Forex Factory (
-   Interactive Trading (
-   -   Knowledge is Power (

Warren Forex Aug 23, 2008 11:08am | Post# 861

Female Ninja's !! was inspired by this thread over at Calculated Risk to make that poster.

Leveraged Ninja writes: They better not stop making ninja loans. Or else.
Leveraged Ninja 08.22.08 - 1:26 pm

Margin Call of Cthulhu writes: You're out of luck on that lyre loan. So is my buddy the ninja. He was really excited that they were marketing directly to him. It's really hard for ninjas to document income.
Margin Call of Cthulhu 08.22.08 - 1:26 pm

NINJA loans explained by Wiki:

"No Income No Job No Assets:

A ninja loan is a type of subprime loan issued to borrowers with No Income, No Job, (and) no Assets. The phrase was coined by HCL Finance as a name for one of their finance products. They were especially prominent during the United States housing bubble of the 2000s but have gained wider notoriety due to the subprime mortgage crisis in July/August 2007 as a prime example of poor lending practices[1]."

Warren Forex Aug 23, 2008 7:01pm | Post# 862

From USD/JPY An Important Post By Peter And I !!!

#23084 Aug 23, 2008 6:42pm (1 min ago)
Warren Forex
Member Since Sep 2006
Posts: 1,751

Understand Market Psychology And Reality ...


This recent correction saw the most dramatic change in sentiment that I have ever witnessed. But the head fake that caused the market to commit was in fact not worthy of a high school benchwarmer. With absolutely no significant developments that could explain either a top in the dollar, or a bottom in commodities, investors placed their faith in price moments alone. Once the numbers started to show some retrograde motion, everyone simply assumed that a real change had taken place, and the momentum buying and selling began. The rapid movement reveals how clueless participants in these trades had become. Even those fund managers that seem to understand the fundamentals were fooled by the sharp price movements and the rhetoric they spawned.

Lacking any real change in fundamentals, such abrupt changes in sentiment following extreme price swings are as bullish a sign as I have ever seen. There is absolutely no basis for a significant dollar rally, or further weakness in gold, oil, or other commodities.

The U.S. is the focal point of the world’s financial turmoil. We convinced creditors around the globe into loaning us trillions of dollars. Now that it’s becoming increasingly apparent we cannot pay the money back, Wall Street has concocted a scenario where our shell shocked creditors respond by loaning us even more. More alarming is that many brain dead investors see this as a likely development.

End Of Copy And Paste ...

In my 5 years in this amazing business I have NEVER experienced anything like has happened in the change of perception that saw the market see a return to a stronger US Dollar.

The above article pretty well confirms my view of what happened. I honestly did not understand why it happened at the time but it is now clear.

The writer of the article said in the first line of the snippet that I included here that he NEVER saw such a DRAMATIC change in sentiment ever.

I personally have no doubts that my own analysis of the fundamentals is correct. This ensures that my future FX trading will be successful since fundamentally I will not be head faked out of my views.

As a fundamental trader this is essential to winning in FX. I hope everyone reading this will have enough of an open mind to understand this.

It is the same as going to a horse race and knowing who the loser will be. Would you bet on the losing horse. Of course not so why bet on the US Dollar ? In case anyone thinks that these remarks are against anything they believe in it is only about the cold hard uncaring facts.

You either trade FX to win money or you are in the wrong business.

Gold WILL go up. That is a 100% surety. Oil will continue to hold over $100.00 and for the time being that is almost a surety. Those Trillions of US Dollars in losses have to be absorbed by someone. That is a 100% surety.

So who takes the losses guarantees the results. If as seems to be the case now with the FED effectively backing the losses with the acceptance of Congress then the LOSER is the US Dollar.

Why ? Understand what causes monetary INFLATION and you will see that is the TRUTH. There never has been a FIAT currency since the beginning of FIAT currencies that still exists today other than the current ones. The only 100% proven store of Wealth since the start of commerce in our World has been GOLD and Silver. Why will it change now ? It surely will not.

We are ALL living in extraordinary times. 25 Years ago none of us would have known each other like this. The INTERNET will go down in History 100 years from now as the one FORCE that changed the World. The Automobile and the Airplane and The Radio and Television all have one thing in common. They move people and information around HOWEVER they all have a form of CONTROL attached to it. If you are very poor you will not drive around or fly around much. Radio informs you but also can control you with misinformation. As for Newspapers and Television we ended UP with not only 9/11 but the most INSANE war ever in my personal opinion. I understand now why it had to happen but that is much too deep and off topic for Forex Factory.

The difference with the INTERNET is that SO FAR No Government in the World has figured out how to CONTROL it so the free exchange of information between normal intelligent individuals educates those that want to be educated. It also allows those that want to stay ignorant to waste the whole day chatting on MSN or Facebook or wherever they choose.

KNOWLEDGE IS POWER only if the KNOWLEDGE learned is applied.

I trade FX for the CHALLENGE of being the BEST there is. That is my NATURE and the Money that I make or lose is just keeping score on how I am doing.

5 Years of incredible energy and time spend and FX traded and Dollars Won and Dollars lost have not been in VAIN. I have paid my DUES and I still pay them everyday that I trade.

There is NO EASY way to succeed in FX or in Life because they are just ONE and the SAME.


Have A Great Saturday Evening if in North America and Good Morning in China and Japan. The Olympics are ending. September is arriving and the Closing Fireworks in China will be nothing compared to the Financial Fireworks probably starting in September right after Labor Day and the end of the Year when I turn 65 on December 31, 2008.

The MOST IMPORTANT Election that America has EVER had in my personal opinion is about to happen on the 2ND Tuesday in November 2008.

We are ALL part of History. Enjoy the Ride and Be A Winner !

G-D Bless All !

One Of My Favorite Video's on FX Trading !!!

Warren Forex Aug 24, 2008 2:52am | Post# 863

This Information Is Only For Intelligent Folks !!!


Banks are doing what they usually do. They are closing the barn door after the pigs have escaped. As their losses have crossed the $500 billion mark, it is getting tougher for them to convince more suckers to buy their stock. They have so much toxic waste “assets” on and off their books at inflated values that they can not or will not lend. The Federal Reserve reported that banks have tightened standards for all loans in record numbers. After giving loans to anyone with a pulse for the last five years, this information is refreshing. But based on the well qualified assessments of Bridgewater Associates and NYU economist Nouriel Roubini, there is still $1.0 to $1.5 trillion in losses to go. Bank lending to consumers will be subdued for years.


Justice2 Jan 23, 2011 3:47pm | Post# 864

I have returned!
My name is Justice and I have returned! On Aug.2008 Iposted on this thread. The reason for my post was explained.Out of curiosity I returned today I am posting again.
I am still friends with Bruce and I speak with him from time to time.
I understand Bruce is still banned,and it appears the thread that was started
is inactive. Iwas told by Bruce recently that one of the most respected posters here,Jacko was also banned misconduct.
It appears there still is no justice in AMERICA!

Justice2 Feb 7, 2011 9:41pm | Post# 865

My Name Is Ruby
I guess Bruce is finished here. He was banned again using Forexpro30 and recently Robert99. That is sad since he really was trying to help traders however I guess posters like Jacko were allowed to swindle posters however Bruce wasn't allowed to help people. Such is life. Good Bye.

CindyXXXX Feb 7, 2011 10:37pm | Post# 866

Scammer ALERT
I guess Bruce is finished here. He was banned again using Forexpro30 and recently Robert99. That is sad since he really was trying to help traders however I guess posters like Jacko were allowed to swindle posters however Bruce wasn't allowed to help people. Such is life. Good Bye.
Senior Member
Member # 16005

Member Rated:
posted February 07, 2011 09:32 PMFebruary 07, 2011 09:32 PM

quote:Originally posted by CuongVC:

quote:Originally posted by Diamond:
$330,190.33 US Dollars All Positions now Closed. Next Target $335,000 US Dollars

Where Are My Clients ... Are You Happy !!!

Hello Diamond,

My fake 10,000USD with MasterBruce Managed account went up to more than 11,200USD on Jan 13 then down to about 2,700 on Jan 24. Now it is about 3600USD.

Should I be happy?

You have my word I will refund all your losses.

The TRUTH is I lost interest before
Edward and I resolved our differences. I kept adding to my positions as EUR/USD went against me. Then Edward and Crux convinced to do the right thing and I started trading again on February 1, 2011. I GUARANTEE 100% that your account will move up and show a profit. I am going for 15% a month.

Take care and be well. I am focused now.


Fundamental Forex Trader

Place Your Funds - Thank You

Sorry but there's something that doesn't smell right here.

1) banned from FF for multiple user names
2) Managing other peoples funds and actively trying to get more people in
3) Guarantee to pay back losses? C'mon this line died with Jacko
4) his FF name is Robert but his Oanda name and "real name" is Bruce... Who is Robert then? His Gay lover?

Funny... Its always the nice guys

This guy has scam written all over it. I would also be so bold as to suggest you are he.. You have 5 posts and are use them all to try and rope people into "your friend Bruce" thing at Oanda. Can someone ban this guy before someone gets hurt?

BenjaminIs Sep 5, 2015 8:37am | Post# 867

I found this thread this morning. It has much information in it about forex. The G-20 says they will not have a currency war. So I guess the Federal Reserve will raise rates in September not !

GodfatherSam Nov 10, 2016 1:29am | Post# 868

Yeah...! All we need to have in Forex Trading is the knowledge. But with knowledge we also need skills and experience to become successful.

Butterscotch Nov 15, 2016 4:55am | Post# 869

Very old thread but with very useful information... True words "knowledge is power".. If a person has knowledge of his work then he can do anything with it...

PeterFXlover Nov 18, 2016 5:11am | Post# 870

I would like to advise traders not rely on forex robots. It would be surprising to know, that these unproven and untested products are extremely popular these days, generating great profits for their sellers, but not for the excited and hopeful buyers. These robots are made to enrich the creators not to make traders successful. So avoid being scammed.

Butterscotch Nov 18, 2016 10:30pm | Post# 871

Right robots are program and can not think like a human can. So depending on them for our money is not good idea. Rather then it, develop useful strategy which can earn money to us.

Tarfest Nov 21, 2016 2:31am | Post# 872

Forex is no business of luck. Simply give and take in that what you put translate into what you get out. This means that the amount (not only capital but largely knowledge as well) that you put in goes a long way in deciding your profits.

BenjaminIs Dec 6, 2016 12:32pm | Post# 873

Very old thread but with very useful information... True words "knowledge is power".. If a person has knowledge of his work then he can do anything with it...

10 Trading Rules for Successful Traders
1. Limit your losses.
2. Let your profits run.
3. Keep position sizes within reason.
4. Know your risk-reward ration.
5. Be adequately capitalised.
6. Dont fight the trend.
7. Never add to losing positions. Dont average out.
8. Know market expectations.
9. Learn from your mistakes keep a trading journal.
10. Have a maximum loss or retracement in profits.

BenjaminIs Dec 6, 2016 1:22pm | Post# 874

I bumped the thread to the top as I am using some information from this thread. In today's forex markets we need much more knowledge then ever before because just technical indicators puts traders at a disadvantage. Witness Brexit and November 8, 2016 US Election.

BenjaminIs Dec 6, 2016 1:25pm | Post# 875

I bumped the thread to the top as I am using some information from this thread. In today's forex markets we need much more knowledge then ever before because just technical indicators puts traders at a disadvantage. Witness Brexit and November 8, 2016 US Election.
December 6, 2016 1:25 PM



Butterscotch Dec 21, 2016 3:44am | Post# 876

I would like to advise traders not rely on forex robots. It would be surprising to know, that these unproven and untested products are extremely popular these days, generating great profits for their sellers, but not for the excited and hopeful buyers. These robots are made to enrich the creators not to make traders successful. So avoid being scammed.
As many traders know it very well that trading with robots are not going to help for long term than also they invest in EA for their work.

FXAficionada Jun 28, 2019 1:13pm | Post# 877

7 Surprising Things I Wish I Knew Before I Started Trading Forex

You’ve heard a lot of success stories over the years about traders and their ability to make money pretty much out of thin air by “only” placing the right bets on the markets. So you start looking into itarticles, blogs, forums, books, apps, gurus…and you quickly find yourself overwhelmed by the sheer amount ofoften conflictinginformation you can find online!
We’ve all been there.

But you still need to do your research and spend quite a lot of time learning about Forex before you start investing, as learning through experience is a tough b*tch when it comes to Forex trading!

The objective of this article is to hopefully take some months and a few rookie mistakes off your learning curve, and to give you some pointers concerning what to research and what knowledge you will need to develop to become successful.

So without further ado, here are 7 things I wish I knew before I started trading:

1. The single best time to trade forex is…a LIE.

Most resources will tell you that the best time to trade is during the London/New York overlap and other times of high market volatility.
If the answer was this simple… everyone would be doing it!

The truth is this approach is wrong for most traders. It ultimately depends on what kind of trading you are doing. Times of peak market volatility might be good for some strategies and not so good for others.

If you are a range trader, trading during lower volatility times instead of high volatility periods will increase your success rate, as range trading works best if a price is moving within relatively narrow ranges and is not breaking through the resistance or support levels. Also, you should avoid trading when economic data is coming out. The best time for range traders to trade is during the quieter Asian (Tokyo) session.

Breakout traders are the ones who can benefit from volatile markets, so the best time for breakout trading is during the famous London/New York overlap, and also during the opening hours of the London session.

News traders should obviously time their trades around news releases. The more volatile the news the better. Usually, the biggest moves are created when the US data comes out. Why? Because the US dollar plays a role in just under 90% of all forex transactions. The most volatile news report for the US is the NFP (Non-Farms Payroll). The NFP is usually released on the first Friday of every month at 8:30 AM New York time.

As you see, timing is everything in currency trading. To devise an effective and time-efficient investment strategy, it is important to understand how much liquidity there is around the clock to maximize the number of trading opportunities during a trader’s own market hours.

To track this easily, I recommend a free tool to see forex market trading hours at a glance and their respective volumes, adjusted automatically to your time zone.

This tool will also help you know when not to trade…

2. Avoid trading during the Witching Hour.

Traders always ask when is the best time for trading but often forget about the other end of the spectrum. A penny saved is a penny earned so it makes just as much sense to be curious about the best time…to refrain from trading! No?

Certain times can be especially challenging to make money in the forex market. These times include the days before, during and after a major international holiday, such as Christmas or New Year’s.

Major bank holidays in the United States, the UK or Europe can also adversely affect trading volumes, often leading to sharp moves in thin markets that can trigger Stop-Loss orders… but more about that later…

For most traders, the following are among the worst times to execute forex trades:

· The Witching Hour. The loneliest and scariest time in the forex market is when the sun is just rising in Tokyo and traders in Sydney are drinking their first cup of coffee. The time between the New York close and the start of trading in Tokyo has always been a time when investors avoid trading if possible. During these two hours, forex trading volumes can decrease to just 2% of peak turnover. Thus, liquidity is super low. Consequently, the spreads get very high and any transaction completed during that period can influence the market disproportionately. It is during this time that many stop-losses get triggered and flash crashes happen more frequently.

· Sunday Afternoon Opening. The market opening on Sunday often carries an element of surprise, especially if a major geopolitical event happened over the weekend. Forex currency pairs tend to gap up or down during the start of the Sydney session. Also, dealing spreads are typically so wide that you would usually be wise to wait at least until the Tokyo opening to get a better idea of what the market is like.

· Wednesday Rollover. In the middle of the week, there is a tricky rollover commission that surprises many novice traders. What is a rollover? If you hold a position open on a weekday night, normally your broker charges or credits interest to your account. This interest is called a “Rollover”.

But unexpected charges are not the only factor that you should watch out for. Indeed….

3. 77% of forex traders lose money.

You may have come across the popular estimate that 96% to 99% of traders lose money. While this can sound a bit extreme, this figure has been out there for many years without being substantiated by hard facts.

With the European regulations that came into effect from the 1st of August 2018, brokers are now required to communicate on their marketing messages what percentage of their clients are losing money.

This makes it easier to compare the performances of different CFD brokers.

It turns out that the losing account percentage varies from 66% to 90%. And the average percentage of losing accounts is actually 77%.
So this is one of the factors which will help you choose a broker. Whichever one you go with, beware… get plenty of experience through demo accounts and then start small until you are able to secure regular profits. A few tricks to get you started…

4. If the oil prices go down, so does CAD against JPY.

Canada is a major producer of oil, so the Canadian Dollar is affected by drops in energy costs. Japan, however, imports nearly all of the oil it consumes. This means lower oil prices boost the disposable income of the average Japanese household and help businesses increase their profits. From June 2008 to Feb 2009, the price of oil dropped by 70%. The Canadian Dollar lost 30% against the Japanese Yen during this time. Oil prices tend to be the leading indicator of CAD/JPY price action with a whopping 80% positive correlation between the two factors.

Another example of a positive correlation between a currency and a commodity is gold versus AUD. This means the value of these two instruments is generally moving in the same direction. This is due to the fact Australia is the 3rd largest producer of gold.

Many other correlations exist and can give great signs for trading ideas. Knowing these correlations will take you one step ahead of the masses and will give you the confidence to jump in the trade if the trend is strong.

However, this is not the only knowledge you need to be successful…

5. You can lose your money even if you win the majority of your trades.

If you are not disciplined and are prone to panic and rash decisions, then perhaps forex trading is not for you. If you are in it to make a quick effortless buck, then forex trading is definitely not for you.

In the beginning, most traders have a hard time controlling their emotions. Every loss is a chance for them to start doubting their judgment and strategy. They end up giving up what they had planned and jumping from one tactic to the next, without giving proper time for their strategy to bear fruit.

Forex market is a marathon, not a sprint.

The ugly truth is unless you have a lot of spare cash to riskand no, your entire life savings do not qualifythere is no way to win a lot of money on the market in a quick and safe way.

More generally, in trading, great profits don’t make a great trader. In fact, if you want to succeed in Forex trading, making a lot of money should not be your main focus!

Your (or anyone’s) percentage of winning trades (also known as win rate or win/loss ratio) is a deceptive indicator. You could be winning 5 USD on 10 trades and lose 2,000 USD on one, which would translate into a 91% win rate but a 1,950 USD overall loss! How could that be considered a positive result?

Rather, you should consider your wins against your losses, and focus on having your equity curve rise slowly but steadily over time. And yes, at first, it’s more about losing little when you’re wrong than about winning big when you’re right.

Now you ask “this all sounds logical and peachy but what does it mean in practice?”

Ever heard about Risk Management?

Risk management is the most important success factor for Forex trading… but also the least used! Many traders choose to overlook risk management because of the perception that the more risk you take, the more money you make. Well. This is a questionable consideration because it is short-sighted. The truth is, if you do not manage your risk, you will end up losing your money at some point.

The smart way to make money on any market is to accumulate rewards over time while controlling your risk.
How do you do this? Glad you asked.

Limit your exposure by trading small lots.
Don’t open a real account with a trusted broker and start trading big. Make a small deposit instead and start from there. To build it up, invest in knowledge. Develop chart analysis skills and learn how to trade based on your forex trading plan. If you managed to grow your account from 300$ to 500$ over 6 months, then you can start investing more.

Limit your exposure by diversifying your portfolio.
If you sell CAD/USD and then buy USD/EUR, you have technically bought USD twice, which means you are more exposed in case the USD plunges. Remember to diversify by buying and selling different pairs… whose movements are not correlated!

Limit the number of trades you place.
One or two trades a day is enough when you’re starting. Spend more time analyzing at the beginning and never enter trades you’re not sure about as it will be harder not to become emotional if they don’t turn out as you expected.

Limit the use of leverage.
Through the use of leverage, traders are able to invest a small amount of money and trade much larger deal sizes. While this is a wonderful tool to boost profits, if the trend moves against the investor, leverage magnifies losses the same way it would magnify returns. Indeed, using a 1:50 leverage means that a 2% adverse move could wipe out all your equity or margin. Any trader should be aware of this risk whenever thinking about using leverage.

Limit your losses by using stop-loss orders.
Do it every time you open a position. The last resistance line is a good stop level when you’re selling, or the last support line when you’re buying. But it doesn’t end there. Stops can be used not just to ensure that losses are capped, but also to protect profits. To benefit from this double-protection, you will need to adjust/tighten the level of your stop-loss using trailing stops whenever the price moves in your favor.
Beware though…

6. Big news events will get you…And wipe out your trade!

Volatility jumps before important announcements and the drastic movements can hit the
stop-losses, resulting in lost trade and investment.

When you use stops for exits, keep your levels in mind as you will have to widen them just before news announcements. In cases where you cannot manage your stops tightly around news announcements, the best bet is to leave your stops wider over those periods.

If you are trading on lower timeframes, widening your stops could substantially increase your risk. In such cases, you may decide to close the position before the announcement as even if the announcement is in your favor, the price generally whips up and down at least a few pips before taking direction.

If your stop is anywhere near the price just before the news, chances are you will be taken out no matter what the result. Just be aware of relevant announcement schedules and factor these in when deciding whether or not to take a trade.

In order to avoid panicking when some losses occur you need to realize that…

7. Quitting your job for forex trading might not be the best idea.

Ever heard the saying “Don’t put all of your eggs in one basket”? I’m sure you get the drift… but keep reading anyway

Ever dreamt of working from a hammock under a coconut tree while sipping margaritas, whiskey sours or whatever your favorite poison is? We all have.
I’m not saying it’s impossible.

I’m just saying this reality will not be picture-perfect (at least for long) if trading is your only source of income.

I met a trader in French Polynesia back in 2017 whose income stemmed from his trading activities. Granted he was working from paradise, but his daily stress was palpable. Why? Because he NEEDED it to work out. When trading is no longer an optional source of revenue, it becomes a lot harder to keep emotions at bay and reach the calm mindset needed to win on markets over the long-run.

So don’t go and quit your day job just yetas it ensures your bills are paid at the end of the monthuntil you’ve managed to find or develop an alternative regular source of income, other than Forex trading of course.

- - - -

These were the 7 things I wish I knew before I started trading forex. They could potentially save you thousands of dollars and countless hours of precious time! So, if you’re new to forex trading or know someone who is, don’t hesitate to share these tips with them!

Andrewbrown Sep 12, 2019 2:05am | Post# 878

Thanks for all that information, just started viewing the thread ad found it really very useful. Looking forward to gain more knowledge with everyone here.

maiying Sep 12, 2019 4:58pm | Post# 879

I'm from China and I can't speak English at all. How to learn foreign exchange trading? I'm using translation software.

dextormason Oct 23, 2019 2:33am | Post# 880

Yes, 100% true... Knowledge is Power. We all know knowledge is the best way to educate yourself about every aspect of life. Getting knowledge is basic right of every living person specially human. With the help of useful knowledge we can differentiate between right and wrong. It also beneficial for all those who want to improve his life as well as overcome his own weakness. Moreover, knowledge makes us powerful because it tell us some moral and mental strength. In short, education or knowledge is best way which leads toward success.

© Forex Factory