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

wmram

Member
51 18
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.
If you have a small amount of money to work with, you are a market timer. I think most retail traders fall into this category. Fundamentals mean nothing to small undercapitalized traders. Timing price extension is what is of greatest importance. If you are one of these small undercapitalized traders, you are someone that's trying to scrape together a modestly profitable side hustle. Fundamentals may come to mean something to you when you have a viable trading account, but till then just try to make 10 pips a day. You gotta start somewhere; forget about the fundamentals till you're managing portfolios.
 
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1nvest

Well-known member
304 108
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
Renaissance haven't beaten the S&P for the last few years.
 

Jim B

Junior member
15 1
What made you think this way, I don’t think it’s designed to take retail investors money all though it does seem like that some times.
 

hatemypips

Established member
684 57
If forex market is random (100% efficent) no strategy will work.
It's not purely efficient if you try to fit assumptions of efficient market into real market. Take for example that all agents are price-takers or same thresholds or constraints for all market members. This is simply not true and this may hide trading opportunities.
 

NVP

Legendary member
37,750 2,095
just imagine a room with 97 blind people and 3 fully sighted

in the event of a fire ask them all to run to the exit sign clearly marked

thats Trading ...the people with vision always survive .....the rest perish

N
 
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ffsear

Senior member
2,241 489
If you have a small amount of money to work with, you are a market timer. I think most retail traders fall into this category. Fundamentals mean nothing to small undercapitalized traders. Timing price extension is what is of greatest importance. If you are one of these small undercapitalized traders, you are someone that's trying to scrape together a modestly profitable side hustle. Fundamentals may come to mean something to you when you have a viable trading account, but till then just try to make 10 pips a day. You gotta start somewhere; forget about the fundamentals till you're managing portfolios.

You think the 5% of retail traders that actually money make ignore the fundamentals? No way!
 
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wmram

Member
51 18
Small undercapitalized retail traders don't have the capital to whether too much heat while fundamentals become the dominant driver of the price move. I'm inclined to think most retail traders are small and undercapitalized. I could be wrong about that. My point was directed toward what I believe to be the retail trader. I do believe that you are a market timer, and I do believe that you'd be better off spending time practicing looking for and participating in price extension that will make a 10 + pip scalp. Save the fundamentals for later when you've made money and proven that you've got staying power in this industry. Work on fundamentals when you can afford to trade markets from the perspective of a patient trader.
 

Henow1969

Well-known member
269 28
Trends are only visible in hindsight .Most trend traders lose money in chop , when breakouts become consolidation zones.There are more trend failures than trends materializing , most traders lose money trying to find the illusive trends.
 

sebking1986

Junior member
46 18
The markets seek where ever liquidity lies in order to match orders placed by central banks. They don't see most retail trader money but it tends to be in the same place as it is for large hedge funds so retail get slapped around sometimes. At least that's my opinion of it.
 

sharabela

Junior member
14 4
Using Buy Stop/Sell Stop often triggers an entry a bit earlier. Thus, the price may hit your stop loss and go towards your anticipated direction later. I suggest that you take entry in a live market after having confirmation candle. Do some practice on demo account. I am sure it will help. I am wishing you best of luck.
 

hatemypips

Established member
684 57
Streak of wins create this illusion and it's important to not fall into a dream and keep your hunger in check because it's the time when things could go sour.
 
 
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