ADVANCE FOREX EDUCATION PART EIGHT: BELONGING TO THE 2% LEAGUE OF WISE FOREX TRADERS:

THE GREAT COUNTDOWN BEGINS : 7 LIVE TRADES WITH 6 WINS:

 ADVANCE FOREX EDUCATION PART EIGHT:

 

BELONGING TO THE 2% LEAGUE OF WISE FOREX TRADERS: 

The league of 2% wise forex traders are the real professional traders. A lot of forex

traders are just pretenders, who claim to belong to this unique group for their dexterity

in the acts of forex trading. All they do and do very well, centers around forex business.

Unlike the extra 3% forex traders who are hoping to be fully integrated into the fold.

It is even better to aspire to belong to this group from point zero, instead of pretending to

be there already. The irony is that a lot of those in this fringe 3% of forex traders, are so 

boastful and arrogant, and you will think they are true professional forex traders. They

are just "warming" the bench and due to their limited knowledge of the forex markets, they 

capitalize on this little knowledge of theirs to dupe the unsuspecting forex new guys.

 

I do not want to belong to the extra 3% forex traders, who are neither here nor there.

Just because they trade to break even or make little profits, they arrogate to themselves,

memberships of the league of 2% wise forex traders. They are not members at all. You must 

resolve today to join this league by a dint of hard work. This is the best time to do so with a number of reasons. Chief of which is to gain financial freedom and have control over your finances. 

Membership of the league of 2% wise forex traders is not measured by the growth rate

of your forex trading accounts. Having a $1000 account  and growing it into a $10,000

account does not make you a professional forex trader. You are still on the side lines.

Professionalism is all about your ability to trade forex to pay all your bills. If you still

depend on Mortgage and Vehicle Loans for your housing and mobility needs respectively,

it means you are not yet a professional forex trader. If you are a student but cannot pay 

your school fees in a top notch institution of learning anywhere in the world, you are not

yet a professional forex trader. If you a parent but cannot afford to send your child/children

to one of the best schools anywhere in the world, you are not yet a professional forex trader.

If you are a family person, but cannot pay the bills of your siblings and aged parents, you

are not yet a professional forex trader. If you are unable to take your entire family on an 

annual vacation abroad, not a local resort in your neighborhood, because of expensive air fares

and accommodation issues, you are not yet a professional forex trader. If you work in between 

forex trading hours, for extra income, you are not yet a professional forex trader.

If you sell forex trading products, forex education tips, forex trading signals, robots, Expert

Advisers, EAs, or any other material for that matter, for the purpose of earning extra income

to make both ends meet, you are not yet a professional forex trader. If you run a LIVE TRADE ROOM for a fee to augment your normal and insufficient income from forex trading, you are not yet a professional forex trader. You  need to accept this fact, the earlier you do this, the better. So that you will leave the world of illusion you have been living in, for good. Just continue to learn the ropes, until you become a true professional forex trader. When you stop "preaching" your ego in other to extort money from others who are aspiring to become professional forex trafers, you will be on the right pedestal to become a true professional forex trader.

In a nutshell, if you do not guarantee yourself, financial freedom and take care of all your

financial needs, you are not yet a professional forex trader. When we talk of the forex markets, we mean US$5 Trillion of daily trading volume. It is not a child'splay. For you to claim to be a professional forex trader in this kind of market environment and yet you cannot take care of all your financial needs, is the greatest disservice you are doing to yourself. Stop pretending and continue to learn the acts of forex trading, and one day, you will get there.

You must have that cutting edge ability to trade for a living, not just normal living, but quality

livelihood.  It is only sincerity of purpose that will get you into the league of 2% wise forex traders.

***** The countless number of NO TRADES are enough to protect our accounts *****

2015: MY NEW YEAR FOREX RESOLUTION:

THE GREAT COUNTDOWN BEGINS : 7 LIVE TRADES WITH 6 WINS:

 

2015: MY NEW YEAR FOREX RESOLUTION:

My new year resolution is quite simple:To upgrade myself firmly in the 

"LEAGUE OF 2% WISE MEN AND WOMEN" who are true professional

forex traders. 

 

A resolution to adhere strictly to the provisions of my trading

strategy 100%. I prefer to have 500 NO TRADE CALLS and 25 GOOD TRADES

in the whole of 2015 to having 490 NO TRADE CALLS and 25 GOOD TRADES

with 10 BAD ONES, because I strongly believe that comprehensive news trading is

the only way forward to becoming professional forex traders.

This brings me to the next advance education series part eight:
BELONGING TO THE LEAGUE OF 2% WISE FOREX TRADERS:

Watch out for this in the next hour.

***** The countless number of NO TRADES are enough to protect our accounts *****

ADVANCE FOREX EDUCATION: PART SEVEN: WHY LOSERS ARE MORE DESPERATE THAN WINNERS:

 THE GREAT COUNTDOWN BEGINS: 7 LIVE TRADES WITH 6 WINS!


ADVANCE FOREX EDUCATION: PART SEVEN:

WHY LOSERS ARE MORE DESPERATE THAN WINNERS:

There is no need to over emphasize the fact that in forex trading, majority is always wrong. This is why only 2% of forex traders are now successful. Studies have shown that losers are more desperate to trade than the few winners due to the fact that the losers always try to look for trades to recoup their losses, and in an attempt to look for trades at all cost, they end up losing again and again. While on the other hand, the few winners are always meticulous and prudent in executing trades, so as to protect what they've won / gained.

In view of the foregoing therefore, it is quite clear why winners are always winners and losers always losers. If it were possible for forex trading to be traded around the clock 24/7, nearly 90% of all losers will appreciate that, because they believe trading everyday of the week or even every hour will enable them recoup their losses on time, but winners on the other hand, will like to take a vacation after a successful trading week, so as to relax over the weekend where there's no trading since forex trading is 24/5 and relax and plan for the upcoming week.

Since forex trading is highly leveraged, it is on record that the more you lose, the more you increase leverage in the expectation that your next trade could be successful so as to increase your chance of recovering your account deficit. But what of winners? They are always in a position to protect their accounts and become weary of high leverage because they clearly understand what it means to generate profit on a continuous basis, even if it means trading just once a month.

But have you asked yourself this basic question? Why is it only in forex trading the majority is always wrong? Why do the majority do the right things at the wrong time? Or the wrong things at the right time or simply the wrong things at the wrong time? The answer basically is desperation, desperation and desperation!!! What is the solution? Let us proffer a solution.

It is by trying to avoid desperation at all cost. If you have a losing trade, don't become desperate to recover as quickly as possible. Have it in mind that when you are desperate to recover on time, it is a panacea for more losses. You just need to remain calm, plan your trading and say no to more losses and try to trade good. Trading good means when you are not desperate to trade. Any chance you have to trade is an opportunity to make money because there's at least a 70% chance of the trade you have to work/succeed. Before you take a trade, make sure that trade has at least 70% chance of working well, so that you don't have to be working and trading every minute and every hour of the week, because forex trading is not gambling. It is empirically proven, that prices move in the market as a result of fundamentals. So, why should you trade when these fundamentals are absent or insufficient to drive the markets? A word is enough for the wise, in spite of the fact that in forex trading, only an insignificant few are wise. BECOME ONE OF THE FEW TODAY!




***** The countless number of posted NO TRADES are always there to save us against
potential losses *****

ADVANCE FOREX EDUCATION: PART SIX: GOOD TRADES ARE LESS THAN 10% OF BAD TRADES:

ADVANCE FOREX EDUCATION: PART SIX: GOOD TRADES ARE LESS THAN 10% OF BAD TRADES:

 

Have you ever wondered why 98% of forex traders are losers? One of the reasons is that forex business is so designed in such a way that no matter the method or strategy you deploy to trade, there are certain “obstacles” you must encounter along the way. If you are a follower of technical analysis, your predicaments will be much more, because, when you are experimenting with the numerous technical indicators available, it would appear you have gotten the secrets of forex trading at your finger tips. It is when you now deploy such technical analysis to trading real time, that you will be shocked at its shortcomings. Your mindset will now shift to more advanced technical indicators, to be able to, either predict price action or a trend or a reversal trend etc. But you will quickly forget so soon the fact that, others before you had used the same advanced technical analysis and still formed buck of the losing lot.

 

Fundamental analysis is on the same pedestal, in the sense that others before us have used the same methods that we are now using, should tell us something, and  that is, we are still going to face the same challenges those before us faced, that is, in spite of the “effectiveness” of fundamentals to dictate the “price action”, a lot of them could not break even. But the rate of fundamental analysis to predict price action correctly is 90% as against that of technical analysis which is less than 10%. The difference is that, predicting price action does not indicate the sustainability of such price action. Knowing the direction of the currency market alone is not an indication of a good trade all the time, because, the swift movement in that direction could have a swift reversal of price action in the opposite direction.

 

Nothing is guaranteed as far as forex trading is concerned, it is purely and irrevocably speculative in nature. If the so called signal providers, who claim to make 1000 pips in a month, (some even claim to make such in a week), are sincere, why should the number of forex traders on the losing side be so much? My years of research showed me clearly that such people cannot even trade their live accounts successfully. They look for easy means of earning revenue by scamming unsuspecting forex new guys. Some will even print fake records of their “live trading accounts” to convince you, all is a lie, cleverly scripted to deceive you.

Rogues are quite clever and they are always steps ahead of their victims. Some will say, you will pay $1 per pip, which pip? They will dish out some signals based on guess work, because they are aware there must be price action and they could be lucky at times to meet part of the price action. What stops them from trading their accounts to make money, instead of waiting for your subscriptions to feed and take care of their families? Because of my knowledge, conviction and confidence, I trade my live accounts and there is no need to sell anything to anybody for whatever reasons.

 

Since forex trading is designed in such a way to have as many as 95% of bad trades, the onus is on us to strategize in order to be able to identify most of the bad trades and avoid them, so as to capitalize on the few good ones available. This is the only way forex trading can be lucrative.

 

Lets us assume you have a $1000 account and a leverage of 500 : 1. It means you can confidently trade one standard lot. If in each lot you trade you are risking a 10 pip-stop loss, it means, each trade you lose, it is minus $100. But each trade you win is plus $100 assuming too you get only 10 pips profit. The only way you can blow up this account is by losing seven trades in a roll which will leave you with a balance of $300 in your account. With the $300 balance in your account, you can still trade a standard lot in several currency pairs. If there is a change in situation and instead of having seven losing trades in a roll, and you have just one good trade in a month with 50 pips, that translates into a win of $500. Even if you had lost $700 in seven bad trades, with just one good trade, your account will be revived back to life with $800 balance. Can you imagine a situation where you control your destiny by being meticulous on the strategy you use in trading?

If you have three good trades and a bad one in a month, what will happen to the size of your account? Your guess is as good as mine.

 

The way you handle your strategy will determine how you grow your account or otherwise. Since good trades are less than 10% of bad ones, you can effectively change that to: "The number of BAD trades is less than 10% of GOOD ones in my trading account". If you can do this, I can imagine the rate at which your trading account will grow. There is nowhere in the world today where you can enjoy up to 5% interest on your deposit annually, except of course some third world countries with little or no guarantee of payment at maturity. Do not let anyone deceive you about joining the forex community to make quick money. Whose money do you want to take? The forex brokers’? You are joking. They have numerous staff who are paid to post technical analysis to confuse you, like this: "that since GBPUSD has reached a certain level, the trend will continue". This is done to make you jump in with your order and before you know it, your stop loss is triggered.

 

They know that the number of good trades is less than 10 % of bad ones. If care is not taken, very soon, the number of forex brokers will be more than forex traders, not a joke. You need to see the rate of proliferation of forex brokers, especially, the Dealing-Desk ones, it is simply frightening. Before any of your trade, do not forget this: GOOD TRADES ARE LESS THAN 10% OF BAD ONES.

ADVANCE FOREX EDUCATION: PART FIVE: EXTERNAL FACTORS CAN RUIN YOUR STRATEGY:

ADVANCE FOREX EDUCATION: PART FIVE: EXTERNAL FACTORS CAN RUIN YOUR STRATEGY:

You must be conscious of your environment and the things that can likely distract you during trading time. The human factor is the most challenging of all the problems associated with forex trading. Make sure that those who have nothing to do with your trading strategy are not around you when you are trading. You will be shocked when somebody you are even trying to teach about forex trading and your strategy, will be telling you what to do, when to close the trade or when to take profit. Do not allow anyone to put you under any pressure, no matter how close you are to each other.

FOREX BROKERS CAN KILL YOUR AMBITION:

Choosing the right forex broker is as important as developing your strategy. Studies have shown that no matter how good your strategy is, a bad forex broker could ruin you and the strategy. Before you appreciate your strategy and its viability, you must have a good forex broker with the right trading platform to test run it. Whatever the strategy is, using a bad forex broker, will jeopardize your chance of a successful test run. Check the forex broker reviews on the forex peace army website and consider what those who had used them have to say.

You will then be in a position to choose a good one for yourself. Do not allow sentiment to form the basis of your choice, otherwise, you will make a mistake in your choice. Do not say because the forex platform is compatible with your smart phone or PC, that it is a good forex broker. It goes beyond those kinds of sentiments. I can confidently say the forexpeacearmy website is the best in the whole world when it comes to providing free and qualitative forex services. You will find the forex broker reviews very educative and inspiring.

THE CALENDAR OF EVENTS CAN AFFECT YOUR STRATEGY:

What essentially drive market prices is the element of surprise and other factors and to position yourself for a good report is to make sure you use a calendar of events that is accurate and straight to the point. This is where CASHBACKFOREX calendar of events comes in handy. It is not only accurate, it has been proven to be the best in the world, in terms of the expectations and revisions. For a successful news trading business, you need to know the exact market expectations or consensus figures, to be able to assess the level of impact likely to be generated by the released economic report. My greatest surprise was when I subscribed to a News Wire Service, I discovered that the figures as contained in CASHBACKFOREX calendar of economic events are exactly the figures the News Wires Services are using and it is what the markets generally react to. So, having a good calendar of events that is accurate and precise, is as important as your strategy itself, because doing the wrong thing can "finish" your hard labour in a few seconds.

Imagine a situation where the market expectation of the US GDP is different from one calendar to the other, what do you do? Do you abandon your trading strategy? You must full back on the most accurate and base your trading decisions on that, which is always correct and straight forward.

THE CURRENCY PAIRS YOU SELECT FOR TRADING CAN FAIL YOU:

Have you thought of the currency pairs you select for trading? Using the default currency pairs, does not guarantee you a good trade. So many factors can affect them, revisions and the mood of the market is one of such factors. I have dealt with most of these things in the previous parts of advance forex education.

Trading the UK GDP for example, does not necessarily mean the cable, GBPUSD, will be the most appropriate currency pair to use for the trade. Just the same way, the USDJPY may not guarantee a good trade on Japanese reports. These are the factors that make forex trading so challenging and rigorous. But when you are able to master all the techniques, trading becomes quite pleasurable.

 

YOUR INTERNET SERVICE PROVIDER (ISP)CAN MAKE TRADING A NIGHTMARE

The internet service provider cam make trading very stressful and frustrating, especially in developing economies as mine. I have used all the available internet service providers in my country in an attempt to find a "safe haven" all to no avail. The two I am currently managing are presumably the best in the country and their services still fluctuate. At times, I had to close my trading platform to in order to be able to post my live trades, because, to open three pages at a time is like forcing a horse to drink water. Make sure your internet connection is quite okay, because it can determine the way your order is executed and how fast.

THE HUMAN ANGLE IS ALSO A FACTOR TO WATCH OUT FOR:

 

One thing you should avoid at all cost, is by allowing a second opinion to judge the way you trade or apply your strategy.

Some time last year, that is 2013, I was showing my personal assistant and one other staff, what a real forex trading environment looks like, the live trading platform and the lot size, with the position I was holding, when suddenly they were “shouting” close the trade now and take profit, and this was because the price action was coming against me. They do not understand what forex trading is all about. Price action in forex trading is not a one-way traffic that you can just follow. There must be consolidations, pullbacks and retracements. If you are not careful, your attention will be shifted to other things in focus at the moment, because you have lost your own focus. It is advisable to shut out every member of your household, especially those who are likely to disturb or influence your trading decisions.

HUMAN FACTORS CAN BE AN ADVANTAGE TO DRIVE A PROCESS:

 

The same human factor that may distract you during trading can be useful in driving the process of taking advantage of the outcome of your strategy. Whether the aim is for personal or public use.

Whether the service you render is free or not, you need human factor to drive the process. Just learn from these two case scenarios:

I joined the forexpeacearmy forum in November, 2007 and went away later for "SABBATICAL" some time in 2008, to enable me carry out my research work on forex trading. I received several emails from the administrator to come back to the forum prior to my rejoining the forum in October, 23rd of 2014. In spite of the fact that they , forexpeacearmy render free forex services, they recognize the fact that they still need human factor to drive the entire process. They know whatever little contributions I give will impact on some people positively.

The same scenario played itself out, when the board and management of CASHBACKFOREX decided to merge or fuse FOREXRAZOR into CASHBACKFOREX, all the forum threads created after September, 2014, were "lost" so to say in their data base, and mine happens to fall into this category, because it was created in October, 24th or so, but to my greatest surprise, their site administrator/ manager, one Mr Denis sent me an email, telling me about the merger and the problems they were encountering in restoring my forum thread and probably some others. He went further to appeal to me for patience because the problem would take about three days to fix. He went further again to suggest the transfer of my thread to the General Trading Discussion and wanted to know if I would still like to continue my posts. I was shocked when he sent me an email the following day, intimating me of the readiness of my forum thread instead of waiting for three days and to wish me more viewership. I was not too surprised though because, whatever the service you render, there are a few people who know you need the human factor to drive the process. Of all the paid charting services I have seen and used in the past, they are not up to 10% of the quality and material content available in the free ones provided by CASHBACKFOREX, especially the economic data impact analyzer. It is a revolutionary tool for forex traders and I am quite happy I told the site manager how I benefited from its use in the later stage of my research work. These are some of the ways external factors can be useful.

Do not seek any opinions about your strategy, unless you are test running it. Nobody will understand your strategy more than yourself and so, be wary of any interference. Let me share this with you also:

I decided to introduce my children, four of them to forex trading just last week,including my daughter inlaw and son inlaw, precisely on Sunday 14^th December, 2014. I made sure my posts were sent to them through emails so that they could trade my live trade calls on demo platforms, as a way of mastering the act of placing orders. Same to my wife. Although three of them are in the medical profession, only my second daughter is in mass communication, I told them to learn forex trading in order to acquire financial freedoms. But my instinct is telling me that my son inlaw, who is business inclined and my daughter inlaw, who is a lawyer, are better placed to master the strategy than the rest. The life in Florida, US will affect my second daughter's learning process if care is not taken. They can afford to invest and live in any country of their choice. But is there any guarantee that children will see the same points as their parents do? They appeared excited until yesterday, Friday 19^th December, 2014, when my youngest daughter asked: When are we going to trade? Is this how to make money in forex? She said further that for a whole week now, all she received was "NO TRADE" calls. She started laughing, and to my greatest surprise, her mother joined her. My answer was that there could be a whole month without any chance to trade, so as to prepare her mindset for further "NO TRADE" calls. I told her it was not my decisions to make, whether to have a tradable report or not, and that I cannot tell the US government how many jobs to create in a month or tell the EU to introduce QE program or the Canadian government to reduce their inflation forecasts, so that I can trade. Forex news trading is an attempt to take advantage of any situation in an economy, whether good or bad. But I was able to let her know that if she can spend 10% of the time she spends in getting to work every day, in learning forex trading, she will not be taking home the meager salary she earns, when she used about twelve hours for work on daily basis. You only need a few minutes to set up your platform each time you have a report to monitor and possibly trade. It is only forex trading that can offer you that flexibility. Although I have not heard from the rest children, I know that she could be speaking their minds. As newbies, they will be wondering how to make money trading forex. But aren't they lucky? I only want them to follow my trade calls, that is all , not to rack their brains to evolve any trading strategy at all. They are not aware that only 2% of forex traders are now successful. If I am not experienced enough, this is capable of affecting my composure and calm, looking for a good trading opportunity. I could have rushed to find one trade either good or bad to "pacify" her. Do not allow external factors to ruin your strategy. If you are being taunted and laughed at by those close to you because you have been carrying you PC about without anything to show for it yet, don't be distracted. It is the end that justifies the means. I shall dedicate this strategy to my grand daughter, whose name is: Ilenbilu =meaning, "I know what I am doing". The name will become more relevant when the outcome of my five years of research is adjudged not to be a waste of time. My family did not even believe that I was doing something meaningful. And some friends wished I failed in my research. But I have passed the first stage, which is the successful conclusion of the research. I wish everyone a successful forex experience.

Beware of external factors if you want to succeed in forex trading. I am offering equal opportunities to everyone to understudy this strategy and find out if it will be beneficial at the end of the day.

My children do not know I feel for them because I am not an advocate of working for anybody to earn livelihood. "It is suffering and smiling". I made that decision when I was only seventeen years old and since then, I have never worked for anybody. I like challenges and I take risks a lot and that is why forex trading is my “LAST BUS STOP” . It is difficult to make much impact in life when you are tied to the apron strings of others. I know many people share the same opinion with my daughter. Forex trading is not a place for quick money making, otherwise, you get your fingers burnt. Learning should be a continuous process. And forex trading is good for those who are not in a hurry to make money.

 

ADVANCE FOREX EDUCATION: PART FOUR: IT IS BETTER TO MISS A GOOD TRADE THAN TO TRADE A BAD ONE

THE GREAT COUNTDOWN BEGINS: " 7 LIVE TRADES" WITH "6 WINS"

ADVANCE FOREX EDUCATION: PART FOUR

IT IS BETTER TO MISS A GOOD TRADE THAN TO TRADE A BAD ONE:

 

One of the many factors responsible for the draw down in our accounts is the attitude of so many of us, forex traders, not wanting to miss out on any trade. Some traders even prepare a "balance sheet" in advance, on their trading accounts. They detail out how they intend to grow such accounts over some weeks, months or even some years as the case may be. They do not stop there, as they go on to indicate the exact percentage (%) profit on weekly, monthly or yearly basis which they expect to make over the period. Forex trading is not your farm where you can go to at the time of harvest, when it is time to do so. Including a "balance sheet" as part of your trade plan is very wrong. This is capable of creating undue tension in your psyche and you therefore become quite emotional, if not desperate to meet your target. I always warn forex traders against the idea of making budget before making the money to execute it. You must work hard first to make the money before making the budget on how to spend the money.

 

Forex trading is extremely speculative and you cannot sit in the comfort of your home or office and predict how much you are likely to make within a given period of time. Only forex scammers can promise you "heavens on earth" in order to dupe you of the little you have. If you box yourself into this “forex corner”, only God will help you, because you will become so desperate and gullible, thereby taking each and every trade you see as a potential access to reach your goals and you will be driven into making wrong decisions and taking bad steps, thereby culminating in taking bad trades.

 

You must be able to adopt a strategy and hold on to it at all times. If you subject it to periodic changes, it is not yet a strategy, it is still a prototype, a developing material for experimentation. Once it is adopted as a confirmed strategy, do not make changes to it.

If my trading strategy indicates a “ No Trade” it is a no trade for me, no matter what views others may hold about such a trade and I do not bother about the outcome or the price action afterwards. There is no time during the trading week when there will be no price actions or currency movements.This brings me to the topic for discussion:

 

 

IT IS BETTER TO MISS A GOOD TRADE THAN TO TRADE A BAD ONE:

 

It does not cost us anything at all to miss a good trade, because our accounts will not experience any debit of any kind, not even a commission to the broker will be charged for not trading. But in your desperation to have as many trades as possible, in order to meet up with your budget expectations, you end up taking unnecessary trades and having a lot of bad ones to increase the avoidable deficit in your account.

 

 Do not get your fingers burnt, due to your insensitivity to the risks and the speculative nature, of forex trading. If you miss a good trade, that does not make you a bad trader, in fact, it strengthens our resolve and determination to do better in due course. We must strive for perfection, although no one is perfect. Our attempt to attain perfection can be rewarded with excellence. As a perfectionist myself, I have no apology to give anybody for being one and above all, I am an incurable optimist, I always see the glass as half full, not as half empty, the way pessimists view it.

 

In addition, do not compromise any standards you have set for yourself. Stick to your plans, unless it is absolutely necessary to alter it, you must do so with cogent and verifiable reasons which you must document for record purposes and for confidence building too. You must believe in yourself before you expect others to believe in you. Let your confidence soar high and with your conviction, you can do the unimaginable. The forex market will always be there, no need for the rush to do the wrong things at the right time. Patience is a virtue and if you can explore and further exploit it, to the fullest, you will develop a good strategy that will be second to none. If any trade you take fails, a lot of known and unknown factors could be responsible, which I had discussed in the previous parts of Advance Forex Education. Do not allow anybody to suggest that a kind of "Support or Resistance Levels" could be responsible.

 

My intensive and very extensive research for five years have taken care of that. They are simply hypothesis and they are not useful. I delved into all those stuffs during my research work and much more. There is nothing anybody can tell me about forex that will be strange to me.

I deliberately used LIVE ACCOUNTS for my research work for the sake of confidence building because a Demo is always a Demo, not as viable as a live trading environment. This is the reason why forex brokers will rush new traders to demo-trade for a few days to declare them ready to trade away their hard earned money. Some will even say: Master the forex markets in 60 minutes,or even seconds, what an irony of life. A calculated attempt to mislead and misinform the public.

 

MISSING A GOOD TRADE IS NOT A FAILURE AT ALL:

 

If we all agree that it is better to miss a good trade than to trade a bad one, then, what do we say, if we missed 40 bad trades and had only one good trade in a month? Did I hear you say bad? of course not. It is excellent, fantastic, wonderful, fabulous and great. Look for more adjectives, to describe the outcome and whatever good adjective you use, is correct. That is so, because, your success in forex trading is not only measured by the number of good trades you are able to place alone, but by the number of bad trades you are able to avoid. If all forex traders can miss 99% of bad trades and trade 75% of good trades, there would be no forex brokers and liquidity providers to carry the burden and the risks of their capital outlay.

 

 

 Trading the news is beyond looking for a comfortable deviation or surprise, as my numerous “NO TRADE CALLS” have once again proven, that deviation and element of surprise alone, cannot successfully trade the markets. Do not plan to trade badly by shifting your focus from the strategy you have to the need to trade at all times.

 

I always position myself to see if there is an opportunity in any report I want to consider for trading. I do not wish it comes to be a good trade, I only wish I hold on to my strategy at all costs, without shifting attention from that. If it is a tradable report, fine and good but if not, fine and good. Good and bad trades will always come and go and the rate of your success depends on the side of the trade you lean on. Each time I have a NO TRADE call, I feel a sense of relief, because, these were the same bad trades that nearly ruined my chance to do a research work on forex trading. I always reflect on how we used to lose in the LIVE TRADE ROOM I subscribed to way back in 2007. If there was some level of guarantee that we could make at least 50 pips a month, I would not have left the LIVE TRADE ROOM. The monthly subscription was $300, and if I could trade a standard lot to make $500 a month from 50 pips, I would not have quit the LIVE TRADE ROOM. But it was absolutely difficult to make money there in the LIVE TRADE ROOM because the moderators did their best but their best was not good enough for me, so I left. They over relied on deviation or the element of surprise. For instance, when the US Non Farm Payrolls report has a deviation of 70k and above, we must trade to "make money". Most of the times, no so.I can now see clearly why they were not able to trade well, because they were doing the wrong things at the right time and sometimes, doing the wrong things at the wrong time. Having a deviation of 1.2% on US GDP, does not mean you can make money trading that report, it goes beyond that. A deviation of 0.8% on UK GDP can fail woefully if all factors are not in place and this is the reason, I am a strong advocate of : COMPREHENSIVE NEWS TRADING, THE ONLY WAY FORWARD, which embraces all the components of news trading.

 

Even, until recently, most of these bad trades made me to lose a substantial amount of money to many forex brokers. I would be very grateful, if a lot of you could avoid the pitfalls I emerged from, due principally, to my resilience in anything I do, because:

 

I DO NOT ADMIT FAILURE UNTIL I HAVE MADE MY LAST ATTEMPT AND I DO NOT MAKE MY LAST ATTEMPT UNTIL I HAVE SUCCEEDED. This is the “corner stone” of my resilience.

 

 I want you to adopt this same attitude and remain focused. It is quite better to miss a good trade than to trade a bad one and I want to expand it further:

 

 It is even healthier to miss some good trades than to trade some bad ones. STAY FOCUSED.

 

 

**** The countless number of money saving " NO TRADES" are handy and equally
healthy for our trading accounts.
For Your Forex Trading Breakthrough? Yes, You Can, and at NO COST at all.

ADVANCE FOREX EDUCATION: PART THREE: APPLYING ECONOMIC DATA TO FORM YOUR TRADING STRATEGY

 ADVANCE FOREX EDUCATION: PART THREE: APPLYING ECONOMIC DATA TO FORM YOUR TRADING STRATEGY

 

THESE ARE THE FIRST STEPS YOU MUST TAKE:

 

1.Knowing exactly when each economic indicator is due to be released,because, economic indicators are the live wire of forex trading. 

2. Keeping record of the calendar of all economic events of the week so as to track all the reports as they come in. Therefore, I would recommend you use the Forex peace army and Cashbackforex calendars.

 

3.  Understanding what particular aspect of the economy is been revealed in the data and the default currency pair of the affected country. For example, you should know which indicators measure the growth of the economy –[GDP] and the others. Such information is readily provided by the economic calendar providers.

 

4.  You must note that all economic indicators are not created equal. This is so because some have acquired much greater potential to move the market than the others.The calendar will mostly indicate the high impact news events.

5 .know the indicators the market are relying on. For example, if the prices of goods and services or inflation is not a crucial issue for a particular country, inflation data will probably not be as keenly anticipated or reacted to by the markets. On the other hand, if the economic growth of a nation is a vexing problem, changes in employment data  or GDP will be eagerly anticipated and could precipitate tremendous volatility following their release.

6.  The data itself, whether it is not an important aspect of that economy at the moment and  whether or not it falls within the market expectation.If the released data is within the expectation of the economists surveyed, the price action may be muted. What all news traders anticipate each time a report is being awaited, is the element of surprise. There must be a significant difference between the expected figure and the actual figure released.

7.  Don’t get caught up in the headline news. Getting caught up in the headline news is being hasty in taking a decision whether to trade the report or not. There are other components of the news that can affect price action. One of such is the revisions.

8.  Speaking of revision, don’t be too quick to pull the trigger should an economic indicator fall short of market expectation. Most economic releases contain revisions to previously released data. For example, if US Durable Goods Orders should rise by 0.5% in the current month, while the market is anticipating them to fall, the unexpected rise to could be the result of a downward  revision to the prior month. The Durable Goods Orders figure might have been originally reported as a rise of 0.5%, but now, along with the new figure, is being revised lower to say, a rise of only 0.1% therefore, the expected rise in the current month is likely the result of a downward revision to the previous months data.

 

The negative revision will definitely affect the positive figure released and conversely, positive revision will adversely affect negative figure released.

9. Don't forget that there are always two sides to a trade in the foreign exchange ( forex )market. It is either you are buying or you are selling. Once you have taken a position, there is no going back if you just discovered that you had made a mistake. What you should do is to quickly close the trade as fast as you can.

10. Do not be hasty in your judgment of any price action. Why we lose so much in forex trading, is by chasing the price action. There will always be price movement in the market, whether a news item has just be released or not. We intend to forget very often that the price going up now can turn 180 degrees south in the next moment. I sympathize with those forex scalpers and the reason is simple. You cannot be a professional forex trader by practicing how to scalp the markets for pips.

Most economic indicators can be divided into two categories. [1] leading indicators and [2] lagging indicators.

1. Leading indicators are used to predict changes in the economy and

 

2. Lagging indicators are the economic factors that change, after the economy has already begun to follow a particular pattern or   trend.

By taking note of all the changes you see and mastering the movement of prices, you are certainly on your way to developing your own trading formula, instead of following the majority of forex losers. It is only in forex trading the majority is not in control of their destiny in achieving financial freedom.

ADVANCE FOREX EDUCATION PART TWO: HOW ECONOMIC INDICATORS DETERMINE PRICE ACTION

 ADVANCE FOREX EDUCATION PART TWO: HOW ECONOMIC INDICATORS DETERMINE PRICE ACTION

You may already be aware that economic indicators determine how price action is generated.
I am going to highlight how different economic data affect prices and the way to carry out your
 study in order to achieve verifiable results.

HOW INTEREST RATES AFFECT CURRENCY PRICES
The best way to think about interest rates is how much it is going to cost you to do business in a particular country and the interest likely to earn by so doing or by simply depositing such money in the bank to generate interest. You can also say, what does it cost you to borrow money  whether for our mortgage or how much we will earn on our bond and money market investments. Interest rate policy is actually a key driver of currency prices.

Fundamentally speaking, if a country raises its interest rates, the currency of that country will strengthen, because the higher the interest rates, the more foreign investors are attracted to that country.
Conversely, if a country reduces interest rates, the currency will weaken and foreign investors will not show keen interest in doing business there. These are natural laws of demand and supply.

HOW RISING OR FALLING GOLD PRICES AFFECT CURRENCIES.

Historically, gold is a country’s natural alternative to the US dollar. So, given the inverse relationship between gold and the US dollar, currency traders can take advantage of the volatility in gold prices in several ways. For example, if gold price breaks an important price level, due to some events, one would expect gold to move higher or lower in the coming days or months. With this in mind, forex traders would look to sell dollars and buy Euros,and vice- versa for example, as a proxy for higher or lower gold prices.

HOW OIL PRICES CAN GIVE FOREX TRADING OPPORTUNITIES.

Higher oil prices negatively impact the stock market prices of companies that are highly dependent on oil to drive their industries, fuel automobiles, air crafts etc, since the more expensive oil is, it means higher expenses and lower profits for these establishments.
In the same way, a country’s dependency on oil determines how its currency will be impacted by a change in oil prices. The US’s massive foreign dependence on oil, makes the US dollars more sensitive to oil prices than other countries, although the US is becoming self sufficient in oil production gradually. Therefore, any sharp increases in oil prices are typically dollar-negative.
If you believe the price of oil will continue to increase for the near future, you could express that view point in the currency markets by once again favoring commodity-based economies like Australia and Canada or selling other energy-dependent countries like Japan.In the recent past, when the Organization of Oil Exporting Countries ( OPEC ) could not cut down on the monthly oil quota production as a result of falling oil prices, we witnessed the further collapse of oil prices and I was able to predict the "selling off " of the Canadian Dollar. That is the effect of fundamentals which no known or unknown technical analysis cannot do.
 
The general rules governing indicators are:

1.Knowing exactly when each economic indicator is due to be released,because, economic indicators have the potential to generate volume and move prices in the market.
2. Keeping track of the calendar of economic indicators will also help you make sense out of otherwise the unanticipated price actions in the market? Therefore, I would recommend you use the Forex peace army and Cashbackforex  calendars.

In as much as I don’t want to bore you with too much theory –based analysis, I only want to acquaint you with the factors that informed my research work. 

The Gross Domestic Product [GDP]

This is the measure of the total number of all goods and services produced, either by domestic or foreign companies. GDP is the indicator of economic output and growth and simply put: The health of the country. The manufacturing sector accounts for about one quarter of the economy. The capacity utilization rate provides an estimate of how much factory capacity is in use. The Manufacturing PMI,
and the Services PMI, with Industrial production are all components that determine the GDP of a country including the following:

Producer price index [PPI] –the producer price index [PPI] is a measure of price change in the manufacturing sector. It measures the average change in selling prices received by domestic producers in the manufacturing, mining, agriculture and electricity utility industries for their output. The PPIs is most often used for economic analysis and those for finished goods, intermediate goods and crude goods.

Consumer Price Index [CPI]- The consumer price index[CPI] is a measure of the average price level paid by urban consumers [80% of population] for a fixed basket of goods and services. The report is based on  price change in over 200 categories. The CPI also includes various user fees and taxes directly associated with the prices of specific goods.

Durable Goods Orders- Durable Goods Orders is the measure of new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.   Durable goods are defined as  goods that last an extended period of time (over three years ) during which its services are extended .
Employment Change Index. The Employment Change is the measure of the number of jobs created in the past one month in a given economy. 

Retail sales – The retails sales report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of businesses in retail trade  throughout the nation. It is an indicator of broad consumer spending patterns and is adjusted for normal season  variation, holidays and trading day differences. Retail sales include durable and non – durable merchandise sold, and services, including taxes incidental to the sales of merchandise, only excluded are sales taxes collected directly from the consumers.


I will not be able to list all the economic indicators available. I want you to do a quick study.
When you have the list of all the economic events for the week handy, note the time for each release and make sure you observe the price action of the currency of the country whose indicator you are studying. You will begin to understand why fundamentalists are dreaded and feared by some forex brokers, mainly the market makers, who operate Dealing- Desk Platforms.

 In conclusion therefore, and in view of  these fundamentals, I have evolved a revolutionary trading strategy that does not only make us successful forex traders but give us the absolute peace of mind to put the strategy into use by trading the foreign exchange market (forex) in the best way possible. As you are all aware, these fundamental indicators are released every single minute, 24hours a day , five days a week by over 200 economies all over the world . Whether in Sweden or Denmark, China or Hong Kong, New Zealand or Mexico, Poland or South Africa – infect, all countries of the world. We have the mechanism to track all the economic indicators from the advanced countries –G7, to the developing countries, and to the third world countries. Based on these scenarios, what I do is to identify the leading indicators ‘that move the market and capitalize on them and make members of public smile to the banks.  THIS IS EXACTLY WHAT TECHNICAL ANALYSIS CANNOT DO. TECHNICAL ANALYSIS CANNOT MAKE
PRICES TO RISE OR FALL.   

http://comprehensivenewstrading.blogspot.com/

ADVANCE FOREX EDUCATION: FUNDAMENTAL ANALYSIS VERSUS TECHNICAL ANALYSIS

ADVANCE FOREX EDUCATION (PART ONE)

FUNDAMENTAL ANALYSIS VERSUS TECHNICAL ANALYSIS

WHAT IS FUNDAMENTAL ANALYSIS?

Fundamental analysis is the study of the core underlying elements or indicators that influence the health of the economy of a particular country. It is the method of study that predicts price actions and market directions by analyzing economic indicators, government policies, societal and political factors, natural disasters, outbreak of wars, epidemics, earth quakes, etc. within a business environment.

Think of the financial market as a big clock, the fundamentals are the gears and the springs that move the hands around the face. There are the engines that move the automobiles. You can look at the clock and tell what time it is now, and the fundamentalist can tell you how it came to be this time and more importantly, what time or more precisely, in FOREX TRADING, what price it will be in the nearest future or at least whether the price will go up or come down, but the technician will not be able to do so.And yet the talk about professional analysis becomes more meaningless.

 

THERE ARE TWO BASIC CLASSES OF FOREX TRADERS.

Fundamental analysts and Technical analysts. It is either you are a “fundamentalist” or you are a “technician”. Some people find it quite convenient to be neither here nor there. Some technical analysts find it very difficult to stick to their analysis due to the “fear” of pending economic news data or critical political decisions or even the myriad of societal issues that influence prices. The fundamentalists can successfully remain focused on these events without being distracted by the various technical indicators that are not empirically proven to be effective in forex trading. And those who are on the side lines will tell you that they still find some "GOOD" things about support and resistant levels. They are not professional traders.

They are just trying to create that impression before new traders who are inexperienced. 

In news trading, there is no way any support or resistance levels can help you in determining when to take profit and when to close a losing trade.

In my seven years of forex business, I have tried unsuccessfully to get a single technical analyst to correctly predict price action based on any formula, all to no avail.

They only come to terms with fundamentals, when their LONG OR SHORT

POSITIONS have been "disorganized" by some news releases. I always ask for their so called resistance and support levels when price action hits their Stop Loss. Fundamentalists are said to be purists to a large extent, because it is quite easier to remain a fundamentalist, once you are one, than to remain a technician for a long time. Due to the fact that over 95% of technical analysts fail, they readily embrace the principle of " fundamentalism", in forex trading. We fundamentalists, are quite successful in forex trading because, we rely on the factors that actually drive the markets. Incidentally, most forex brokers who run Dealing-Desks, do not like fundamentalists or news traders. We are feared and dreaded, not because we trade forex, but because of the pinpoint accuracy at which some price action can be predicted by us. That is the reason why there are numerous cases of forex brokers, closing the forex accounts of traders who trade the news. The Technician is what the Fundamentalist is not.You cannot "marry" the two together.One thing that readily comes to mind is that, once you are able to delve further and further to acquire knowledge, you will discover that your knowledge and understanding of the global financial market will increase immeasurably.
Fundamental analysis is a very effective way to forecast economic conditions, but not necessary exact market price but price action.
A trader who studies the markets very well, using fundamental analysis, is in a better position to correctly predict price action, not the trader who rely on objects and features that have nothing to contribute to price action.
Forecasting models are as numerous and varied as the traders and market buffs that create them. Two people can look at the same data and come up with two different conclusions about how the market will be influenced by it. Therefore, it is quite important that before casting yourself into a particular mold regarding any aspect of market analysis, you most study the "fundamentals" and see how they best fit your trading style and expectations. Don’t succumb to ‘’ PARALYSIS BY ANALYSIS’’.  Sometimes, traders fall into this trap and are unable to pull the trigger on a trade. This is one of the reasons why a few traders turn to technical analysis that prove no guarantee of any sort. A lazy trader's fortress.
Trading in particular, without knowing the intricacies of forex trading, is not the best approach. For forex traders, the fundamentals are everything that makes a country tick. From interest rate and central bank policies to natural disasters, the fundamentals are the "main thing". I am still searching for the 

first forex broker that will teach forex traders how to trade the US NON FARM PAYROLLS and other high caliber news data. Watch out for part two.Some people are already annoyed of me and my write ups. Who cares?http://comprehensivenewstrading.blogspot.com/

 

ONE "GOOD" TRADE CAN COVER TEN "BAD ONES"

 ONE "GOOD" TRADE CAN COVER TEN "BAD ONES"

Though forex trading is highly speculative, you can add some " elements" an edge, to it with the way you approach trading and the strategy you deploy to achieve success. Has it occurred to you why the very few traders who succeed in forex business, remain successful not matter the odds? It is the ABILITY to adhere strictly to a winning strategy.

Do you know just one GOOD winning trade can cover the losses of ten BAD losing trades?
This is how:

1. When you have a confirmed strategy you always use, come rain or shine, you do not deviate from it. No matter the temptation to start experimenting more strategies, you stick to it.

2. You have a certain volume of trade you execute each time you trade, without any form of inconsistency. If you are trading one standard lot, it is one lot at a time, No temptation to increase it just because you want to HIT IT BIG.

3. You maintain the same level of Stop loss, Take profit, Trailing steps, Break Even, levels at all times. When you only  take profit manually, you equally follow the laid down strategy.

4. When you only trade the economic data you are familiar with or the way you believe in trading, but making sure the same strategy and methodology is followed.

5. You are now ready to join the BIG LEAGUE of 2 % successful forex traders if you can master all these points and make a commitment to adhere STRICTLY to them.

If you allocate just 10 pips of potential loss as your stop loss target, and you trade one standard lot, that is 100,000 US Dollars volume, you should be prepared to lose $100 for each bad trade.
If you follow your strategy very well and you cannot get one GOOD winning trade of about 100 pips
(or even less or more) that can take care of any losing trades in the coming days, it means the strategy
you are using is not good enough.

One GOOD trade of 100 pips can cover your ten BAD trades of losses if you are consistent.
It is this level of assurance and consistent CONSISTENCY that creates the difference between the Winners and the Losers. This is the reason why those who are successful in forex trading, always remain successful.

LETS USE MYSELF AS A CASE STUDY:

If I have one GOOD trade for example and I gross 100 pips of profit, it will take me at least ten BAD
losing trades to lose the profit made from that single GOOD trade.
Is it possible for me to have ten BAD TRADES in a roll? No, not at all. It is not possible for me to have such a losing streak, since I use the same strategy over and over again.

The major problem forex traders have, is the inability to evolve a winning strategy and stick to it.
Those who are unable to do so, fail to admit it, and they continue to experiment, trying different strategies endlessly while the losing streak continues.
Think twice now and take a bold step today. If you cannot make 100 pips in a trade, start by making 10 and build yourself up professionally instead of HOPING for one major breakthrough thereby, making yourself a PRISONER OF HOPE.

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