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Originally Posted by TraderABC
Forex as a system with what rules? What laws move forex prices?
So the major questions are:
[font=Arial][size=3]What moves the rates?
Why are there so many indicators if they are virtually the same and available to everyone? Who is supposed to loose?
[font=Arial][size=3][b]How can some simple, and linear math determine the future rates?
Why is everyone taught the same?
[font=Arial][size=3]Why do 90% of traders loose?
[font=Arial][size=3]Why do very successful traders need to sell expensive courses, merchandise and so on?
Comments anyone?
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Here is my 6 cents !!
1. Market is made out of millions of traders and these are the traders who move the rates. The rates move in the direction where majority of traders are biased. This includes you and me also.
2. There are so many indicators available all derived from the same source OHLC as you mentioned. But each one of them throw a slightly different picture or flavour (not day and night difference though..) of the market's current position. Even though there are millions of traders in the world, all can not think alike. Each one has his own frequency of thinking and for some of them some indicators match their thinking frequency. They stick with them they like most. All successful winners in this game do not use the same indicator. They have become successful identifying which indicator suits them best. People who do not know what their inner strength is and what is their natural style of trading end up not finding the suitable indicators for them to succeed. They are 90% and are bound to loose. Again, finding the suitable indicator plays only a part role in their success.
3. Simple and linear math used in the indicators are never developed to predict the future rates. These indicators measure the mass psychology of the traders at any point of time and help traders to decide which way is better to go. Successful traders always take chances by going with the mass. TREND IS YOUR FRIEND. Successful traders never win always. They too lose. Since most of time they are able to read the mind of the mass and go with the trend, their winners are more than the losers.
4. Everyone is equal in this world and that is why everyone is taught the same !! ;-) It depends on the individual how he/she is pursuing what is taught and becomes a winner or a sucker. 90% sucks because they don’t know how to follow what they have been taught.
5. Same as 4.
6. Yep, trading is a challenging experience and demands the same amount of effort from you to analyze the market for each and every trade. The effort required from you for every trade is same when you have 1 year exp or 10 years exp. It does not mean a highly experienced and successful trader can trade while he/she is sleeping. They have to sweat to win every trade moving on. They don't have a magical net which will attract all the fishes without the pain of waiting. Being highly experienced and successful, they know where and when they could catch more fishes but have to go thru the hardship of normal fishing to catch their booty.
Some winners decide to take things easy after a while by diverting their energy somewhere else (writing books, seminars, classes etc.,).
Shan