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Myths and Legends

  • #121
  • Feb 6, 2013 4:51pm Feb 6, 2013 4:51pm
Quoting Mingary
Only 6 have succeeded
IMO only 5 have succeeded. I found Oprah's show so boring that I switched to forex.
  • #122
  • Feb 7, 2013 2:10am Feb 7, 2013 2:10am
Lemme add another one which i strongly believe out of 100 in FF, 99 will say I am wrong.

the myth is "forex market is a supply-demand game"... true or false?

let's hear some thoughts and brilliant views here
I am bored..
  • #123
  • Feb 7, 2013 2:22am Feb 7, 2013 2:22am
Quoting G33maroon
Lemme add another one which i strongly believe out of 100 in FF, 99 will say I am wrong.

the myth is "forex market is a supply-demand game"... true or false?

let's hear some thoughts and brilliant views here
True - price/value is determined by supply-demand.

I think what you are trying to get at is whether S-D is manipulated. Regardless, overall S-D does determine price.
  • #124
  • Feb 7, 2013 2:26am Feb 7, 2013 2:26am
Quoting G33maroon
Lemme add another one which i strongly believe out of 100 in FF, 99 will say I am wrong.

the myth is "forex market is a supply-demand game"... true or false?

let's hear some thoughts and brilliant views here
If 99% of rational people disagreed with me, I'd likely be persuaded to reconsider my view.

I've read that the forex markets are driven by many diverse factors (e.g. orderflow, sentiment, macroeconmics, supply and demand, central bank policy and intervention, news outcomes, self-fulfilling prophecy, the need to maintain triangular equilibrium, heavyweights' search for liquidity, trapped traders, the performance of other markets, ....... and probably many others that I'm unaware of).

Hence I'd say your assertion is neither completely true nor completely false.

[EDIT] Just to clarify: in the sense that price necessarily stops rising where demand is overwhelmed by an excess of supply, and vice versa, then yes, it's about supply and demand. But the other factors I listed nonetheless play their part in causing price to move.
  • #125
  • Feb 7, 2013 9:26pm Feb 7, 2013 9:26pm
Quoting hanover
If 99% of rational people disagreed with me, I'd likely be persuaded to reconsider my view.

I've read that the forex markets are driven by many diverse factors (e.g. orderflow, sentiment, macroeconmics, supply and demand, central bank policy and intervention, news outcomes, self-fulfilling prophecy, the need to maintain triangular equilibrium, heavyweights' search for liquidity, trapped traders, the performance of other markets, ....... and probably many others that I'm unaware of).

Hence I'd say your assertion is neither completely...
its good to see how you have put your view in a very careful manner. well written.

I believe that from time to time, given the fact that most people lose may support one need to be contrary on some issues..perhaps most conventional wisdom written to date is wrong?

Looking at the euro market now (it happens from time to time) remind me of a technical analysis journal written almost 30 years ago on contrary opinion and the markets (on future market to be precise but i think it may applies to all other market as well). The findings, among others, price moves may not and often do not have any relation to the real world fundamentals and the side (bull or bear) with the most money always win.

So if you take the euro market now as an example, if its really all about supply and demand, when astute traders or even hedgers recognize that price goes out of line with the real world, why wont they step in and bring it back to balance?


This is one of the reasons why I am adding another myth to this thread.
I am bored..
  • #126
  • Feb 17, 2013 9:35am Feb 17, 2013 9:35am
ok guys maybe not motivation but i thought i would post about my experience.

the last 2 weeks in forex i have suffered my greatest losses (just as i add funds to my account which played a part aswell). the main problem was overconfidence. I was making plenty of pips prior to the losses and thought I couldnt lose. I believe every trader will go through this at some point.
I was looking at the chart and taking a trade based on where i thought the market would go and not sticking to my strategy. the first few trades were successful which didnt help. I ended up not setting stop losses due to the fact that i was convinced it would go my way. Opening up my platform and trying to trade whatever candle was infront of me which when i look back was such a foolish thing to do.
I hope this part is behind me, ofcourse i will stll have losing trades but im hoping i will be back to being consistant.

I had an epiphany while i was watching the football (soccer) I noticed that every player has their own special roles whether it be defending passing or scoring. this made me think that the defender knows that they are not as good at scoring goals than they are at defending them. some players are good at free kicks and others arent. I know certain players can play several positions but their talent n a certain role is what sets the great apart from the average

This made me think about forex and my strategy. (i have based my strategy around arjuns thread). I know that i am good at trading the bounce off of the 10 ema on several TFs, i have got good at juding entries and exits. I am not good at trading when the trend has already taken off while others might be.

so why am i (a defender) trying to trade when price has already taken off (scoring goals) when i know i am better suited to trading the bounces (tackling players)

Might sound a bit silly but with this outlook i believe it will help me be disciplined and wait for my setups that can make plenty of pips. I would rather master a certain price movement that occurs several times daily rather than be ok at the entire forex price movement.
ofcourse i will still try to expand my knowledge of forex and the financial markets as i am not a close minded person and find it very interesting.
  • #127
  • Mar 9, 2013 10:37am Mar 9, 2013 10:37am
another great thread! Thank you X-man for everything you have done on this forum. Loved all your posts!

Awsome inspirational video for you guys:
http://www.youtube.com/watch?v=qX9FSZJu448
  • #128
  • Mar 9, 2013 12:48pm Mar 9, 2013 12:48pm
Quoting X-Man
I wonder what happened there.
Maybe Greed? maybe another experiment?

I also heard that the method he traded is freely available on the net.
could that be the case of it not working and losing money?

Do you think the ones that make it big keep their valuable top secret system a secret?
What happened was that they had a temporary quirk in the markets. A gimmick through which they were lucky. Like most people here they ran a "system" which had rules that had to be followed. Eventually the market macrostructure shifted and that system no longer became profitable. I really hate systems personally and believe that any methodology you use has to be able to either adapt to changing conditions or be so focused on the microstructure of how the market works that those elements will never change.
  • #129
  • Mar 9, 2013 1:17pm Mar 9, 2013 1:17pm
Quoting Kanzler
........any methodology you use has to be able to either adapt to changing conditions or be so focused on the microstructure of how the market works that those elements will never change.
Agree totally.

Dennis' Turtles used a trend following system. As with all trend following systems, they prosper in trending conditions, and fail when market behavior is either ranging or indeterminate. But I guess that's just stating the obvious.
  • #130
  • Mar 9, 2013 1:29pm Mar 9, 2013 1:29pm
Quoting hanover
Agree totally.

Dennis' Turtles used a trend following system. As with all trend following systems, they prosper in trending conditions, and fail when market behavior is either ranging or indeterminate. But I guess that's just stating the obvious.
Sometimes stating the obvious can be helpful. One thing I've found fundamentally flawed with trend following systems is that "trends" are completely arbitrary structures and depend entirely on how someone defines them, much like many other widely accepted ideas in trading. Furthermore, no matter how you define them, finding the start and end of a trend is impossible without the benefit of significant hindsight to the point that once you realize it's over you've already lost most if not everything you gained from your system.

Now I don't say that a trend bias can't be a way to improve odds in trading, but I strongly feel that trying to exploit the trend itself as the 'edge' is a futile task that many fall for. Personally I am grateful that I am learning to trade at a time when the mirage of such easy money is not there to fool me.
  • #131
  • Mar 16, 2013 3:00pm Mar 16, 2013 3:00pm
I have to support the technical side of trading. Every time I "understand" the fundamentals and the financial indicators, I bias my trading decisions against what I see on the charts. Guess what - for me, and I'll stress that point, for me, it rarely works.

If I can understand how a particular chart reacts to dynamic support & resistance levels with the moving averages, together with previous significant s/r levels and the current support and demand zones, as well as current candle patterns, then I have much more success.

Yes the fundamentals drive the market, but only after the numbers are released and market settles on which direction it wants to go.

How many times do see a news event release figures that are supposedly good and are what the analysts wanted to see, only for the chart to go in the opposite direction. Often, the analysts and market drivers have already discounted the news event into the current price - sell on news / buy on rumour, depending on where PA is being driven.!

So, for me, I will continue to back test charts and build the statistical information that I need so that I can trade on what I can see and base my decisions off of the risk analysis and possibly risk/rewards and manage the trades accordingly.

Happy pip hunting.
"To live with Passion, it takes Courage and Grace to survive"
  • #132
  • Aug 22, 2013 4:03pm Aug 22, 2013 4:03pm
Quoting X-Man
Top 10 Myths About Forex Forex is a market where exchange of one currency with another currency takes place. It’s the market which provides accessibility and liquidity to the traders to buy and sell one foreign currency in exchange of another. Forex traders seek profit in buying currencies low and selling them high. This kind of trading became more popular with the widespread of the on-line Forex brokers. There is a lot of information available about Forex on the web. However there...

Eexcellent...
If opportunity doesn't knock, build a door...
  • #133
  • May 27, 2015 9:58am May 27, 2015 9:58am
hi there guys

anyone knows if trading secrets exists?
firstly what is a trading secret?
there is no such thing
there is no secret code.
but when you spend hours upon hours with charts then you see something that happens all the time.
that becomes your secret. that makes the account grow

when i say spend hours upon hours with charts this means looking at charts with purpose and not going indicator crazy.
that means looking at charts with a few indies thats all and from there dont add anything.
from this we can tell that we need a few reliable indies.
maybe few MAs and 1 or 2 oscilator.

there are many systems here that are reliable and some of them look different but give you more or less the same entries around the same areas.
After you find one you stick with it.
dont deviate look and look until you SEE.
its right there infront of our eyes.
you will only see around 2 to 3 years of experience.


Dont get me wrong before that you will make pips if you want but you wont SEE
thats why some traders say spend 10 000 hours of chart time.
this is the trick.
sometimes the person who SEEs can even explain it to the noob and still the noob wont understand .
its up to the noob to the work.
the person who SEEs can just help the noob get there easier and nothing else.
X-man the legendary conqueror of markets
  • #134
  • May 27, 2015 10:00am May 27, 2015 10:00am
sometimes i just feel like blabbering
who knows i might open a journal to keep track f all my charts.
wont that be a treat LOL
X-man the legendary conqueror of markets
  • #135
  • Last Post: Jul 21, 2015 12:18pm Jul 21, 2015 12:18pm
Bump for a great thread . . . !

Best,
N

PS A trading journal with all your charts sounds amazing . . .
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