. absolutely verifiable materials) in legal understanding of what is camouflaged by the world’s richest market half-truth and falsehood in Fundamental Analysis and Technical Analysis methods, in published FOREX literature, in websites analytics and predictions, in actions of dealers making millions USD by means of their client traders’ accounts, etc.
Now, please, find below an intermediate conclusion being the starting point in understanding of currencies quote logics as well as in pinpointing of CORRECT and ERRONEOUS method of operation at FOREX proposed by Bill Williams and other scholars:
A trader is to be aware of one single thing – as different from stock markets, FOREX traders are not opposing each other, but they fight against the almighty FOREX Game Organizer – the world banks Consortium being capable of swiveling any national currency to any direction and at any moment by way of using numerous economic indicators, news releases, whose authenticity is not doomed to ever be verified by anyone.
Thus, how is one to realize, at a trend beginning, but not by its end, WHAT FOR and BY HOW MANY POINTS the Consortium is pushing currency rates?
Bearing the above in mind we will dedicate the following book chapters and the Masterforex-V Academy training to this issue exactly.
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org
Article Source: http://EzineArticles.com/?expert=Vyacheslav_Vasilevich
Thursday, August 6, 2009
Simulated Forex Trading - What Simulated Forex Trading Is & Why You Need It
Simulated Forex trading is the best opportunity that beginner Forex traders have to practice their Forex skills. This article will go into detail discussing what simulated Forex trading is and why beginners must try simulated Forex trading before they risk their own money. Keep reading to get access to a $100,000.00 simulated Forex trading account of your own!
Simulated Forex trading is practicing Forex trading without risking any of your own money. This is an ideal way for beginner Forex traders to perfect their Forex knowledge before taking the next step of trading on Forex with their own money.
Simulated Forex trading allows the trader to make trades just like you would in a real Forex market with your own money.
With simulated forex trading the beginner Forex trader gets the full functionality of an online Forex broker at zero risk to the Forex trader.
Simulated Forex trading involves the same real charts and live price data as would occur if trading live. Simulated Forex trading will give beginner Forex traders, or traders needing to improve their self-confidence, the same fundamental Forex experience as if you were in the live "real" Forex market by allowing the Forex trader to gat the same live Forex streaming data used by successful, professional Forex traders.
Simulated Forex trading allows the Forex trader to keep their emotions at bay. While you won't feel your pulse racing as it would if you were risking tens of thousands of dollars, it gives Forex traders a fantastic starting ground to practice their Forex fundamentals before taking it into the real world and putting their hard-earned money at risk.
Simulated Forex trading allows beginner Forex traders to learn the fundamentals of Forex money management and to perfect their Forex technical analysis skills, which are one of the most critical fundamentals of every Forex trader.
I would strongly discourage any beginner Forex trader starting out with their own money. To do so is virtual financial suicide. I suggest you start simulated Forex trading immediately. Make sure that the simulated Forex trading account has access to a reasonable amount of money to play trade with. At least $75,000 is the ideal. Keep reading to get access to a $100,000.00 simulated Forex trading account.
Copyright 2007. Are you ready to get the best education in Forex trading? “Fast Education For Fast Forex Profits” is what this best Forex trading system course is all about. Learn how to start making money trading the Forex market within 30 days. Study, practice, trade – get a 30 day FREE trial to practice Forex trading with your own $100,000.00 Forex account so you never have to risk any of your own money! Start your beginner education in Forex trading at http://www.Best-Forex-Trading-System-Course.com
Article Source: http://EzineArticles.com/?expert=Karin_I_Manning
Simulated Forex trading is practicing Forex trading without risking any of your own money. This is an ideal way for beginner Forex traders to perfect their Forex knowledge before taking the next step of trading on Forex with their own money.
Simulated Forex trading allows the trader to make trades just like you would in a real Forex market with your own money.
With simulated forex trading the beginner Forex trader gets the full functionality of an online Forex broker at zero risk to the Forex trader.
Simulated Forex trading involves the same real charts and live price data as would occur if trading live. Simulated Forex trading will give beginner Forex traders, or traders needing to improve their self-confidence, the same fundamental Forex experience as if you were in the live "real" Forex market by allowing the Forex trader to gat the same live Forex streaming data used by successful, professional Forex traders.
Simulated Forex trading allows the Forex trader to keep their emotions at bay. While you won't feel your pulse racing as it would if you were risking tens of thousands of dollars, it gives Forex traders a fantastic starting ground to practice their Forex fundamentals before taking it into the real world and putting their hard-earned money at risk.
Simulated Forex trading allows beginner Forex traders to learn the fundamentals of Forex money management and to perfect their Forex technical analysis skills, which are one of the most critical fundamentals of every Forex trader.
I would strongly discourage any beginner Forex trader starting out with their own money. To do so is virtual financial suicide. I suggest you start simulated Forex trading immediately. Make sure that the simulated Forex trading account has access to a reasonable amount of money to play trade with. At least $75,000 is the ideal. Keep reading to get access to a $100,000.00 simulated Forex trading account.
Copyright 2007. Are you ready to get the best education in Forex trading? “Fast Education For Fast Forex Profits” is what this best Forex trading system course is all about. Learn how to start making money trading the Forex market within 30 days. Study, practice, trade – get a 30 day FREE trial to practice Forex trading with your own $100,000.00 Forex account so you never have to risk any of your own money! Start your beginner education in Forex trading at http://www.Best-Forex-Trading-System-Course.com
Article Source: http://EzineArticles.com/?expert=Karin_I_Manning
Wednesday, August 5, 2009
A Beginner Forex Trading Education - How to Get the Best Beginner Education In Forex Trading
How to get the best beginner education in Forex is a question Forex beginners consistently ask. Forex trading can be an extremely daunting task. This article will discuss how to get the best beginner education in Forex trading including special Forex tips used by the professionals plus how you the best beginner education in Forex Trading could be learnt in the comfort and privacy of your own home. Keep reading to get access to a Forex demo account of $100,000.00.
Beginner Forex traders frequently become confused and often disheartened when they get started in Forex currency trading. However, there are some very simple Forex tips that will help you on your path to becoming a successful Forex trader.
One of the most important Forex decisions you will ever make is choosing the right Forex broker. There is a lot of competition between Forex brokers and their service is as varied as are their prices. Here are a few tips to follow when deciding on which Forex broker to use. It is a must that the Forex broker that you choose is registered with the Commodity Futures Trading Commission. If they aren't, and make excuses for why they aren't, look elsewhere. There is absolutely no excuse for a Forex broker not being registered with the CFTC. It is important to choose a Forex broker that belongs to a reputable company that has been established in the field for a long period of time. If they have some sort of ties to a financial institution like a bank that is even more preferable.
Another important part of your beginner education in Forex Trading is having access to the best and most up to date research tools with real time quotes, charts and reports. Be sure to choose a Forex broker that makes it easy as possible for you to successfully trade as a Forex broker, and also has access to the best and most up to date Forex information at his fingertips. You should also try and choose a Forex broker that has a reasonable spread which is the difference between a Forex buying price and selling price.
It goes without saying that a http://www.Best-Forex-Trading-System-Course.com> beginner education in Forex trading can be costly. Your beginner education in Forex trading is not something that you should skimp on. There are many other ways of cutting costs as a Forex trader but your beginner education in Forex trading will create a solid foundation for you and your Forex trading business. As with many things, you get what you pay for. While there are some Forex trading courses that cost thousands of dollars, it's possible, with a little research, to find some fantastic, reputable Forex trading system courses for just a few hundreds of dollars. I suggest that you start with that introduction to beginner education in Forex trading while you are getting your feet wet. Of course, your beginner education in Forex trading may be tax deductible so be sure to check that out with your accountant and keep all your receipts.
A beginner education in Forex trading should not put your money at risk. The best beginner education in Forex trading would simple involve study, practice, trading. It's daunting starting out as a beginner Forex trader so it's best to start out with a demo Forex account. A demo Forex account has a pretend balance that permits the beginner Forex trader practicing the methods learnt and perfecting them, and building your Forex trading confidence, without taking any risks with your own money. This is the ultimate beginner education in Forex trading. You will have plenty of time to gain the Forex experience and confidence you need to make informed decisions and learning how to make lightning-fast Forex trades when you go out into the Forex market on your own.
Copyright 2007. Are you ready to get the best education in Forex trading? “Fast Education For Fast Forex Profits” is what this best Forex trading system course is all about. Learn how to start making money trading the Forex market within 30 days. Study, practice, trade – get a 30 day FREE trial to practice Forex trading with your own $100,000.00 Forex account so you never have to risk any of your own money! Start your beginner education in Forex trading at http://www.Best-Forex-Trading-System-Course.com
Article Source: http://EzineArticles.com/?expert=Karin_I_Manning
Beginner Forex traders frequently become confused and often disheartened when they get started in Forex currency trading. However, there are some very simple Forex tips that will help you on your path to becoming a successful Forex trader.
One of the most important Forex decisions you will ever make is choosing the right Forex broker. There is a lot of competition between Forex brokers and their service is as varied as are their prices. Here are a few tips to follow when deciding on which Forex broker to use. It is a must that the Forex broker that you choose is registered with the Commodity Futures Trading Commission. If they aren't, and make excuses for why they aren't, look elsewhere. There is absolutely no excuse for a Forex broker not being registered with the CFTC. It is important to choose a Forex broker that belongs to a reputable company that has been established in the field for a long period of time. If they have some sort of ties to a financial institution like a bank that is even more preferable.
Another important part of your beginner education in Forex Trading is having access to the best and most up to date research tools with real time quotes, charts and reports. Be sure to choose a Forex broker that makes it easy as possible for you to successfully trade as a Forex broker, and also has access to the best and most up to date Forex information at his fingertips. You should also try and choose a Forex broker that has a reasonable spread which is the difference between a Forex buying price and selling price.
It goes without saying that a http://www.Best-Forex-Trading-System-Course.com> beginner education in Forex trading can be costly. Your beginner education in Forex trading is not something that you should skimp on. There are many other ways of cutting costs as a Forex trader but your beginner education in Forex trading will create a solid foundation for you and your Forex trading business. As with many things, you get what you pay for. While there are some Forex trading courses that cost thousands of dollars, it's possible, with a little research, to find some fantastic, reputable Forex trading system courses for just a few hundreds of dollars. I suggest that you start with that introduction to beginner education in Forex trading while you are getting your feet wet. Of course, your beginner education in Forex trading may be tax deductible so be sure to check that out with your accountant and keep all your receipts.
A beginner education in Forex trading should not put your money at risk. The best beginner education in Forex trading would simple involve study, practice, trading. It's daunting starting out as a beginner Forex trader so it's best to start out with a demo Forex account. A demo Forex account has a pretend balance that permits the beginner Forex trader practicing the methods learnt and perfecting them, and building your Forex trading confidence, without taking any risks with your own money. This is the ultimate beginner education in Forex trading. You will have plenty of time to gain the Forex experience and confidence you need to make informed decisions and learning how to make lightning-fast Forex trades when you go out into the Forex market on your own.
Copyright 2007. Are you ready to get the best education in Forex trading? “Fast Education For Fast Forex Profits” is what this best Forex trading system course is all about. Learn how to start making money trading the Forex market within 30 days. Study, practice, trade – get a 30 day FREE trial to practice Forex trading with your own $100,000.00 Forex account so you never have to risk any of your own money! Start your beginner education in Forex trading at http://www.Best-Forex-Trading-System-Course.com
Article Source: http://EzineArticles.com/?expert=Karin_I_Manning
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