There are tons of so-called trading gurus out there promising people the world at the touch of a button. They are lying to you. We can automate huge parts of your trading, with indicators and algorithms to more accurately predict trends, and to even ping your smartphone when a candle peaks or plummets to meet an optimal condition for you to trade, but what no one can yet do with any long-term, realistic accuracy is create technology to trade for you. TAs v. ‘Bots: A Common Misconception A Trading Assistant (TA) is just that. It is designed to assist you in best knowing when and how to place or exit […]
I recently received a question on social media that got me thinking. The guy wanted to know a 12-month “performance record” on my accounts trading my new system. While it would be easy to spew numbers at him, we’re traders and we know how easily numbers can be manipulated. I hide nothing from my students. All the trades and accounts shown on my system website are the real deal. What this obviously educated guy wants is a guarantee that no matter what he does, the system will make him money. Here’s my response, just as I posted it to him: I agree, a 500 pip stop and a 5 pip […]
If you think Moving Averages (MAs) are boring, you may be using them wrong. To make really profitable trades we have to trade with the momentum of the trend and the best way to see the trend is to watch your MAs. You can calculate an MA on your own, but after you’ve done it once or twice, why would you want to? They aren’t complicated, but how much time do you have to spend calculating averages? To calculate a simple MA, you go back over, say, the last 50 days of closing prices for a currency pair, add them all together, and divide them by the number of sessions/periods […]
I’ve said it before and it bears repeating… “With everything good in Forex comes something bad.” I swear I’m going to put it on a poster someday. It’s true in life too, but Forex makes it really apparent. But like in life, knowing how to guard against the bad (risk) to smooth out the good (gains) in a consistent upward motion, is what progress is all about. The Trend Is Your Friend So, we talk a lot, and I mean A LOT, about the “trend” in Forex. Why? Because Forex is about statistics and probability. Seeing the trend, verifying the trend, and understanding what pullbacks (small reversals in direction) mean […]