Many traders have been trying for a long time to beat the forex. It is not easy. If someone comes and look at forex and how prices move, he would say it is easy. But it is not. It is very difficult, it is even difficult to make 1 pip! In forex you cannot have a guaranteed 1 pip. If someone does have a system to make a 1 pip "guaranteed", I will make him a millionaire.. oh no a TRILIONAIRE. Why? Because you can repeat the process again and again, and leverga it more and more! But this 1 pips guarantee is impossible.The main barrier to achieving this is the EDGE. Forex has an EDGE over us, the traders. Take for example the casino. Take the roulette. The edge in the roulette is the green zero, when playing on colors. And when playing on numbers, the edge is the payout. In Roulette there are 37 numbers. But if you guess the number you will win 36 to 1. Taking for granted that the outcome of the game are random numbers, then if you play for longterm you can never win. The same happens when betting on black or red. You get paid 2-1, but if the outcome is green, you lose!The same thing happens in forex. Do not tell me that forex is not random. If you look at forex closely you see that market moves in patterns or trends, but if you look at it from a wider view, the market is just a random market. NO ONE knows the outcome, even Bernanke. Because how traders act towards news, only God knows.Now, the Edge in forex market is the spread. Because everytime you enter a position pay for the spread. Before making any winning, you will have to counter this spread. If we suppose that we do a million random trade, we would not end up breakeven, but losing. This is why people say that all systems in longterm LOSE.This is a fact. But, one should be clever enough to come up with ways to eliminate this edge.The following are some suggestions and ways to eliminate this edge, which forex has over you.
1. USE a dealer which gives you the least spread available in market
2. USE a dealer with no comission
3. Use good exit strategies in winning trades (take profits)
4. Use wider stop trading. This is an important issue. Because according to above, you will tend to end up losing the longer or the more you trade. It is better to trade less and win more. For example, if you acheive your target for this month, you should stop trading until you see the conditions are favorable again. The less you trade the more chance you have to end up in profit.
5. Every pips counts. Try to save pips. See my previous tips "real trader's tips"
60 enter only low risk to reward ratio trades
Which one do you use?
Which of them do you use ?
There is a post here in the forum somewhere, where Scorpion showed how he beat the spread, opening positions with one goal, to get it to the 0 fast. You should check it out, will be interesting for you.
Just tell us what is your strategy and discuss here.
see my own tips on my site
Where is the post by scorpion. Could not locate it.
I use the known Hans strategym, but only trading EURUSD second session only.
Also I use SIBKIS and fozzy methods. My live results can be located at Welcome to My Fx Report - Forex Trading
1. Fine how the broker is manipulating price or software.
2. Develop a strategy where the broker has little edge over you
3. trade it and make money
Rock1 but you still need discipline. It is easy to say or write, but very difficult to implement!
Hilarious, only the banks win.....I've had several years in trading securities and at least the small fry has a chance to make some money since there are proper market regulations that hold firms by their necks...In trading forex, its like a dang free-for-all with those institutions and the majority of times I'm on the losing end...Since the use of some signal software out there, I've been lucky a few times but I can't say that I'm a millionaire yet
But then again all is fair in love and war?!
Lina, securities are another story, I will not discuss them here. However in forex, there are losers and there are winners. You are right, banks in the end (in our case, brokers) because they collect spread and comission. It is more like the edge in casinos. However, real professional traders know how to beat this edge. I have written an article in the past about beating the edge, but I do not know where did I put it. Any way if you look at A Real Trader's Tips you may find it, and will find many useful techniques on beating th market.
You cannot beat the market but you can beat your broker to the game based
on some condition that your broker is NFA registered and the trading system
you are using.
The reason why you cannot beat the market is that your order have no influence on the market, it cannot change the chaos the market has set for itself for the day, it cannot change the direction. The market is the system
we are trying to speculate. The market is the problem of study.
The fact remains that most traders do not want to accept few things
like the popular trading strategies they are using are wrong and are not met to speculate the market. Most wants free EAs' and Mechanical systems that makes their brokers money! That is no one's fault!
Those using own system to beat their brokers pay for them because
they want to beat their brokers and be profitable and they are getting some good results too.