Trading's Biggest Rort

Have you ever wondered why you just cant get it all together, you think you have just about got it right and BAM market conditions change and your left with empty pockets AGAIN !!!!!

Why is this FX game so damn hard to master?

Many reasons.

But i'll outline just 2 main ones, others will no doubt come up with some more.

Picture this, we've all been there, you hear about this forex thing through social media or maybe some junk emails or even advertising on tv, all giving the impression that trading forex is the road to riches and financial freedom [ sound familiar?} and its made to sound all so easy..........10 m a day , set your trades and then go down to the beach, sounds like the perfect life doesn't it ? And the hype works, retail Fx is the fastest growing sector in the finance world.

But if its so good and easy why do nearly all people loose money even after years of trying?

I'LL TELL YOU.

Whats the first thing you see on a chart from a system that you have bought or any one of the literally 1,000's of trading systems available on sites like Forex Factory , Baby Pips and others?

IT'S INDICATORS

They all have indicators plastered on or below the charts. So naturally newbies are given the impression right from the get go that the only way to succeed in trading is to smother their charts in indicators.
Sorry guys but this is one of RORTS in forex, the chances of you succeeding long term in this games using indicators is so small its not even worth trying.

FOR EXAMPLE, how many times have you seen this scenario : Go to Trading Systems in FF, pick a system { there's lots of them } one that's say 20 pages or more long, open up the first page and you inevitably find the poster telling you a little about them selves, all the hardships they've been through to get here but they have finally found the system that's made them profitable and they want to share the joy. Now there's a 99% chance his successful system will have indicators on it, whether it be just a couple of moving averages or a full blown Christmas tree type setup, either way it looks good and he sounds convincing. Read on a few pages and you will no notice that it isn't quite producing the results that everyone had hoped , so someone chimes in and suggests that if we just add this indicator or that indicator as a filter it might improve the results, sound familiar?

Now go to the last page of the thread, chances are that it is now dead or if it is still going it bears no resemblance to the original method. WHY? Because people are under the illusion that indicators are the be all and end all of trading and that they are the only thing that will make you successful. It is an ILLUSION and you have been conned.

I will tell you one thing that will shock most people, SUCCESSFUL TRADING IS ACTUALLY EASY , YES that's right, it is so simple it is laughable.
Now I"m not about to tell anyone how to trade , I've done that in a previous thread which I still use along with variations of it, you have to find your own way, but you will only find success when you give up that drug called 'indicator' and start studying Raw Naked charts and start making decisions for yourself and not waiting for a lagging indicator to make the decisions for you. It's scary stuff I know and a lot of people will never give up on their precious indi's, but for those brave enough to do it will in time be richly rewarded and wonder why they didn't do it sooner.

The other Big con in FX is the myth that EA's are the secret to lazy FX riches. IF you think that you can buy some $59.00 EA on the net or design one yourself and just attach it to your chart and head of down the beach while it miraculously makes you money , you are kidding yourself.

They may look promising on a demo backtest but the moment you put them on a live account you can wave bye bye to your money.
There're are no short cuts in trading, it takes time, so get ride of your Ind['s , toss your EA'S and start trading properly and you may some day be rewarded.

I will probably get a lot of hate mail from traders who say their EA"S and Indi's work good for them, good for them, but the fact is if you persist in using them your chances of making long term money are very slim indeed.
If 95% of traders fail and most of them are using Indi's and EA's doesn't it stand to reason that the 5% or so that make money are doing something different? If you follow the heard thinking you just end up being one of the 95% .

Why drive down a rough rocky road dirt track when there is a 4 lane highway just the other side the trees.

It is really that easy, just think outside the box.

Good Trading
Rifid

so, whats your secret?

This is totally correct. Please see below an extract from a comment i made in a different thread about a week ago.

For what it's worth forget EA's, all the bullshit indicators, all the 1000's of different methods. Keep it simple, look for supply/demand areas NOT tops and bottoms. Learn to manage your risk. First question when considering a position 'what is my risk'? I blew I don't know how many accounts along the way, you will too. Look at it as the cost of learning and stick at it. The biggest irony of all? Once you know, you know. It's very simple (not to be confused with easy) and because you know, you don't jump from thread to thread looking for the next great idea.

Bro, which are the 2 main one you outlined? My bad, after reading this long post, I don't get it, or is this a commercial ads?

I would say indicators are still useful to some extend and if one knows how to use it, they can trade profitably with them. I do not trade solely based on indicators but moving averages does helps a lot especially in the stocks market. The only problem is when new traders run down the rabbit hole by changing all sorts of variables of their indicators (seriously, some of them think changing the RSI period from 14 to 15 draws the line between profitable and losing system) and looking for the holy custom indicator. Compared to chart patterns, waves & price actions, indicators are quite objective whereas those chart patterns or waves are very subjective and frustrated to learn at first but great things doesn't come easy!

A few years back, there is tons of holy indicators and super turbo EAs selling out there and all new traders are buying those unicorn dreams. Fast forward to 2016, there are less scammers selling EAs and holy indicators while more and more retails traders play with the term SD, PA, SR, naked trading, trend trading, etc. especially the former ones get more attention in recent years. Is it time to stay away from these trading strategies since the majority traders are getting naked?

Talking about EA and indicators.

The day I starts to see much more consistent profits is the day I stop looking for supply/demand areas. I used to record every webinars from Sam in FXStreet, going through AZ, RTM and all the other threads in FF for years but find little success. Not saying that this strategy does not work (it just doesn't work for me), I still gain a lot of knowledge from these great guys but something that sounds very logic does not mean it will work for everyone even they practice them for years but these knowledge or any other knowledge can create a base or a structure for our very own strategy.

Yes you are right it does not mean that it works for everyone. This is why it's impossible for someone to teach anyone (in my opinion) everyone just needs to find their own way, what works for them. During the 6 years it took me to become profitable i guess i built up a lot of latent knowledge. That's actually part of the problem in trying to learn this thing, there are so many different ways to do it. Who is right and who is wrong? There is no right and wrong, it's a matter of finding a way that produces consistent returns. Sounds a bit obtuse i know but imo that's the reality of it.

. The other Big con in FX is the myth that EA's are the secret to lazy FX riches. IF you think that you can buy some $59.00 EA on the net or design one yourself and just attach it to your chart and head of down the beach while it miraculously makes you money , you are kidding yourself. They may look promising on a demo backtest but the moment you put them on a live account you can wave bye bye to your money.


Hi Rifid,
why are you saying that self designed EAS would blow your account and that they work only on Demo?
Lets say you have a profitable strategy and you make an EA of it,why wouldn't it work ?what are the causes of this loss by the EA in your opinion ?
I know that slippage affect the life account results ,but slippage will affect your manual trading too ,using pending orders!!!

It reminded me of my first acc that I started trading with. It was a 1k acc and i had only general knowledge on trading and types of candles. (I even used Fibonacci ) So in a month with trading small lots and moderate risks, always motoring my orders and closing everything when I am not near a computer I got my acc to around 3.5k. And i thought "SO FKIN EASY".
Than I started to learn about news, trends and indicators. It all became much more definite in terms of predicting market movements(I thought so) but i fact it just became overcomplicated. Overconfidence is a sin. Naturally I blew it off with my "surely it will go up by tomorrow" order.
Now I think that the best and the only indicator is your guts.