If Forex is so lucrative then why many people are not interested in this?

[Catalonia]

Hi to all!!

It's easy to make money trading currencies. Sorry, but it is!!

You need only a "system" to rely on and you need discipline.

About the system: remember "less is more". For instance: 3 EMA's (7-14-21) and ADX system. If you do not want three EMA's, try these 2 (13-34) ans ADX system.

You need an up to the second news service. And that's all. You are set.

With these weaponry, I made 600 pips last friday.

How did I do it? If EURUSD are going down, USDCHF goes up and then you'll find that cable goes down as well. So, look at these 3 charts only. Look at your EMA's and your ADX. That's all.

Do you need to trade all the day through? No, you don't. Look at the ADX system. Is adx line trending? What are EMA's doing?

And you should answer yourself this question before pulling the triger: How much can I afford to lose?

Don't lose your time and money trading stocks: trade forex.

Happy trading.

[Catalonia]

Sorry

My market maker is REFCO.

[csaunders]

Hi Pete,

Good to see you are back after your lengthy hiatus. We definitely did miss your posts.

I followed your link to the Classifieds sections and started reading your claim to having developed a system that will make all traders profitable. I thought you were being sarcastic but to my consternation realised you were being serious....!

Comeon Pete get real - there is not system that can be 100% profitable- maybe for a time period - but never always. And for putting Market Makers in jeopardy they will only be to happy to take on the additional Traders your "system" introduces into the Market.

Good luck with the implementation hope you make good money but please keep all the marbles together....

Cheers,
Cliff

[PanMarcepan]

“If Forex is so lucrative then why many people are not interested in this?”


For non-institutional traders/investors (small capital)

This is a new market. The Forex hit USA in 2000 through GFT and FXCM the most.
The lack of confidence in stock market and relatively small returns to the size of the capital drove many people to look for trading/investment opportunities somwhere else. May be that’s why Forex gained more popularity ?
In Europe the Forex was already a good few years in advance and popular. Traded by many small traders/investors since 1992. Saxo (1992), MGforex(1992), CMC(1996) just to mention a few.

I agree with the Mishak’s statement:
“The market is not so easy manipulated by powerful individuals”
Because it’s not. What makes impression that is volatile is the leverage.

The percentage change of any pair is microscopic compare the stock market.

As a mater of fact trading stock market (daily/swing) having less then $40 000 of capital is impossible. Not to mention a dozen of regulations. Just to prove to the masses that long term investment is the way to go. Then we buy a stock and wait 20 years taking 100% profit. Sure we will.

Hence the Stock Market is for investors rather active traders.

I like your humorous comment Pete:
“The advantage of trading stocks over FX? It takes longer for them to lose their savings”

Well … Actually, if you would trade Forex with the same margin/leverage …Forex would take longer time to lose their savings. You just need to set your leverage 1:2 or don’t trade on leverage :-)

Back to the main question.

One time I accidentally ended up on one of the financial forums (IRC). After a while I realized it’s not a Forex related, so I asked the question if there is anybody who trades Forex?
One of the members said: “Never heart about Forex”
The other member: “I don’t have this symbol, are you trading OTCB?”
I apologized and left the forum.

That may give some idea how popular is Forex.

Regards,

[peteuk]

Originally posted by csaunders
Comeon Pete get real - there is not system that can be 100% profitable- maybe for a time period - but never always. And for putting Market Makers in jeopardy they will only be to happy to take on the additional Traders your "system" introduces into the Market.

Good luck with the implementation hope you make good money but please keep all the marbles together....

Hi Cliff!
lol, I simply knew there had to be a sceptic out the somewhere!

Tell me, why not always? The system, which adapts to various market conditions, is more effective and more consistent than a live trader, has the ability to make more calculations and better assessments of the market faster and more accurately than a live trader, and has no emotion. It manages a trade far better than the majority of traders, maximizing profit and limiting loss. It doesn't get greedy and it never hesitates. It's not right 100% of the time, nothing is in this game, but it consistently produces profit in both ranging and trending markets.

You say a system can only be profitable for a 'time period', well the same could be said for all traders and their strategies. What do they do, give up? They adapt, they change their trading strategy to suit market conditions, what's the difference? The only difference is the system realises it sooner and acts upon it immediatly, while the trader is still sitting there scratching his head wondering why his strategy no longer works. Cliff, I think you underestimate the power and versatility of the computer, for something like FX it's an ideal tool and often way ahead of the game, it reacts faster, and makes decisions based on fact, not sentiment.

As for MarketMakers, like any bookmaker they need to have more losers than winners betting, it's where their profit comes from, that's logical...it's not rocket science to see what would happen if the ratios were reversed.

Crazy? Nah, just insightful with alternative perspectives, and making use of the very latest modern technology has to offer. Sliced bread? Impossible, it'll never sell!

Never say never

Cheers
Pete

[jtv1019]

Cliff,

I don't know what kind of system Pete is talking about but I agree when he says that a system is profitable 100% of the time. I don’t know if his is, but I see where he is coming from. The thing is that he might not be talking about a mechanical trading system that spits out all of your trades and you must follow. The word "system" to me is a very broad term in the investment industry. My definition of a system is any way that you as an investor picks entry and exit points. Even if every time that you place a trade you just flip a coin, that is still a system. How do you pick trades? (Question to everyone, not just Cliff) Everyone single trader I have ever known uses a system. Whether it's their own system or something that they read in a book. Also every one of these systems can be altered to the change in market conditions. So Pete I believe you and hope you make a zillion dollars with your system. Just remember to keep it simple.

Good luck to all,

Jason

[PanMarcepan]

O, Pete…!

The best human players in chess have proven that an intuitive
feel of the game sometimes (usually?) beats computers.
No doubt about this. ( I play chess since I was 8 years old)
Can a human who has a superbly intuitive feel for chess
positions beat a computer which tends to calculate many
many more moves ahead? Yes.
Still the chess is the game of calculation that computer
has a superior advantage over a human being. Who
Wins?
Humans have an advantage over the computer
mostly on strategical points of the game and therefore we can
make long-term strategies much better than computers.

The Market is far away from any mathematical calculations and
too far away from chess in any aspect and under any circumstances.
Not even close to it.

How computer can determinate importance of the fundamentals
Events?
Example: G7 meeting, what kind of input and instractions you’d
give to the program to properly calculate and execute the trade
based on the upcoming events.
It’s impossible for the system to be as effective as humans because
The system has no such function as:
“Learn from the experience”
The system would be effective only when it’ll get to the
point: it can programm itself and adopt to the new conditions.
Hence it would became a brain with it’s own strategy and would eliminate the human effect.
His reaction to any action would have a doubt about any consequences resulting
From it’s behaviour.
The computer would change it’s mind and stop the calculations, swithing
To “listen” mode like we do sometimes. It’d develop the same instinkts:
Fear, gread, etc….
It would get jammed eventually.
It’s not a Matrix yet and Si-Fi movies are good for entertaiment only. We are still trading
Human’s market. Not machine yet.
The system calculation gives many false signals because the system doesn’t understand
reaction of the market.
The calculations are averages and the numbers from the past. But they don’t calculate
the future reaction as the data is not available yet.

Show me the system that will calculate Chinese Yuan as the most promising currency?
Or… find at least one that will give this signal?

[PanMarcepan]

P.S.

I don’t know how many chess players are out there?

But… Have you noticed that keeping the same strategy playing with the same opponent will eventually make the opponent having control over you?
Then what you do is very stupid move, that totally destroys his harmony and his system.
It’s unpredicted move that will give you an advantage over his system and the game becomes equal and you’ll become a winner again.
Pan