I decided to check out some of the Forex training programs out there, and boy, do they try to sell you on an illusion. On the Forexmentor.com website, Peter Bain claims that the average trader is successful 7 out of 10 times. 7 out of 10 times? I talked to a friend who is new to Forex and he said in his first two months, he's only accumulated 5 successful trades. He has no idea what went wrong. He says he took all the precautions described in some educational material from the Forex site. But because of the risk by reward ratio, if you can still manage to get 5 out of 10 trades successful then you average 50 to 60 pips every week. If you trade only one pair then it becomes difficult to gain above 50 pips because you can't see positive movement everyday in that particular pair.
So I showed my friend the Forex course I had been looking at, and we reviewed more of their tips. According to them, the best time to trade is just after 2 am (eastern). This is true for the Euro and the American Dollar, but not so for pairs like the Dollar and the Japanese Yen. You should have seen the confused look on my friend's face...
The major disadvantage of the Forex course is that you can't get the chart set up daily. It took us 25 days to see the chart set up exactly as the course had explained. Needless to say, it was difficult to determine the pivot point lines for some of our currency pairs...
After studying this Forex course, we've concluded that you must set your own rules because you can't solely depend on Forex,or Peter Bain's, strategy to identify entry and exit points. Target 35 or 40 pips because below 35 pips and your risk becomes too high.
Still sound overly complicated? Don't worry. You'll get the hang of it. I have. I think...
I love your take on the Forex world. I recently just got into trading myself and leared the hard way...twice. It's like the old saying goes, "No lunch is free."
ReplyDeleteHowever, in my scouring and researching I stumbled upon this interesting concept called, Da Vinci Forex. In essence, it surrounds the idea that, just as nature is a system of mathematics, so is the forex market. In the thirteenth century Leonardo Fibonnaci came up with his Gold Ratio that basically breaks everything in nature down into a system of ratios. While I'm not fully versed on it yet, I've seen within both Retracements and Extensions & Expansions that the ending numbers actually are applicable to the ratio... Now all i have to do is figure out how to map it and make some profit.
You're music is okay - But I'd rather hear more about this stuff. I'll keep checking back and keep the good tips coming.
Hey Sam, if you want to map it, first you’ll need to identify swings HIGH and LOW. Then you, using the Fibonacci tool that should be found on the trading platform, drag to get the retracement and extension levels.
DeleteAlso, when considering a trade, you might want to consider the following criteria (based on the Fibonacci-technique):
1.The price should be around 5 WMA (Weighted Moving Average)
2.It should be, at the very LEAST, a .38 on the retracement scale.