I am totally new to Forex and rely on others who supposedly know what they are doing. However, it seems that whenever I follow a so-called expert’s advice, just the opposite results occur.
Who really knows the market, or where can sound advice for each day be found?
Thank you.
Please remember that nobody really knows what exactly the markets are doing. Nobody, not even the big, big banks with their gazillions of cash and super-powered computers. Proof: If anybody would have the one perfect ‘holy grail’ system, the markets would collapse immediately, because this one guy would accumulate the worlds whole money in a very short time.
When you want to go into forex or other trading, MoneyManagement and RiskManagement should be the very first thing to think about. Why? Because every trading decision can go in the wrong direction (as you have already learned). The ONE KEY to trading is: Look for trades with chance/risk ratio as high as possible. Why? Imagine you have a probability of 50% of making a good trade. You choose your positions, stops and TPs in such a way that you lose 1% of your equity on a losing trade, and win 2% on a winning trade. In the long term, you make 0.5% per trade.
You might say: Hey, 50% hit ratio, whats that? What kind of loser is trading like this? I want to have hit ratios of 80%, 90% or more! You might be surprised, but professional traders usually have a hit ratios of only around 50%. The question is: Do you want to be right, or do you want to earn money?
Please think very carefully about what I’ve just wrote. When you understand it, you have learned the most important secret to trading. What kind of specific method you then employ? This is left to your own taste.
For your question about ‘experts’ and ‘daily advice’: Please think that when an expert tells you what to buy, the opportunity window usually is already over. The best (in my opinion only) way of successful trading is to learn everything by oneself. Read and understand the babypips school. And prepare for a LONG time of intense studies of the markets. Does this sound like hard, hard work? Sorry, it is. There is no shortcut. Trading is no easy money. It may sound harsh, but everybody who tells you different is a liar.
Thanks very much for your candid advice. I appreciate your honesty and hope to learn more so I don’t have to rely on “experts”.
Thanks again.
Best advice to follow is your own. Once your able to make good educated decisions of course.
Have you gone through the free Babypips school? If not, that’s a good place to start, as it will give you a good overview of the Forex market. You can then expand your knowledge by asking questions in the forums and will be better able to determine who knows what they’re talking about and who doesn’t.
Remember, “everybody’s an expert”. :rolleyes:
Terry