Hi everyone
Well, it was literally "back to the drawing board" after a few very poor trading decisions and I was just about to give up completely when not long ago I found an email in my inbox - Another new system to make one millions with forex trading and I was just about to delete it without reading it, but I thought what the heck - I read it and WOW am I glad I did!!
It was called the "Magic Breakout" trading strategy. It's a PDF file with all the instructions. An awful lot that they say makes sense. Here's an excerpt :
"Let's discuss the false high-breakouts (the same holds for low-breakouts). There are times when price breaks a significant high, a buy order is filled, long position is opened, but the price quickly turns back down and never comes up or Stop Loss is filled. The trader has to exit position with a loss. Small losses
are not something unusual. Every professional trader has losses in Forex trading, you have to admit it. But a profitable trader wins more than loses after time. We have tested some breakout systems on all major currency pairs ten years back. Most of the breakouts were false breakouts or resulted in a small profit. Any system that relies purely on breakouts does not work consistently. Since we, Tim and Julie, are in the financial markets for more than ten years, we have collected some sort of information the large banks and corporations do not want you to know.
A large bank has enough money to move the market for a while. When the price hits the significant high again, it should normally bounce back from this high forming a double top pattern. But momentum traders would go long when a breakout happens - it is the well known practice explained in previous paragraph. When the price comes close enough to the high, traders inside the bank quickly buy a large volume of one currency pair ($ millions!). They move the market a few pips up and a forced breakout happens! There is a bunch of buy-orders lying just above the high and these orders get filled immediately. Then the market moves some additional pips up because of the new long positions. After that the bank happily closes its own large position (sells the millions back) and the price quickly turns back. The banks “earn” great amount of money doing this unfair business. They do it a few times every day..."
Well, it was literally "back to the drawing board" after a few very poor trading decisions and I was just about to give up completely when not long ago I found an email in my inbox - Another new system to make one millions with forex trading and I was just about to delete it without reading it, but I thought what the heck - I read it and WOW am I glad I did!!
It was called the "Magic Breakout" trading strategy. It's a PDF file with all the instructions. An awful lot that they say makes sense. Here's an excerpt :
"Let's discuss the false high-breakouts (the same holds for low-breakouts). There are times when price breaks a significant high, a buy order is filled, long position is opened, but the price quickly turns back down and never comes up or Stop Loss is filled. The trader has to exit position with a loss. Small losses
are not something unusual. Every professional trader has losses in Forex trading, you have to admit it. But a profitable trader wins more than loses after time. We have tested some breakout systems on all major currency pairs ten years back. Most of the breakouts were false breakouts or resulted in a small profit. Any system that relies purely on breakouts does not work consistently. Since we, Tim and Julie, are in the financial markets for more than ten years, we have collected some sort of information the large banks and corporations do not want you to know.
A large bank has enough money to move the market for a while. When the price hits the significant high again, it should normally bounce back from this high forming a double top pattern. But momentum traders would go long when a breakout happens - it is the well known practice explained in previous paragraph. When the price comes close enough to the high, traders inside the bank quickly buy a large volume of one currency pair ($ millions!). They move the market a few pips up and a forced breakout happens! There is a bunch of buy-orders lying just above the high and these orders get filled immediately. Then the market moves some additional pips up because of the new long positions. After that the bank happily closes its own large position (sells the millions back) and the price quickly turns back. The banks “earn” great amount of money doing this unfair business. They do it a few times every day..."