Is forex market an illusion? How to adapt to it ?

Baccarda

Newbie
1 3
I've been learning trading forex for about a year now and i've tried different Indicators and strategies and it seems that non of it is working in a long term.

I recently stumbled upon a video which changed my mind of how i think that forex markets work.
We all probably know the structure break and retest strategy which works on some occasions.
Video showed that if you place lines in random places, eventually all of them will become support and resistance lines. I did not believe it myself until i tried it.

Is forex market made to take retail investors money ?
Just when you think that you know where the market will move and place the trade, it will hit your buy stop and move the price to the opposite direction.

What strategies work for you knowing that market is built this way? How to adapt to it?
 

ffsear

Senior member
2,241 489
Sounds like you need to get a better grasp of the fundamental aspects that drive price rather then just taking a technical view on the market.

There is nothing wrong with trading technically, but if you need to have a fundamental bias that stops you from taking every single bull/bear flag, or whatever edge/pattern you think you have.

Spend less time on the charts and more doing research would be my advice.
 
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maby8

Junior member
48 7
While it could well work I do not think it is going to work every time. I would rather devote more time on research and analysis.
 

CavaliereVerde

Experienced member
1,524 1,953
If forex market is random (100% efficent) no strategy will work.
 
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LuckyMac

Member
56 14
For the most part the reason for the markets is to take liquidity and that includes retail. It is searching for buy and sell stops and it is looking for inefficiencies. once you understand it from that perspective you will make money. Also you need to make sure your management is key. Trying to go for 200-300pips is a lot percentage growth of account is more important that pip count
 

EasyTrade101

Newbie
4 0
Hi
The forex markets are tricky to navigate and even more difficult to be consistently profitable.

Of course traders have done so in the past and will continue to in the future however it is not an easy task.

I have created an excel spreadsheet, outlining the probability of achieving expected returns when trading Forex. It is important to set your expectations to a realistic level (sadly there is many stock brokers/ traders that will let you believe you can earn thousands per month trading Forex).

In my opinion the Forex market is utilised by institutional, investment banks and hedge funds that manage hundreds if not millions of funds. Such participants are purchasing foreign stocks (I.E USA based firms purchasing EUR based stocks). Such market participants will aim to get the best rate possible, giving them a higher profit trade, however retail traders will not need to worry about such problems (unless managing a large account).

I hope the spreadsheet helps you :)
(Spreadsheet is open to anyone interested)
 

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  • USD_EUR probability .csv
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EasyTrade101

Newbie
4 0
Hello again 😂

I discovered a Forex trader on etoro that consistently earns a profit of 1% per month, if anyone is looking for someone to learn from, he seems like a good start


If the link doesn't lead to his page, his name is 'Olivier danvel'
 

Inquisitor

Active member
172 71
Based on this it is not even worth considering after all making a $30 profit on a $10K investment is a joke.

1628764451600.png
.
 

EasyTrade101

Newbie
4 0
Based on this it is not even worth considering after all making a $30 profit on a $10K investment is a joke.

View attachment 304394 .
Year 2020 equity increased by 3.87%
10,000 investment would have earned a return of £387
(10,000*1.03) = 10,387

Forex trading does not come with huge profit margins, Forex trading involves small trades with tight risk management.

Yes £30 is a miniscule return although like I mentioned high profit margins are not expected. If an individual does expect high profit margins similar to stock trading, they may have been misinformed.

I will compile spreadsheets showing my work if you like :)

P.S I would like to point out that I have no affiliation with this individual.
 

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raik07

Junior member
11 8
It is for this reason that retail traders are the main donors of money in the world, they do not understand the business.

Large investment funds with capital of hundreds of millions seek a return of 15 to 20% per year and retail traders with all their ignorance seek returns of 50 to 100% per month and that is why they lose everything quickly and then claim that the market is a scam.

I knew a trader who is looking for returns of 1 to 2% per month and has been beating the markets with green numbers for 8 years.

This is because risk management is very low with stable results and that for retail traders is very difficult to digest.
 
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raik07

Junior member
11 8
not all obviously.

But there are some hedge funds that even exceed those figures.

What about Renaissance Technologies ???

and other star backgrounds.

My focus here is that retail traders want to achieve big numbers with basic technical indicators and 15 minutes a day, and that's just an illusion.

other funds invest millions of dollars in technology and research and only seek between 12% to 20% per year
 
 
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