Hi behof and others on this particular thread.
I dont often comment on FF pages, well havent for a while.
But just to let you know, i did once work at an investment bank, and I know how the system works, and Behof, as much as you tried to make sense of it, and you were close to the mark, it simply doesnt work that way.
Go to my thread i posted on market makers - which gives you an insight on how investment banks work
http://www.forexfactory.com/showthread.php?t=5809
But could i firstly say. And this is something that needs to be corrected, cause its giving false information to hopeful traders out there. The stat is actually thi.s.
95% of all traders fail within the first 6 months of trading.
NOT
95% of all traders lose, fail or are unprofitable all the time.
I for one can say that im a relatively successful trader - not hugley successful, but im slowly working my accounts to a point that im happy with. I trade from home, and I know many more who are the same. It is possible, it comes down to you as an individual and your experience behind the screens. Same with any other occupation.
Apprentices are apprentices for 4-5 years for a reason. To learn the trade. I think if you were a full time trader, it would take between 3-5 years to become totally proficient. Some more, some less.
Investment Banks as a single entity cannot move the fx markets alone. On stocks its a little different. But with fx volume and sheer size, there is no one major banking institution in the world that can move any of the MAJOR PAIRS, by themselves. some of the smaller pairs, maybe, but it is out of question to consider it a reality on the majors.
If they did, it would need to be a collective effort. Banks in the past have been known to move price action, but usually there is a collective amount of funds behind such moves. The real institutions with the most damage potential are major Central banks. The major central banks in the world that have potential for damage are - the fed, the ECB, the Bank of Eng, the Reserve Bank of Australia, and the Bank of Japan. There are some others, but generally these central banks are behind to moves on the majors.
Investment bank traders, do use, technical and fundamental analysis. When i was working on the desk, we did use these tools. We also did have collective information on who was buying what, and when - in terms of our own client base. Which is also helpful.
However, the FX market itself, on a MAJOR PAIR, is too large to be dominated by one single bank.
This is the simple reason why i myself decide to trade in this particular market.
Now - systems work. A system that is very similar to my own, is the 4 hour MACD system that Phillip Nel have very respectfully taught dozens of traders to trade on his thread here on FF. I admire the mans work, cause trading full time, is somedays a 14-16 hour job, and to have time to trade and to teach is remarkable - and is definately a thread worth visiting.
Keep your systems simple, keep your trades simple, and you can be successful in the market.
It isnt impossible, but I think the best advice that can be given, and what was given to me when i first started was. Be realistic. Be realistic with how much you need to lose before you begin to learn, and become profitable, be realistic with your lifestyle and if you can fit trading in.
Trading for a living is a total lifestyle shift. Your life revolves around markets - and at the end of the day, you just need to be passionate about trading itself to get anywhere. Not the money that you will make, but trading itself. You gotta love the dynamics involved and the game that it is.
Money is a bi-product of success. Success is achieved through your passion for each and every single trade you place in the market.
And not only that, the most successful traders out there are always by the markets side....they are following the market 24 hours, through their own lives - through marriage breakups, bringing up their kids, doing their hobbies. etc.
If you truley want to be trading for a living, you need to be prepared to sacrifice and this is what you need to do.
People who trade large time frames, and trade 2-3 hours a day, are either building themselves up so they can become full time trades, doing it for a second income or have a lot of money to play with that their returns will be substantial anyway.
But for someone to be a successful, passionate trader. You need to give it 100%.
If your just in it for the money, and always concentrate on your account total at the end of the day.....forget it. Thats not what tradings all about.
It is possible. Its going to hurt, your going to wish you never took up trading in the first place sometimes, and sometimes your going to be on cloud 9.
Probably why i love it so much. Its just a massive game!
Happy trading, i hope what ive written really hits home - cause i do honestly not enjoy others placing a false reality in what people can really achieve in this game.
cheers
Rusty
