Does the market trade against you?
Does the Market Trade Against You
Delca;
I posted this in January. From the NFA. I think it's important.
Notice to Members I-08-03
January 25, 2008
Effective Date of Amendments to the Interpretive Notice Regarding Forex Transactions
NFA has received notice that the Commodity Futures Trading Commission has approved amendments to the disclosure section of the Interpretive Notice entitled "Forex Transactions." The amendments will become effective on June 1, 2008.
The amendments require prescribed disclosure language that makes clear tocustomers that a Forex Dealer Member ("FDM") is acting as acounterparty in forex transactions and may profit from the market moving against the customer. The amendments require the disclosure to be prominently displayed in uppercase letters in at least 10 point size type and to be separately acknowledged by the customer. The amendments also give NFA staff the authority to approve alternative language in certain circumstances.
FDMs do not need to obtain an acknowledgment from existing customers or persons who become customers prior to June 1, 2008. FDMs must, however, provide the disclosure to those retail customers in a manner designed to ensure that they actually receive it. For example, merely including the disclosure on the firm's web site is not adequate, but sending customers an e-mail with the disclosure would be sufficient in most circumstances.
A copy of the relevant section with amendments marked is attached for your convenience. Additionally, NFA's November 29, 2007, submission letter to the CFTC contains a more detailed explanation of the changes. You can access an electronic copy of the submission letter at National Futures Association | News Center.
Questions concerning these changes should be directed to Sharon Pendleton, Director, Compliance (spendleton@nfa.futures.org or 312-781-1401) or Michael A. Piracci, Senior Attorney (mpiracci@nfa.futures.org or 312-781-1419).
FOREX TRANSACTIONS
* * *
B. COMPLIANCE RULE 2-36
* * *
1. Disclosure - Members must provide retail forex customers with understandable and timely disclosure on essential features of forex trading
* * *
At or before the time a customer first engages in a forex transaction, a Member and its Associates should disclose how the Member will be compensated for the services it will provide to the customer.
Additionally, a Forex Dealer Member must describe to the customer the nature of these foreign currency transactions. Therefore, a Forex Dealer Member must provide, and the customer must separately acknowledge receipt of, either the following disclosure language or other appropriate language (based upon the Forex Dealer Member's business model) approved by NFA staff, which must be prominently displayed in all uppercase letters and in 10 point size type or larger but in any event no smaller than any surrounding type:
THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. [MEMBER] IS ACTING AS A COUNTERPARTY IN THESE TRANSACTIONS AND, THEREFORE, ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY. AS A RESULT, [MEMBER]'S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS [MEMBER] ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES [MEMBER] OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND [MEMBER] MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS.
IF [MEMBER] ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT [MEMBER] MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE [MEMBER] ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM [MEMBER] OR ANY OF ITS SOLICITORS.
Hi Traders
Have you ever felt like the market is just waiting for you to enter, then it goes the other way? Then just as you get out, the market seems to reverse and go exactly where you thought it would when you entered? It almost seems that the pros know where your emotional decisions will be made, then they trade against you!!!! There are ways to know where these probable turning points are. Top traders around the world use FibMaster's techniques to calculate probable turning points in the markets.
Your Opinion ....please...guessing... are you with some confidence crisis after a couple bad trades? SL was hit for few pips, nervously closed your trades sooner? I have been there 
Market have two sides, the right side and the wrong one.
We need to be smart and position us with the right side, but problem is how. In a few words, where top traders are.
Most of the time the problem is our mind playing dirty tricks. We enter in a trade using the indicators and we exit scared by looking the bar going against us. After that we believe the market is against us (chapter 2 of trading for a living and next ones).
Impatience is another big problem that blind our logic. We have suffered a couple of consecutive losers trades and we want revenge ignoring the market is not another human, it's just created by humans.
The followers of my Follower System in Elite section sees I just upload trades from time to time, most winners or even.
This is because at some point I thought that trade just because I need to trade was hurting my and my pocket. The need of "revenge" needed to be erased for the health of my account.
And at some point I've stopped to look for more indicators to help my trading because my trading strategies where fine, it was my mind who needs help. And started to spend lot of time looking charts and trying to discover why the prices moves in the way it does by just using logic.
Behind every famous indicator, if we go to the source, we could find the creator thought that indicator following some logic, trying to include the psychological behavior of the crowd within the calculus.
Last point it's completely different when you work for a company than for your own. It's like to learn to walk again.
Every I've written is from one book that unfortunately comes to my hands after I've started to trade for my own.
I was reading the performance of Lien and Schlossberg since year begin and sometimes it's unbelievable how they just drop "pretty sure" trades. However the performance says winners are huge more than losers. And I'm saying this a bit disappointed with this two guys but for another reason. But most top traders just trade when they have to do: right moment and right side.
Your Opinion
It`s not a market....You must understend that Fx is a simple scam...All prices in this huge scam are generated by superserver....It translates all quoaters to your broker....This software is made by pro programmers...and so its very very difficult to bit this basturds...
goes the other way? Then just as you get out, the market seems to reverse and go exactly where you thought it would when you entered? It almost
seems that the pros know where your emotio
they trade against you!!!! There are ways to know where these probable
Hahahahaha
It`s not a market....You must understend that Fx is a simple scam...All prices in this huge scam are generated by superserver....It translates all quoaters to your broker....This software is made by pro programmers...and so its very very difficult to bit this basturds...
goes the other way? Then just as you get out, the market seems to reverse and go exactly where you thought it would when you entered? It almost
seems that the pros know where your emotio
they trade against you!!!! There are ways to know where these probableROTFLMAO
Whatever you have to tell yourself so as to keep denying the simple fact you are part of the 99% whom can't trade.
Too funny 
Skypilot
It`s not a market....You must understend that Fx is a simple scam...All prices in this huge scam are generated by superserver....It translates all quoaters to your broker....This software is made by pro programmers...and so its very very difficult to bit this basturds...
goes the other way? Then just as you get out, the market seems to reverse and go exactly where you thought it would when you entered? It almost
seems that the pros know where your emotio
they trade against you!!!! There are ways to know where these probableI too have had this problem of the market running away from my entry. But instead of blaming it on some kind of superserver, I just put it down to my lack of understanding of how the market works.
When this does happen, I can spend a couple of weeks trying to figure out what went wrrong eg. was there news out, was it close to a pivot line or fib etc etc.....
Use the loss to your advantage and try to figure out why it happened. You will then learn not to enter when something like that shows up again.
This is just my two bits worth.
I too have had this problem of the market running away from my entry. But instead of blaming it on some kind of superserver, I just put it down to my lack of understanding of how the market works.
When this does happen, I can spend a couple of weeks trying to figure out what went wrrong eg. was there news out, was it close to a pivot line or fib etc etc.....
Use the loss to your advantage and try to figure out why it happened. You will then learn not to enter when something like that shows up again.
This is just my two bits worth.Good insight.
A football player or tennis player or whatever who wants to be good in their own learn from his mistakes.
Could you imagine a football player getting out from the field because he doesn't know how to kick penalties 
Good insight.
A football player or tennis player or whatever who wants to be good in their own learn from his mistakes.
Could you imagine a football player getting out from the field because he doesn't know how to kick penalties Even David Beckham missed a lot penalties shot.
Even David Beckham missed a lot penalties shot.
Beckham ?.... He is not a football player. He is an advertising model (a very good one).
Why prices move
Hi,
QUOTE from Linuxuser "And at some point I've stopped to look for more indicators to help my trading because my trading strategies where fine, it was my mind who needs help. And started to spend lot of time looking charts and trying to discover why the prices moves in the way it does by just using logic." UNQUOTE
You are right on all points,it is your mind that is responsible for most of your trading results,not your indicators...give same system to 10 different people and you will get 20 different results 
Not the indicators ,but your beliefs and your emotions... They shape both your view of the market and how you use/misuse your indicators...They act as a filter that allow you to see what is not there and blind you to the obvious...How many times,the day after a particular bad trade,you watch the chart and seeing the obvious ask yourself...How didn`t I see that(trend was down/bought at weekly resistance/sold at daily support/fill w/your favourite)?
Prices move in the way they do pushed and pulled by money flow..to predict potential direction for prices measure actual money flow direction...AND ALWAYS..when in a trade,the moment you see moneyflow changing,exit your trade,because the concept that supported it is no longer valid.
Regards
Simba
It's interesting to add a few examples about how the market plays.
Gold August 2007, Daily RSI overbought, price 686.
Gold November 2007, Daily RSI STILL overbought, price 839.
Gold January 2008, Daily RSI overbought, price 900.
Gold March 2008, Daily RSI STILL overbought, price 1000.
By entering short when Gold was OB we could say Market is trading against me because we where screwed time after time.
What about Oil today?
Hell with it. Go long and see what's happen. Why?
Because 2/3 time per day we hear analysts pointing to $200 and this is creating a wave of emotions pulling up the price. Just be careful when you hear "seems there is no limits for the uptrend" or "seems Euro is going to the moon". After some comments like that DJIA falls 14000 ticks and EURO 600 pips.
Cause: Emotions
However, our hope is Economy rules are more powerful than emotions. Because this rules are long term based meanwhile emotions does not live so much.
Remember Charles Dow?
I would like to quote what A Elder says about his Force Index:
Trading Psychology
When the market closes higher, it shows that bulls won the day's battle, and when it closes lower, it shows that bears carried the day. The distance between today's and yesterday's closing prices reflects the margin of victory by bulls or bears. The greater this distance, the more important the victory...
...Prices reflect what market participants think, while volume reflects their feelings. Force Index combines price and volume- it shows whether the head and the heart of the market are in gear with each other.
When Force Index rallies to a new high, it shows that the force of bulls is high and the uptrend is likely to continue. When Force Index falls to a new low, it shows that the force of bears is big and the downtrend is likely to persist.
If the change in prices is not confirmed by volume, Force Index flattens out and warns that a trend is about to reverse. It also flattens out and warns that a trend reversal is near if high volume generates only a small price move.
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Hi Traders
Have you ever felt like the market is just waiting for you to enter, then it goes the other way? Then just as you get out, the market seems to reverse and go exactly where you thought it would when you entered? It almost seems that the pros know where your emotional decisions will be made, then they trade against you!!!! There are ways to know where these probable turning points are. Top traders around the world use FibMaster's techniques to calculate probable turning points in the markets.
Your Opinion ....please...