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Re: Forex as a system... Who benefits? What internal rules exist in FX?
"Forex is a gambling game where the broker always has the last laugh. There is no mathematical or statistical theory that can explain forex movement."
So metal, are you saying that the reason price on eurodollar was so reluctant to break below 1.1930 and had been trying to do so since April was nothing to do with buying demand keeping it up? It was not predictable? And all the traders that bought at this level were also foolish gamblers that got lucky? Did the fact that the Trichet give a negative speech implying interest hikes were less likely than the market had thought combined with positive US data have nothing to do this level giving way? Was the fact there were an estimated 5bln Euro's worth of sell stop orders below this long held support just a random fluke that all the major players in the market randomly put their orders there (of course it is just a fluke because the markets cant be predicted, that support was just a random phenomenon like when we see support lines drawn on randomly generated graphs) geez those governments and banks sure are suckers thinking that a support level is an area where prices are bought back. I'm sorry but i've never heard anything more ridiculous.
And my most important question, are you a trader? If so how do you trade if you think the markets are unpredictable and methods such as support and resistance levels i have just described are pointless because "no mathematical or statistical theory that can explain forex movement"?
It is said 95% of traders are losers, yeah maybe at FXCM where people open an account with £500 trade 1-2 mini lot a position, thus risking about 10% of their account on a trade, they cut their winners early, experiment with pointless theories and within 5-10 trades they have blown their account.
You walk into a trading flooer at a bank and see whether that 95% statistic stacks up there, 95% are successful more like. And no it isnt because they have inside knowledge/drastically improved prices etc etc because i have traded for a firm. Sure the spreads are better and the prices move a little quicker when sourcing from multiple banks, but they use support and resistance levels, they follow the trend, they stand aside when markets are choppy, they do everything experienced traders tell you to do on these boards, there is no conspiracy, there is no fixing, you are just an unsuccessful trader and i guarantee when you start understanding how the market works you will feel so much better.
The reason why there is no mathmatical formula that can be programmed to beat the markets (i touched on this in a previous post) is because the markets are about psychology and human emotion, if you programmed a computer buy every support sell every resistance, it wouldnt make money i dare say, the reason isnt because they dont work, its because a computer cant analyse price action, market sentiment, the psychology of the market to decide if we are heading for a bounce, a break or a fake break. All newbies think they can say if x happens then so will y, when it doesnt thay say markets are random, which is rubbish, you are just inexperienced.
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