I have found the Holy Grail!

Hello babypips members,

Its been a while since I posted, and I’m pleased to see this forum doing so well. I went through babypips school many moons ago and learnt some valuable lessons.

Right, the Holy Grail:

After a long time searching involving much pain and anguish, I have found the Holy Grail at last.

If I give you my trading story maybe it would help you to understand. Like many I entered Forex blindly and looked to wherever I could for advice and guidance.

Firstly, when I started trading, I just entered trades thinking �I am sure price will go here…� Unfortunately I was correct, this lead to the feeling of �this is easy, I�m an expert…�LOL. Of course the emotions had taken control and before I knew it I was trading with huge risk. The days came when the market decided I was just another wannabie and killed my account.

I was naive and believed in a quick route to riches.

Having lost money numerous times again, I decided to check through the forums looking for a profitable system. I thought to myself �OK, I�ll just copy what other profitable traders are doing with indicator x, y and z. Collecting pips will be like taking candy off a baby� Yet again I was disappointed. Systems that worked well in ranges chewed up accounts in trending markets and visa versa. I would stare at the charts and see that the indicators were telling me BUY/SELL and watch with distain as the trade went in the opposite direction to what the indicators showed was a great entry.

This was the point that I noticed that if I had gone with what I saw in price instead of what the indicators were saying, I would have been successful. I couldn�t go down this route though, surely I must be wrong and it�s just a fluke? Nobody can trade like that? It�s just suicide. I dismissed those thoughts of just trading price action and persisted with indicators/systems until I yet again began to lose money.

I had actually seen that if I had just traded what �I SAW� and not what the indicators said I would be surviving the markets, but still I refused to believe in myself.

This is the point I came to, I had ruined my first 2 accounts and lost tens of thousands of pounds (real money), I was so emotionally drained I just pulled out the remainder of my cash and thought �It�s just not possible to make any money in Forex over the long term. I�m sure traders in the 5% are doing well, good luck to them, I�m just not cut out for it�.

I turned my back on the markets for a while until I was watching CNBC one day and saw a commentator talking about commodities with a gold and oil chart thrown up. I was looking at the chart on TV and thought…I would sell right �here�. Gold hit its high the next day and fell the next week without looking back. I posted this on another forum just to record my trade and gave a commentary as price was about to drop. The forum still exists (that forum is not Forex related but has the trade time/date stamped.) I still didn�t want to trade again even though I would have made a fortune. Next I looked at the OIL chart, same again, just a naked chart. I watched the ticks and saw where to sell…I sold $2 from the high. May sound like complete bullocks to many of you and I wouldn�t blame you if you didn�t believe me, I have nothing to prove to myself.

Like a scolded child, I reopened my forex charts…I saw the indicators…off they went. I ditched the candles/commentary/pre-news release expected figures/experts advice/S=R/Pivots/Fibs and just looked at price �now�.
I thought to myself �OK. I don�t have to make this work. I don�t have to make money. I don�t need forex. The promise of �get rich quick� had faded into distant memory. The hype of �Well, the advice from Mr X must be right because he is a chief trader for a major institution� passed me by. I frankly didn�t care what anyone said about price direction.

I watched the price again and again, hour after hour, day after day. Nothing else. I began to place my trades again. The first few trades were profitable, but I had learnt not to let my ego and emotions take over. I had lost any kind of feeling and knew it was a good thing. The trades were numerous and consistently profitable, but still I always thought before entering a trade �How much could I lose here?� instead of �How much can I profit?�. My main purpose was to ensure I didn�t try and get revenge on the market if price went against me. Losing trades became just a number; winning trades became just a number. A losing trade resulted in thinking �I was wrong. The market wasn�t ready for my entry. Move along.� and was quickly forgotten about. Likewise, a winning trade jumping +300 pips with a 10 or 15 SL resulted in my thinking �I was right. The market was ready for my entry. Move along.� And was quickly forgotten about.

I wouldn�t try and add up my wins/loses until I had finished trading every day. If I had a great day, I would think �OK, don�t change anything.� If I had a losing day I would think �OK, don�t change anything.�

I gradually learnt that the only way to learn trading is the hard way. I have learnt my lessons from my past mistakes and now just see trading as �slightly boring�. I have learnt there are no get rich quick holy grails. I have learnt that the only profitable way to trade for me is by just looking at price.

I really don�t care what is happening on the news tomorrow; I don�t let it affect my trading. I don�t care what �might� happen with interest rates. I don�t care that the market is �showing a potential retrace� according to experts. All I care about when I trade is �now�. I am absorbed into the chart and price, I see nothing else. Nothing distracts me whilst I trade. (Posting my trades here in real time was difficult but is becoming easier), the time passes quickly and then I know when to stop. When I stop I count the results for the day, but even if negative it doesn�t bother me. I know the week will be positive.

I have learnt to disassociate myself from �feeling� whilst I trade. I only trade what I see. I trade the miniscule movements second by second and watch as they unfold into large positive trades. I can�t put it into words, really. It�s just something that develops within you over time. Time and anguish spent learning the hard way brings many to this point of just watching price.

I don�t think I am great, I don�t think the market owes me… I do care that each week collects a profit from the market table.

I can�t say anymore than that really. It�s a voyage of self discovery. It hurts, but eventually yields results.

I should have stuck with my original trading style at the very beginning, but the problem was I needed to learn Money Management, Emotional control and numerous other aspects of trading… the hard way. I look at it as a blessing in disguise to have arrived back at this point.

The route down this trading path has turned out to be a complete circle, the circle leading back to myself.

I have found the �Holy Grail� after much searching. We just �don�t see the wood for the trees�.

[B]The Holy Grail is within you.[/B]

PS I wish that newbies entering into Forex where not taken for a ride by the “Snake Oil” salesmen peddling their “Buy my system”, “Buy my Expert Robot” etc. I wish they would ask themselves why the owners of these systems arent using them to make billions? Much respect though to those who offer their advice for free and readily show others an edge using what works for them

Unfortunately I have been there and fell for the Snake Oil when I started trading, I understand why newbies fall into this trap. I hope they read this and learn that price action and dedication is all you need.

Best Regards


PS Admin, if the link is not allowed, I will delete it. I hope it stays though as I havent had time to post in 2 forums at the same time due to trading timeframes.


shakesfx great post!!! I agree about most of what you wrote. the grail is you and psychology and mm is the most important. Also Im a naked trader too at most ill keep my 60sma and thats it. Ive tried everything else at different points but in the end price is all I need. I do use candle charts though.

best of luck, john

Great post…I think once the initial excitement and nerves are gone one can be profitable in the long term.On that note i will leave the trade below open only looking in to see if TP or SL has been hit without being emotional about it…

I have stared at the EUR/USD and decided to go long.

entry-1.3250 (although i could have waited for 1.30 region)

Stop loss-1.2750

limit-above 1.39(i am determined to be emotionless until im in 500 pip region)

Seems the positive answers on here came from experienced traders, why do you think that may be?

1 Like

Watching the price is definitely key. I’ve tried tons of indicators. Nothing seemed to work. Maybe it was me failing the system or whatever. Maybe the indicators were horrible. What I do know is that ever since I’ve thrown away my indicators and decided to watch the price and just go with the trend, I’ve been more successful. It’s pretty much common since. Price will ultimately tell you where it is headed.

Everyone is looking for the Holy Grail! This month I�m up about 820 pips, I�m using a forex system I found in another forum there were some money managers bragging about how much they were making using a Joone based Neural Network android system. So I searched the post and did a deep Google search on the term forex android and I got lucky and found a copy of the system. Well it helped me and I�m sure this will help you. Before I got my hands on it I had already lost 3 trading accounts. Since I have used it I have been making money every week since this program makes new trades like every day and this is not some silly metatrader EA this is something totally different. When you turn this on your going to be blown away at the quality! and features and accuracy. I attached the file but do a Google search on it. Nothing but good reviews on this takes like 1 minute to install and it configures itself automatically. See attached File: it was checked by baby pips and is safe:

1 Like

Have to say it’s a good post. thanks shakesfx.
still , one question, do you profit when trade this way? how does the return compare to 15% per year?

ROI is over 100% depending on MM. I know this claim sounds a little false, but if you wish I have a live journal on Forexfactory under shakesfx, you can check to see (the posts are in real time and time/date stamped, so no cheating). Every single trade is posted before the event and checked by other live traders.

This method of trading is absolutely the only consistantly profitable way as far as I am concerned, it works well in both ranges and trends, the risk/reward is good and price action only works across the board, as you know.

Hope this helps,

Best Regards


mp you always say you need to wait for a candle to close in price action? I don’t Im not even sure what you mean 4h 1d i think you would wait. but me Im an 5min guy and I look at larger timeframes for s/r 4h is best but 1h will do. I then watch the charts and look at momentum and “feel” or if you wil SEE where the market is heading and sentiment at the moment and I trade.

Sometiems Im like you and Ill choose my bus long or short and Ill scalp the hell out of a positon up and down. I don’t wait for candles to close.

to each there own I can say honestly your shi channel cost me alot of money coz It clutters my chart and skews my feel for price.

if you can trade for years and not see where price is going then I don’t know coz to me its a crutch. Why use shi can’t you see if price is printing higher highs and higher lows or vise versa?

I think you have alot of decent ideas Im just tired of being looked at as a second class citizen coz I dont use lrc

enjoy and trade well


“the reason price action falls BEHIND is simply because one has to wait for the candles to CLOSE to be able to use them, and if one wants confirmation, one has to wait for yet ANOTHER candle to close. Now this is not to say that price action doesnt work, for it definitely does for those who have studied and learned, although one gets just as many drawdowns with price alone, as you get in any other manner !”

mp, you are very wrong. I determine price action in every tick…I do not need to “wait” for a candle to close…simply because I do not use candles.

As for a 100% ROI, I actually said “over 100% ROI”, this could be determined as 500, 1000 etc, its dependant on persons MM. I personally don’t reveal my MM, or Broker for that matter.

I don’t think you have quite grasped what I mean by Price Action…Candles are useless to me (except during a power cut), the fast price feed from a liquidity provider tells you everything about supply and demand, this is something that takes time to learn and is extremely profitable, but when mentioned creates a brick wall…Seems our brains refuse to believe it’s that simple I guess, the need for the indicator crutch continues…

Tell me, how was trading before computers? Heard of a guy called Richard Wykcoff? He was a Wall Strteet “Tape Reader” from the early 1900’s…I use his method, but with todyas fast price feeds it has been taken to the nest level…

In a head to head competition, a good “indicators” trader will ALWAYS beat a good “price action” trader because the indicators are showing what has happened, what is happening and with the correct indicators and some experience, what WILL be happening !

Completely incorrect. Price to the “left” is how you use indicators, this is of no relevence to me…what is relevent is price happening “now” and it leads to the “right”, so we are always one step ahead. Price Action shows what “is” happening…this in turn leads to entering tades in the correct direction…

This following article may explain a little more…Yes, I am a tape reader, if you wish to call it that. Anyway…

Tape Reading, by Linda Bradford Raschke

Sometimes it is nice to reexamine a simple concept when there appears to be overwhelming volatility in the markets. Mechanical systems and patterns are helpful and even necessary for the structure they impose in organizing data, but even Richard Dennis in his original course discussed ways to “anticipate” entry signals, exit trades early, and filter out “bad” trades.

Learn to follow the market’s price action and read the signals it gives. This can become a strict discipline in itself and the result will be greater confidence that a trade is or is not working.

Tape Reading
"Trading technique is simply the ability, through study, observation, and experience, to recognize the signals in each of the several phases of market movement."

  • George Douglas Taylor

Tape reading long ago referred to the practice of studying an old-fashioned ticker tape and monitoring prices, volume, and fluctuations in order to predict the immediate trend. (It does not mean you have to have the ability to read the prices scrolling across the bottom of the screen on CNBC!) Tape reading is nothing more than monitoring the current price action and asking: Is the price going up or down right now? It has nothing to do with technical analysis and everything to do with keeping an open mind.

Even the most novice observer has the ability to see that prices are moving higher or lower at any particular moment or, for that matter, when prices seem to be going nowhere or sideways. (Markets do not always have to be going somewhere!) It is also fairly easy to watch a price go up and then tell when it stops going up - even if it turns out to be only a momentary pause.

I’ve known hundreds of professional traders throughout my career. I don’t want to disappoint you, but I know of only two who where able to make a steady living for themselves with a mechanical system. (I am not counting the well-capitalized CTA’s who are running a money-management program with “OPM” - other people’s money.) All those other traders used some type of discretion that invariably involved watching the price action at some moment - even if just to move a stop up or down.

If you can learn to follow the price action, you will be two steps ahead of the game because price is faster than any derivative. You may have heard the saying, [B]“The only truth is the current PRICE.” [/B]Your job as a trader will become ten times easier once you accept this. This means ignoring news, opinions, and personal biases.

Watching price action can actually be very confusing if you go about it like a ship without her sails up in an ocean squall. You will get tossed back and forth with no sense of direction and no sense of purpose. There are two main tricks to monitoring price action. The first is to watch the price relative to another “reference point.” This is why many traders use a “pivot point” - and it works! It is the easiest way to tell if the market is moving closer to or further away from a particular point. This is also why it is often easier to get a “feel” for the market once you put a position on - your “reference” point tends to be your entry price.

Some reference points, such as a swing high or the day’s opening price, will have much more significance than those points involving some type of calculation. (Some numbers might have special meaning for those who calculate them, and who am I to argue if they work.) I like to concentrate on pivot points that the whole market can see. To sum up so far, when watching price, we want to know the following: how fast, how far, and in which direction. It takes two points to measure these things. One will always be the current price, the other a pivot point.

  • Do not watch price for the sake of watching price. Watch price with the intent to do something or to anticipate a certain response!

"The study of responses … is an almost unerring guide to the technical position of the market."

  • Rollo Tape (Richard Wyckoff), 1910

The second main trick to monitoring price action is to watch for the market’s response to a particular condition … in other words, anticipating a particular behavior. For example, if the market has been at a very low volatility point and just begins breaking out of it’s particular trading range, one might anticipate that the price would begin to accelerate in an impulsive manner and not run into immediate resistance. Or, on a directional play, if the price is moving in an impulsive manner in a trending market and then pauses to catch its breath on a mild reaction, one would expect it then to continue on in the direction of the trend. When there is a particular behavior to anticipate, it is easier to watch the price to see if it acts according to one’s expectations.

Is the market failing to break on bad news? Is it finding support after a series of advances? Does it run into an invisible overhead wall and sharply back off, implying strong resistance? These are market responses to certain conditions. Tape reading is like playing a tennis game and watching to see how your opponent hits the ball back.

Part of studying price behavior and gaining experience as a trader is gradually learning what actions to anticipate. Then you must learn what the market’s most probable response or outcome should be. It will always be easier to anticipate an event or response which happens 70% of the time than to be looking for that which happens only 30% of the time.

However, it can also be a profitable strategy to recognize when a given signal or expected response is failing. Sometimes a failed signal can be more profitable than the normal expected response. For example, a classic failed response might be a scenario wherein price was consolidating in a pattern of higher lows and lower highs - a classic triangle pattern. One would expect a breakout from a chart formation to have some follow-through. However, if price only penetrates the lows by a small amount and then turns upward, picking up volume and momentum as it goes, and comes out the upside, a very significant reversal has probably occurred and there may be much more price advance to unfold.

One last trick to watching price action is to learn to think in terms of “handles,” or levels. Think of the S&P’s as reaching for the “1110” handle, or the “low 1060’s” as a level. Each ten points is a defined level. Use big round numbers as reference points for levels. It doesn’t mean that you are placing orders at those numbers. It is just a simple way of organizing data that professional traders practice subconsciously.

Pivot Points

An astute trader will always have the previous day’s close in his head. He also knows the previous day’s high and low (prices he would have liked to have bought and sold but probably didn’t). He also knows the opening price, for that tells if the buyers or sellers are in control for the day.

The previous day’s high and low and today’s open have very strong psychological implications and are the most important “pivot points” to recognize. By concentrating on price action near these points, we can eliminate much of the hard work in tape reading. Many times the market will let us know right away if this is going to be an area of support or resistance.

The previous day’s high and low tend to overlap in congestion areas. Look to exit profitable trades immediately at these points in sideways markets. In trending markets, the price will run through these points a bit before pausing. When the market is strongly trending, the opening price becomes the most important.

If we are watching a high, low, or opening price as a pivot point, we are watching to see whether there is any impulsive price action as the market approaches the point or moves further away from it. What is “impulsive action?” I like to call it a “whoosh.” The market moves rapidly as if just coming to life for the first time. It is usually a series of ticks in one direction without a tick in the opposite direction. The market is tipping its hand. A sequence like this tends to consolidate or pause a bit before being followed by more impulsive action. This is quite easy to see in a market like the S&P’s if you look on a short-term time frame. If we quantify these “whooshes,” which we can do in several ways, we will see that the market tends to have continuation moves at least 2/3’s of the time. Not bad for arriving at a “positive expectation” simply by following price action.

In conclusion, tape reading is not watching every trade that passes by (a monotonous task) but rather keeping an eye out for unusual impulsive action, unusual volume, or just observing the way the price trades at significant levels. Each price swing has forecasting value as to what the next most immediate move should be. We then follow the price action to see if that move plays out.

Tape reading is at the heart of swing trading. When looking for short-term moves, price-based derivative indicators will be too late to be of value. Ultimately, traders should feel a great sense of freedom when they can rely on simple charts to formulate a game plan or a conceptual roadmap in their heads - and the movement on the tape to tell them their game plan is correct.

All the Best


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Being a newb, I can’t begin to give an opinion one way or another here however; I can give my personal experience on one issue…
I was in a trade just a few days ago and I knew there was a red flag and yellow flag news reports coming up. I had a stop loss set and I wasn’t risking that much so I made a decision to stay in the trade figuring that if it hit my stop no biggie.

Well OMG!!! Within just a minute or two of the news time the price/candles went crazy. I wasn’t just that it shot down then up then down… It was how fast it did it! It never hit my stop (it was a fairly large stop) but just seeing and experiencing that with real money on the table made up my mind real quick that I will never be in a trade at the time of any major news announcements again.

And to be honest and although it wasn’t much; I’m glad it was real money and not my demo account because I’m not sure I would have had the same appreciation for what I was experiencing.

I will also state that I am still not saying someone is wrong for doing that, I just won’t be doing it anymore.

May you all do well in life!

i�d take most of what this fella has to say regards professional trading operations with a large pinch of salt if I were you shakesfx.

he thinks he knows everything, knows everyone & knows all there is to know about the workings of a typical (speculative) operational desk.

in reality, what he actually knows about professional trading operations & their structural price flow circuit, you could write on the back of a postage stamp [B]LOL[/B]

Best of luck attempting to impart any kind of common sense, realistic information into his corner. You’re just as well to let him carry on in his own little fantasy world, coz otherwise you�re just gonna waste your god damn time banging your head against that wall :slight_smile:

while jimmymac maintains a definite (and understandable) dislike of me that drips venom far exceeding a simple conversation about the yea’s and nays’ of one method vs another, we refer here to a form of price action and “tape” reading that was the ONLY method available before computers and the mass entrance of the “retail trader and the computer !”

to quote from your “great” tape reader Wycoff —

[I][B]“It seems to us, based on our experience, that Tape Reading is the defined science of determining from the tape the immediate trend of prices. It is a method of forecasting, from what appears on the tape now in the moment, what is likely to appear in the immediate future. Tape Reading is rapid-fire common sense. Its object is to determine whether stocks are being accumulated or distributed, marked up or down, or whether they are being neglected by the large investors.”

[/B][/I]THIS is a direct quote from the pdf and i draw your attention to the words “DEFINED SCIENCE” which the PDF goes on to state requires “27 hours a day” of observing, and a lifetime of work, and EVEN THEN, only the really ABOVE AVERAGE person will BEGIN to achieve success.

The odds of that SUCCESS (which they also state CANNOT be achieved by the AVERAGE PERSON), appears (and i repeat, is stated by THEM) to be almost impossible to achieve and therefore becomes a NON SITUATION for most newbs, does it not ?

that YOU can achieve these successes only proves that you are one of the gifted, as there are so many computer generated indicators, overlays and simple EA’s that will do WITH NO EFFORT what you are so gifted in doing yourself, simply proving that READING THE TAPE is something that well belongs in the past, or at best provides hours of entertainment as a trader lunges hither and yon attempting to keep up with the tremendous volume of changes that occur WITHIN THE TREND on any day or hour !

an excellent “tape reader” or judge of market depth and direction is a science that takes MANY MANY years to develop and is usually NEVER developed in most traders, even those of merit ----- THIS and only THIS is why i point out the inherrent problems with the method.

while no exponent of “systems” and probably offering information that is as hard as yours to put into practice for MOST new traders, my interests lie with the desire for the newb to be able to SEE what is happening with price direction in the short term, and price TREND over the longer term — for the AVERAGE newb, that procedure is far safer than trying to follow what appears ILLOGICAL and takes years (if ever learned) to achieve.

[B]that YOU can do it is MARVELOUS, and my hat is off to you, but well proven and even well stated by your “heros”, is the fact that one is born with the ability and/or can LEARN it if one is truly gifted !
ME — ill take a simple double smoothed stochastic instead of the years and years of study, or in your case the genetics that provided you with such a GREAT TALENT !

enjoy and trade well



to be honest, the channel set-up, which you hang your hat on, is actually a pretty decent piece of kit. Certainly a notch or two up from most of the other spurious, mumbo-jumbo nonsense doing the rounds out there.

i�d go as far as to say that if teamed up with other basic, simple, common sense price action material, it could well enhance & compliment a new traders kit bag.

what exasperates me/us however, is your constant, misleading referencing of what professional traders do or don�t do regards technical trading/positioning & the casual dismissive tone of the importance & emphasis placed on fundamental analysis.

remember, you�re (potentially) influencing new entrants who have very little knowledge or experience of how this marketplace operates & how price flows are generated, managed & dictated.

just because [B]you[/B] choose to ignore fundamental views or prefer to utilize a particular element of technical strategy play in favor of another, doesn�t mean you�re right & the rest of the industry is misguided.

to suggest professional traders (at hedge funds/banks/spec firms etc) pay little or no attention to fundamentals and/or ignore ‘price action’ models is not only ridiculous, but downright insulting.

it demonstrates your total lack of first hand knowledge/experience of a typical professional trade desk operation & gives the wrong impression to newcomers into this business.

fluff out your posts with hot air & paint all the pretty pictures you like, but [B]please leave the mis-information where it belongs[/B]���…in your imagination!

[B]allow me to thank you muchly for coming forth with the reasons behind any disagreement — it SO beats calling me a “nameless” something and starting a war ---- and i REALLY mean what i say ![/B]

[B]so show me news where the price DID NOT return to its median trend and then continue in its “assisted” direction, except for the first announcements of major news, such as europe is in bad shape also, and i will publically announce you to be absolutely correct, but also retreat somewhat from your stance, take a GOOD look at what ive been saying (which very well has been directed in one way, possibly mistaking what youve been saying because we are coming from VERY different directions)

it is becoming more obvious that we are saying DIFFERENT things about DIFFERENT situations and misunderstanding each other — THIS would obviously lead to a major confusion on the issue ![/B]

[B]to use a humble example for a moment — do you think george sorros was really interested in the minute by minute price action when he took on the bank of england ? I would put forth that he HAD to be interested in longer term results, created and nutured over a period of time and while his desk traders may have been trading the normal price action for additional profit, HIS was not an interest in (relatively speaking) a few dollars here and there — HIS was a far different interest, played out over TIME [/B]!
to put it simply, the proof of the pudding OF WHICH I TALK, is which way the price goes and where it ends up ULTIMATELY, NOT the minute to minute profit taking of even the most talented desk trader — hopefully you understand ![/B]

enjoy and trade well


Very interesting…

I think a couple of posters have gone un-necessarily bitter and hostile here. Shakesfx presented a point of view, MP presented his point of view, so why go all acerbic over MPs point of view? In case you dont believe in what he has to offer why not just keep the ph levels balanced?

I am a newbie too:I started about 5 months back-for the first 3 months I was in loss-destroyed 3 5K demo accounts-from about past 2 months I have been profitable every week of trading. I have grown my account by about 20 % each month.

How did I change from being in the red to being in profit?

I chanced upon MPs post in which he talks about the channels and some other s+r topics. Now I dont use his system as a stand alone-in fact that is not a system at all- I use a combo of many concepts, one of which is also price action thingie. My central theme is all systems and concepts and beliefs can be used in complement to each other.

And why the heck do I need to care what “professional traders” are doing? All I need to care about is (in my unique situation) what the price has done all day long (the channels and tech analysis) and see what is it doing immediately (the price action) and place my trade. I do this everyday, and I take out more than my “desired” 20 pips a day! loop infinitum :slight_smile:

Crux of the story- if you have cool stuff to show to the newbies and make them better at this fx game, show them the system, holy grail, concept yada yada etc…but please dont be “Pin Heads”

PS- I am not attacking any one here but I feel very strongly about some one being attacked just because of what he believes in.


my whole post was lost damn! damn! damn!

ok here goes again George Soros shorted the pound because;

uk entereed into the ERM The Exchange Rate Mechanism

when germany became united there was alot of spending and they were printing money which was sending inflation through the roof.

due to that germany raised their interest rate and because of that fact it forced all the other countrys who were tied together in that erm arrangement to raise there interest rates. according to the agreement the currencies were to be pegged within 2 1/4% of each other

soros took advantage of this fact and it was his fundamental knowledge that led him to the beileif that the uk would either a. intentionaly devalue their currency or b. would leave the ERM all together. Soros was aware of the UK’s high unemployment and overall weak economy so he shorted the pound but more than that his influence caused alot of people to join him in shorting.

althought the UK tried to bs him realy into thinking they were going to just raise interest rates and that they stood behind the ERM later that day they cut their rate to 10% thus leaving the ERM and causing a massivbe devaluation to the gbp

It was a decision based on fundamentals that would lead to George Soros to be known as the man who broke the bank of England but who knows maybe he was just using the LRC

johnny —

i made a point about price action, not about fundamentals.

But PLEASE note that i agree fundamentals can and will change trends — i REPEATEDLY STATE THAT CONCEPT AND DID JUST A FEW POSTS DOWN — what i also state is that fundamentals have little to do with the OVERALL trend of a currency, aside from creating some speed bumps along the way, UNTIL SOMETHING LIKE A WAR, DEPRESSION, NUCLEAR HOLOCOST OR THE MCGIVER SISTERS HIT TOWN — THEN all bets are off !

i shall say it again, perhaps people dont like my signature or my avitar, or my right brained method of writing or even the way i part my hair, BUT if the READ what i write, STOP jumping on ONE WORD and take the time to absorb, then i would write a lot less cause i wouldnt have to defend what i never said !

enjoy and trade well


ps — mobs are funny things — they fill with ONE IDEA and no amount of truth, beauty or the american way, not to forget original honesty, will EVER alter their way of thinking !