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Trade Like Institutions and Banks Do

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  • First Post: Edited May 10, 2017 9:53am May 19, 2016 8:21am | Edited May 10, 2017 9:53am

On this thread i will post my trade ideas Analysis and Forecasts, that doesn't mean these are Investment Advises.

Just showing my little part of Work, May be it would be beneficial for someone who need this type of Stuff.



In this thread you will learn how to trade like professionals and institution are does, I will mention mistakes that every new trader does that prevent them make consistent profit and I will tell you how to avoid those mistakes. This thread provides information that every new trader need before start trading in forex market, and prevent mistake like lose hard earn money in few days after start trading.
In this thread I will discuss each and everything which make you Successful trader, and you are free to ask every question which make you crazy and fearful dont be shy or you message me.

Who are Targeted Audience:
Want to learn Forex trading
Want to recover capital
Frustrated and tired of losing hard earned money
Want to consistent profit maker
want to learn technical analysis
want to learn fundamental analysis
Want to be successful trader
Want to make Successful career in Forex Market


Requirements:
Keep an open mind
Don't be shy
Nothing is Perfect... Every Body is Right...
Starting Steps:

Use Dummy at least a year:
Many People start trading with dummy they use for 1 month than they think they are now able to trade and they will make profit they now professional. This is disaster you need use dummy at least 1 year it is very important; after one year you are able to know how many event occurs in the year and how important they are how they impact on market.
Forex Market Open 24 hours, many say than I don’t mean it is active 24 hours. but in reality it is active 24 hours depend on pair there are different pair with different time all pair are active with different time. Every hour at least 3 pair are active, you just need to find which.

Learn Daily, Read Daily:
You need to read daily about Forex there are many sources available on internet and even many best books are available which are beautifully written of forex. Talk with traders take suggestion from them.

Start Trading At least $10 k:
Many peoples ask how much capital needed to start trading, the answer depend upon your situation how much you want to earn. In forex you are able to earn 5% - 10% weekly means monthly 20% - 40%. You invest $10 k you will earn on it monthly $2000 - $4000. If you want more invest more.

Be realistic, objective see fact and figures:
Be realistic mean don’t live in fantasy like you take a position on EURUSD and expecting you will earn 300 pip a day this is foolish thing you must see the average pip of EURUSD pair a day.
Trade with objective you need to know why you are taking the position why you think the pair price go in your direction based on fact and figures.



This Article is very less knowledge I will update day by day. When I have time.
Nothing is Perfect... Every Body is Right...
Questions for learning purpose

If you have and question you just ask related Forex market, I will definitely answer as soon as possible.
You all are here to learning purpose and I don’t know what you want learn when you will ask question I will analyses your level then I will give you information that you want.
And also
Share your knowledge
Discuss here your trade
discuss your analysis
Discuss in which part you are weak and strong.

I am asking question, answer what you know?
Why banks, hedge funds and many other institutions are always making profits.
Nothing is Perfect... Every Body is Right...
Hi Genierex!

Because they can Manipulate/change/turn the market according
To need. They are MARKET MAKERS. They have Millions of
Dollar to Buy/Sell.

Regards,
loveandpeace
Quoting loveandpeace
Hi Genierex! Because they can Manipulate/change/turn the market according To need. They are MARKET MAKERS. They have Millions of Dollar to Buy/Sell. Regards, loveandpeace
Hi,

Are you 100% sure to this answer? Sure again.
Nothing is Perfect... Every Body is Right...
Quoting loveandpeace
Hi Genierex! Because they can Manipulate/change/turn the market according To need. They are MARKET MAKERS. They have Millions of Dollar to Buy/Sell. Regards, loveandpeace

Your answer is right, but If my question is about stocks. In stocks they can manipulate, change, and turn the market according to need but not every time.

But in Forex Market this is not happen that’s why I like Forex, In Forex It is very difficult to manipulate, change according to their need, it means like change Country Economy and policy which is not very easy it is not simple as you think and I.
I give you an Example of hedge fund:
Most prestigious hedge funds in the world, whose partners included several Nobel Prize winners. In 1998, LTCM went bankrupt, nearly bringing the global financial markets to its knees when a series of complicated interest rate plays generated billions of dollars’ worth of losses in a matter of days.

See I hedge fund and other Institution play the market than hedge fund and bank never bankrupt.
Nothing is Perfect... Every Body is Right...
They do not manipulate the markets but with there bankroll they can encourage the retail trader to buy or sell at the most improper time by affecting the supply and demand of the currency pair.

Robert
Just wish I could code
Quoting Robert52
They do not manipulate the markets but with there bankroll they can encourage the retail trader to buy or sell at the most improper time by affecting the supply and demand of the currency pair. Robert
Yes it is right.
Nothing is Perfect... Every Body is Right...
Quoting genierex
...... Why banks, hedge funds and many other institutions are always making profits.
This is not entirely true!

First of all, trading is risky for all market participants, so no matter now big your capital, you can lose it all in one position. (when using high leverage, or during market crash like CHF crash for example).

Now, from all market paritcipants, the market maker is in the best position 99,9% of the time. For the market maker there's almost no risk because of the positive expectany per trade on EVERY deal, because the MM is liquidity provider, and he is quoting the Bid/Ask and collecting the spread on every trade. The MM buys bid and sells Ask, and for him the total amount of accumulated profits in the form of spread is always larger then the total amount lost by price fluctuations.

All the other market participants who are not MM, but are speculators and investors, are generaly exposed to the same type of risk as the retail trader. There is no difference between 1K or 1 mil. or 100 mil. capital when it comes to risk.

All speculators lose money from time to time(or most of the time), and there is no major difference between big institutional traders and the small individual traders like us. The success rates are almost the same. (over 90% lose money long term).
The majority of the lost capital goes in the pockets of the market makers(spread) and the brokers (commisions). The rest (the smaller part) goes to the top 3-5% profitable traders who capture price fluctuations, and collect positive swaps and potentially do arbitrage but the last one no longer works in fx.

There is this myth that the institutional traders are better and more profitable than individual traders.
In reality it is the opposite. All of the best traders in the world are individuals who trade for themselfs of manage some private capital for investors.
The traders who work for institutions are mediocre at best.
Quoting Robert52
They do not manipulate the markets but with there bankroll they can encourage the retail trader to buy or sell at the most improper time by affecting the supply and demand of the currency pair. Robert
Cut your looser short then the profit u take.....
Trade fearless not careless...
Easy Return This Year: na
Quoting genierex
{quote} Yes it is right.
Hi Gen,

I am in, please do share how we can trade and make profits of 20% pm that would be awesome! im all ears, ive been trading 6 years, not much to show for it, make money then lose it. I use martingale most of the time. My losses are usually from emotional rogue trading. Looking forward to your insight, will you post trades, strategies?
Quoting alphaomega
{quote} This is not entirely true! First of all, trading is risky for all market participants, so no matter now big your capital, you can lose it all in one position. (when using high leverage, or during market crash like CHF crash for example). Now, from all market paritcipants, the market maker is in the best position 99,9% of the time. For the market maker there's almost no risk because of the positive expectany per trade on EVERY deal, because the MM is liquidity provider, and he is quoting the Bid/Ask and collecting the spread on every trade....
Hi,

I know this thing. but the purpose of this thread to make best trader like you said in your last line. I appreciate you define so well and utilize your energy. I appreciate more and more and if you give tips and knowledge about trading style to member and who which are new in trading.
You have good knowledge it seems from your post, why not you share knowledge to others to make them consistent profit maker.
Nothing is Perfect... Every Body is Right...
Quoting Jay-bakgat
{quote} Hi Gen, I am in, please do share how we can trade and make profits of 20% pm that would be awesome! im all ears, ive been trading 6 years, not much to show for it, make money then lose it. I use martingale most of the time. My losses are usually from emotional rogue trading. Looking forward to your insight, will you post trades, strategies?


Hi,
Thanks for asking!
I am amazed that you are trading form 6 years and asking this type of question, how it is possible dear. OK first of tell me each and every thing related to trading like what is your trading strategy how much your account size and how much you invest on one position or per trade what is your take profit and stop loss etc., or Msg me If you have problem to talking in public.
Nothing is Perfect... Every Body is Right...

My trading Style:

I always trade on the basis of Fundamental Analysis and Technical Analysis I combine both analyses than I enter in the market, I do not take position daily some time I am busy sometime my analysis not allowed to me to take position.
Before I take position I read important reports and article related to my pair which is easily available on cnbc, reuter and Bloomberg. You don’t need to pay for it.
Than I do technical analysis on charts, I use 5 min – 1-week chart depend upon how much time I hold position.
Today’s Example I very busy in useless things:
So I just earned 23 pips on EURUSD.
Nothing is Perfect... Every Body is Right...
Quoting genierex
My trading Style: I always trade on the basis of Fundamental Analysis and Technical Analysis I combine both analyses than I enter in the market, I do not take position daily some time I am busy sometime my analysis not allowed to me to take position. Before I take position I read important reports and article related to my pair which is easily available on cnbc, reuter and Bloomberg. You dont need to pay for it. Than I do technical analysis on charts, I use 5 min 1-week chart depend upon how much time I hold position. Todays Example I very busy...

Can you please explain your process of "Fundamental Analysis" ?
Quoting allisonmagic
{quote} Can you please explain your process of "Fundamental Analysis" ?
I will Explain in detail, But first you define what do you think about fundamental analysis and explain it, if you use fundamental analysis how use how you fundamentally analyze currency what areas you cover when doing fundamental Analysis.
Nothing is Perfect... Every Body is Right...
Quoting genierex
{quote}what is your trading strategy how much your account size and how much you invest on one position or per trade what is your take profit and stop loss etc., .
Several years trading, i have every strategy known to man. The thing is they all do the same thing entries vary, as do other parameters. As i mentioned the losses are either born out of frustration or greed. However also due to my system which is born out of martingale, this requires an increase of trade size to recover previous loss. I used to have to swap 5 or so times, so first loss 100, then 200 then 400 then 800 and so on, in the hope that the next trade recovers all that and some. My strategy is not important, its all about consistency.. one can trade for a year solidly and then start a series of irresponsible trades and wham, all gone. Ive bounced back so many times i should change my name to Ali or Tyson. I use atr to gain stop loss and targets. So now you know, whats your secret which you have us all here patiently waiting for. By your recent post, when you combine fundamentals and technicals this becomes personalized, i may not interpret the fundamentals the same as you. This is why we use technical trading to take out the human element, but again im here to learn, thanks for thread
"Use Dummy at least a year:" - knew someone who traded like this, bad habits die last they say, so true, he couldn't make a dime in real account. No sense of risk, clicks on every move, total loss. Mind can be tricky, it tends to make it's own patterns.
"Learn Daily, Read Daily:" agree.
"Start Trading At least $10 k:" - i'd say fund your account with what you are willing to loose, 100$ is enough, trade minimal spread with lowest possible leverage, see how fast you get a call from Margin. Fund your account as you wish when you feel the rhythm of the market, all its undercurrents and moods.
"Be realistic, objective see fact and figures": 100% true.

Yeah, fundies and macros would be nice to hear. What they (IT's) looking at?
Quoting Jay-bakgat
{quote} Several years trading, i have every strategy known to man. The thing is they all do the same thing entries vary, as do other parameters. As i mentioned the losses are either born out of frustration or greed. However also due to my system which is born out of martingale, this requires an increase of trade size to recover previous loss. I used to have to swap 5 or so times, so first loss 100, then 200 then 400 then 800 and so on, in the hope that the next trade recovers all that and some. My strategy is not important, its all about consistency.....


From your post I feel you are full of tension, you said (I may not interpret the fundamental the same as you) Fundamental Analysis is very simple but people make It very confusing and complex. Sometime even I depressed that I don’t know about Fundamental Analysis this happens to every person who are doing trading even in every profession.
I will tell you about people psychology: Fundamental Analysis need hard work and people are very lazy to do it, but technical Analysis Is very easy just go on chart make some line apply indicators ta da done, but fundamentals need some work like you need to read newspaper, articles and reports.

Like I said I combine Fundamental and Technical Analysis.
I use fundamental Analysis to predict future price and Technical Analysis to know when to enter in trade and when to exist trade. Simple
Now you will ask how you do Fundamental Analysis simple: Example you trade on pair like EURUSD compare each and every thing Interest Rate, Inflation, Unemployment Rate and current situation what central bank are doing of each country. I will go in more detail but please be patient I will
Make I simple:
Technical Analysis we predict the price by looking historical price movement
Fundamental Analysis we predict future direction by watch and measure current situation.
Nothing is Perfect... Every Body is Right...
  • Post #20
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  • Edited at 6:36pm May 19, 2016 6:25pm | Edited at 6:36pm
Quoting genierex
{quote} I will Explain in detail, But first you define what do you think about fundamental analysis and explain it, if you use fundamental analysis how use how you fundamentally analyze currency what areas you cover when doing fundamental Analysis.

Well i guess that depends on what i'm trading. If i ever use fundamentals (i don't use it) and i'm looking for a USD trade for instance, I would first go look at the ISM. This is the insitute for supply management.

This source gives you the exact bias for the US markets as well as reports from the leading manufacturing corporation's executives. This data usually gives you in advance about 12 months notification that the US market will be growing or declining.

This is a leading indicator so it's the first thing i look at. I also have a look at the GDP data, which is a lagging indicator to confirm or deny the ISM data. Manufacturing, retail sales, incomes, new housing loans, and gdp. In that order. This gives me a general bias of the US market.

This strategy is micro and macro.

I personally don't use it, but if i did it would be for investments in stocks, bonds, futures, etc.. Now explain your process please.
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