Well,
Not sure if this is right thread but it is about EURUSD
Take a look a my regular 4H EURUSD chart from a Market Maker broker on MT4 platform.
And take a look on my other account on true ECN broker via ProTrader platform.4H EURUSD also.
See the difference? See the stop loss hunt?
In my experience. mOst retail FX traders seem to have a decent system or genuine "feel" for the market, yet more often than not they still find themselves posting steady losses. They see the possibility for greatness. yet they are unable to grasp it. Something must be missing ... but what? Although they may spend hours dutifully studying technical analysis, candle charting, and the history of the market, seldom do they take a moment to concentrate on their number one killer: the forex dealer. By preying on the small speculator, these shadowy characters are often single-handedly responsible for turning winning trades into losers.
Both casinos and FX brokers have an ace up their sleeve which ensures that the odds are always shifted aggressively against a player, and not surprisingly these villains share a common name. Dealers are much more than simple order-processors (do you want to buy/sell. hit/stay?); they are in fact the house's fail-safe device sent out to take down any player who is deemed to be winning "too much". Their direct and purposerul interference can ruin even the most advanced or elegant trading system.
Have you ever had your stop hit at a price that turned out to be the lowlhigh for the day?! Bad luck perhaps? Maybe. What if it happens more than once? Do you ever feel like the market is "out to get you?' Well , guess what ... in this zero-sum game it absolutely is.
Dealers make particularly tough opponents for traders because they act on better information. Although it is hard to bluff when the other party knows your cards, you can however profit by betting on their actions. and a dealer's actions are, after all, very predictable. You know what they want (your money) and you have a rough idea of how they will come after it (running stops, shading prices. fading moves, etc.): all that you now need is a way to exploit these actions. Throughout this book you will find information meant to help you identify and counteract typical dealer traps, which if implemented correctly can instantly improve your trading profits.
Many of these are exactly the same techniques used by hedge funds and eTAs to exploit loopholes left by their dealers. which can also be used successfully by the retail trader.
Make no mistake about it. There is a lot of money 10 be made in currency trading; you just have to know where to look. Sidestepping dealer traps is one simple way of improving your daily P/L, but it is surely not the only one. Successful trading comes down to taking care of the details, and for me the only way to do this is by
providing concrete, up-to-date real-life examples, and sharing the FX trading tips that have proved so profitable over the years.
In the end, it is my hope that by stripping away the theory and getting down to the core of trading you too may find yourself well on your way to beating the forex dealer!
