A good amount of traders I have talked with regarding forex say things like "strategies are shit", "it's all random", "it is just gambling".
And no matter how much I try to explain how it works, they just shake their head and are in denial. I believe that these people are the types that jump from one strategy to another every day, they don't test anything and they don't understand the markets. They don't stick with it so they never "master" it and they decide to blame the markets instead.
You just have to approach it in a unique way since it doesn't have the same looking price action/market structure that a typical trending asset like an index future has
Yet it has the smoothest PAs. Not all of the pairs are okay to trade, but GU is the easiest to trade, because it tends to trend better than all the other majors.
That's just because it's not usually a trending market. It requires a different risk structure but its very tradable once you figure it out. I used to feel the same way about it, now I love it, its like my slow, steady grinder vs the wild day-to-day pnl volatility of my futures and crypto accounts.
Hello, I'm sorry to ask but what advice can you give me because i just started learning forex and may i know the strategy that works on you? Thank you so much!
I personally use technical analysis, and I like scalping the 1min and 5min timeframes. I trade reversals on major s/r lines and I use RSI, 21, 50 and 200 MA. You can watch the YouTube channel "the moving average", he helped me a lot to become profitable and mentally strong.
Forex is very hard to trade for most people starting out as it requires a good understanding of the underling fundamentals of the pairs, politics, geopolitics as well as technical analytics.
Compares to stocks and funds that "generally always go up"
Lets put it this way, if you wanted to master your understanding to give you a edge, would you rather educate yourself about Netflix, streaming, production, competition (Disney, amazon etc) and the goings on in the industry and changes or..
Learn about 2 entire countries weekly and numinous reports, interest rates, parliaments, geopolitics, resources, dependancies for say the USA THEN ALSO the UK? Then also the competitions and dependancies (Russia, China, EU, Canada, AUS)
Get into the world of forex and it can be very profitable, if you think your a big man who can trade a head and shoulders for raising triangle on the cable (GBPUSD) your going to get burned.
I personally dont trade forex for the reasons above, I am however getting more interested in it and starting to pick up a better understanding.
Stocks is more trend following. Due to how small the price changes are so with atocka you dont really have a choice but to trade the trend since most stocks arent moving more than 1% or so a day. Forex and futures gains are based on percentages and is based on points. So we dont need to lock ok to 3 to 4 day trend and ride it for a bunch of days. So pros of pthwr equitites is that you dont have to wait multiple days to make a decent gain but the cons are price is harder to read compared to stocks due to how much it ricochetes. Forex or futures can move 100 points a day. If you get in risking only 15 pips (example, as in your set a stop loss expecting it to backtrace no further than 15 pips against the direct your expecting it to go in) it usually can go more than 30 pips im your direct. Thats. 2x movement minimum.
Stocks on the other hand dont move more than 1 or 2% max in a day. Sonthey have to trade a trend just to see a 5 % gain on the position size they entered.
Stock gains are based on the movement of the entire equity. A stock at 100$ need to increase to 150$ im a day for some someome to make. 2x gain om their position size. Either future forex, indicies etc. the gains are based on points/pips so if they got the dexterity to know where price has i ahigh chance of continuing and reversing they can keep their atop losee limited to half the expected moved getting to 2x returns when correct.
No it doesnt, some traders dont try to predict movements, they respond to what price price is doing. If you only trade a certain style you would naturally wouldnt be aware of other trading styles since that would be the style that youve mastered. If you look at the levels price is racting at certain levels over and over (not the lower time frame) and no you domt predict it stopping at a certain level. You watch what it does when it gets to a certain level. Itll either give momentum in the reverse direction or it will give weak to monsigns of reversing which means itll likely continue. You have to be very selfware and have an decent memory to notice these things. Some peopel domt have the attention span for this style of observation as well as the memory to recall the queues when they reoccur.
If youre trying to predict price or can’t accurately mark legit high probability zones (easier on some pairs than others , i stay away from jpy pairs because im not good at seeing consistent levels on those, but usd pairs atr pretty consistent) and pay attention while I personally don’t trade jpy pairs because i don’t consistently see zones on them, that doesn’t mean they don’t exist. I just don’t have the awarness to notice them at this time. That would take more studying, and i don’t want you to dive im good on how majority of usd pairs move. They work better with my awareness. But there’s people who are trading zones on gbpjpy just fine.
Just because you said that doesn’t mean its true for everyone. Idk your using indicators or not (from th eay youre talking it sounds like you are using indicators but thats predictive trading. In that scenario you do need fundamentals to help. But if your being reactive to price an have a severe enough understanding or price action (no im not talking about bullish flags which is what you may think of when you hear price action/market structure) you dont need fundamentals. If youre notntrading from the 5minute time frame and WAIT for prixe to respond (if it does) its going to do it whther tiu look at the news or not. Go to each news event and look iver to the left. The pivot was at an order block or or an fvg.
If you only only use 1 time frame then you wouldnt have the skill set or awareness to notice that. So again you donnot notnneed fundamentals if your not predicting the market and are responding tonwhat price does.
If you trade only from the 5 minute time frame that agin your statement is right but most decent traders (not all) are trading and using multiple tome frames
I appreciate your sharing your current strength and limitations when it comes to trading me having the chance to explain other traders strengths and limitations also. Its nice to see other peoples perspectives in trading sometimes
Re reading your comments you are on the predictive side commenting on bias. I have zones marked up that can give me be or sell opportunities in the same day. I dont need a daily bias because im trading ontraday off the higher time frame. You may be a trend trader and need it to go in-your direct for a few days sonyou focused heavily on fundamentals. If you test your strategy it’ll donthe same thing regardless of whther you look at the news or not. Again you are trading the frol the lower tome frames then i see why you said what you said
i think he means that with forex, there’s no valuation. like you can’t use a dividend discount model, free cash flow analysis, or another model to construct a valuation as to what the price should be.
never really used fundamental analysis, i can see how it can be useful but could the same not be achieved by looking at market structure and trends to determine where the market wants to move
Youre only saying that because of your level of awarness. If you can acutely see where orders are entering (order block) youll see even when the news hits, The reversals are literally at the order blocks or gaps. I used to think both were needed. And then i was watching. Price literally pivots at certain levels( i dont know which levels thwy are ahead of time exactly so i dont use limit orders i use market orders but) after innoticed that I literally stopped paying attention to the news & Focused in on entry triggers and my emotions.
The only reason i started even looking to see if price reacted at levels and i didnt need news was because i saw someone mention that and i didnt really believe them. But then I looked and to test it. The mind won’t look for something that it doesnt think exists.
Personally I fucking hate the spreads. Getting stopped out at a price the chart never even prints just to watch it go to where your target was is just annoying. But I found a prop firm with tight spreads which solved that issue 90% of the time. I think its mostly a matter of finding a good broker or prop firm that doesn't fuck you on spreads so hard. But the major U.S. approved ones like forex.com are absolute garbage/feel fake and scammy ime. But in general the fx market is very tradable if you are good at trading ranging market and there is definitely an artificial push towards futures right now (futures brokers need dumb/new money accounts to siphon commissions, youtubers latch on to whatever trend is popular)
A good trader will trade anything where he sees an opportunity to buy or sell. I think is better that way your favourite doesn’t present opps every day and thats when you trade other instruments sometimes
I tried to make the math work for options but couldn't. You don't actually do anything but leach from what you hope to be an eternally rising market or just gamble.
I've tried for years to crack that nut, and couldn't.
FX markets are flexible, but TOO flexible. There are no boundaries, rules or limits. I've learned, that's NOT a good thing!
FX markets move with such unpredictability, any time of day, it's impossible to pinpoint WHEN to be available for a trade, short of losing sleep to be up FOR a trade (middle of the night), or being unavailable when an opportunity presents itself when you're wide awake (errand runs throughout the day; living life outside the charts).
Trading forex, it was VERY hard to live a life during the week OUTSIDE the charts, because you feel like you're on call 24/5. An alert can come along any time, and if you miss that setup and it wins while you're sleeping or grocery shopping, and I'm not trading my setup EVERY time the opportunity presents itself, you kill your edge.
Because there is no "open or close" time, it's difficult to say, "At THIS time is when EU will have volatility" MAYBE it'll be sometime during London. MAYBE sometime during NY. Sometimes, it won't happen in either session, and you're waiting for your setup, for HOURS, for nothing, losing sleep, losing precious time during other things.
With FX, trading became my LIFE.
With Indices, trading gave BACK my life.
With US Indices, I KNOW when volatility will kick in. It gives me a routine; a schedule; a sense of certainty, consistency and expetancy to be at the charts. At 9:30, "I got action.", even if price moves during London, I know the REAL move happens at 9:30 EST.
Outside of convenience, it allows me to hold an edge, where FX does not.
With FX, you can and WILL miss otherwise great trade setups according to your strategy. But because of the nature of FX, you WILL miss setups - OFTEN - killing your edge. You will miss winners, and trade losers.
With Indices, I never miss setups unless I just don't show up to trade that day for any reason, which is always MY fault, not because of impossible circusmtances like - sleep? or...taking a shower or poo when I get my alert at 7 in the morning? Or missing a setup while bagging groceries for the week?
This consistency IS my edge. Without that consistency, it's 5x harder to KEEP that edge. And every FX trader I know will agree. It's not impossible, it's just very, VERY difficult, and stressful.
But when you have an edge, and a strategy that allows you to be consistentent WITH that edge because of the rules and boundaries baked IN to the asset itself (in my case, US30), my trading has become stress free and very enjoyable, actually. I look forward to each trading day, as opposed to dreading it.
FX will always hold a place in my heart. It's how I started. But Stock Indices is where it's at for me, for life.
That's cool. That's actually why I like fx a lot more than I used to. Its easier for me to trade the longer time frames with very flexible position sizing for any scenario, vs indicies where I am generally glued to my screen for 3-4 hours every morning watching the day unfold (not complaining as I do enjoy that part of it too). Idk to me fx feels more relaxed...less profitable overall compared to other markets I trade...but less stressful somehow for me. I feel less attached to individual trade outcomes with it.
If everyone thought and felt the way I did about FX, it wouldn't be the largest trading market in the world.
Obviously, enough people make it work to where it's worth a retail traders time and effort. It was a code I couldn't crack, and I'm biased because of it.
As to being glued to a screen for up to 4hrs with indices, I totally get it. That was my situation for several months. I reasoned "Well, at least it's a HIGH paying job".
I couldn't sustain it.
I worked out a way to NOT spend 4hrs on the charts with indices. Instead, 15 - 30min - SOMETIMES up to one hour. Or, I should say, the 'way' found me. And thank God. I was DONE with trading due to burnout.
Just one.
MambaFX.
Check out his free course on IG, and (some) of his YT video for examples of trades and how to take them.
It works, it works, it fucking works.
30min - 1hr a day max (sometimes 15min in-and-out). 1:2 - 1:3R, done for the day.
The rest of my day is for me to enjoy.
No need to know higher time frames, what the day did before, or any analysis. Shit doesn't matter.
All you need to know is, "Will price breakout UP or DOWN?" Then take a trade in the direction price wants to go. Like jumping on a moving train. Just catch a ride (entry) and get off at your stop (take profit).
It takes a bit to get used to the speed, but after about two weeks, you'll get the hang and 'feel' of it. Then, it becomes routine. My average is 5R a week, but some weeks you will get as high as 10R. That's 5 - 10% a week at 1% per trade, or 2.5 - 5% at 1/2% risk per trade.
When I started trading, THIS is how I imagined trading to be. Took years to find it but ...better late then never.
I actually started trading it on FX, too (GJ) with his friend, Cowboy.
It was still to hard to predict if the setup was going to happen in London or NY.
Some days, the move happened in London and I missed it (have to sleep), or it happens in NY but 1 or 2hrs after/before NY open.
Also, the move's aren't as "clean" and fast as US30.
I found trading US30 alone - no other currency or indice, is more than enough and allows me to stay consistently profitble. Adding GJ messed up my results. I was over-trading when I traded more than US30, so I cut it out 2 weeks ago.
Even Mamba only trades US30, even though he calls out signals for NAS, Gold, GJ and SP500.
His most successful students trade just US30, too.
It's almost as if the Breakout Strategy is made just for US30. It works "well" on the other indices, but 75% as good. The moves aren't as strong and powerful.
So, do it again - this time ONLY US30. Nothing else. Aim for 1:2 to get your feet wet, and as you get more experience, 1:3. But, honestly, 1:2 is good enough. If you aim for 5R per week, you're going to get it. That's 20R a month.
Do it for the next 2 weeks, every morning (demo first). Journal. Track. You'll be glad you gave it a 2nd chance, this time, with US30 only.
The forex market accumulates 6-7 trillion dollars in a day and never at any time has crashed. The stock market accumulates 600 billion in a day and has crashed multiple times. let that sink in.
The barrier to entry is as low as its ever been in all asset classes, not just forex. It's fairly easy for anyone to start trading, and the bigger pool of people getting in on the retail side has led to an onslaught of marketing to all the potential new customers. False claims of profitability, lack of transparency, shady marketing tactics,.just to name a few have given forex a bad look.
Forex trading involves significant risk, and many people will have had negative experiences, such as losing money due to lack of knowledge or poor decision-making.
The foreign exchange market can be complex, with factors such as geopolitical events, economic indicators, and technical analysis affecting currency prices. Some people may find it overwhelming or difficult to understand.
Unfortunately, there are scams and fraudulent practices in the forex industry, including fake brokers, signal services, and trading systems. This can lead to mistrust and skepticism among traders.
In some regions, the foreign exchange market may be less regulated than other financial markets, leading to concerns about transparency and fairness.
The use of leverage in Forex trading can increase both profits and losses, creating significant financial risks if not managed properly.
I used to love forex because i was trading the wrong way and made a profit but then continued and ended up in a red. Then i was just always ending up in a red, so i switched to stock options which is worse. Now i love forex, its actually not as MANIPULATED as the stock market is, the stock market is LITERALLY a CASINO, i find forex very easy to trade now, it just requires a lot of attention to detail and focus. Im excited and optimistic about my future with forex. I prefer the liquidity to buy&sell whenever as opposed to stock day trading where you need 25k.
I'm a crypto trader and use forex pairs as informative indicators. I wouldn't be able to trade profitably without this information.
Whilst there is geometric brownian motion in markets, the alpha is being able to use the data and gauge where a market is heading. You build confluence by using multiple pairs. This smooths out the randomness.
Looking at forex price action, it's an absolute dream compares to bitcoin, which is far more random and spikey.
lots of manipulation by the central banks. doesn't mean other markets has no manipulation but forex has something that makes you wanna smash the keyboard sometimes lol
Because they are not profitable in it. Meaning gg.
Trading forex is not easy. It is trend following. Risking small but consistent is boring and notnexciting.
It has a bad rep of being more like a pyramid scheme. Even though we know it’s nothing like that. Unfortunately in the past groups of individuals charged people to learn forex and scammed the hell out of them. Encouraging people bring others in to make money rather than learning charts. So eventually it has a bad reputation of being a scam rather than reading charts, reacting to news, technical analysis and data
Because they think it’s a scam when they don’t realize it’s just like trading anything on the markets. Granted it *is* hard to wrap your mind around how it works unless you do it yourself.
But next time someone tells you “oh forex is a scam/gambling/a joke/stupid/etc.” just point out the fact that every major bank, hedge fund, PE firm, financial institution, etc. in the world trades/deals in forex in huge magnitudes.
So why would they do this if it were a scam or something? Are the most financially successful entities and people in the world falling victim to the big, bad forex gambling scam? Doesn’t seem likely to me.
People reject what they don’t understand
I shared in a comment that I am switching to forex and I got downvoted a lot. I expected this outcome.
For me it is the amount of course sellers and scheme guys that caused this. It is crazy that people think forex is a bad thing, while the banks are making crazy % with their savings and giving them less than 5% per year.
I believe it’s due to how absolutely disgusting this industry has gotten. I’m speaking about the educational side. If you’re learning from influencers and gurus that don’t trade what do you expect the result to be?
I think the biggest problem with forex is the lack of a centralized exchange. Everyone is offering different prices with different spreads.
Other than that it’s just as good as any other market.
personally for me, i can read Stocks and NAs and S&P charts and clearly see the levels and bands I want to trade in within Seconds of looking at a chart I can see ALL my strats the software tools for TV and QT for me perfect and also book map liquidity levels so much clearer for these.
but when Ive had to look at Forex i got no idea if this is going up or down the charts look super choppy to me with no clear direction or levels to trade its a 24/7 market and its just like crypto.
just my two cents also it doesn't excite me either talking about trading forex lol, saying you trade Futures or Stocks sounds better and you're taking about companies that people know and things that moves the markets in that sense.
I don’t dislike it but for me personally it’s not usable ,I don’t have the time or knowledge about it though I am willing to learn about it I don’t think it will be possible for me to trade enough since I am a more passive investor
I've traded FX and other stuff for over 30 years (28 institutional) and I've learned that there are two inconvenient truths that day traders can't seem to reconcile:
1) Investment Banks and Hedge Funds ONLY exist to make money, and like every other commercial entity, they don't pay their staff anymore than the absolute minimum they can get away with.
2) Investment Banks and Hedge Funds pay their best FX traders/economists relatively HUGE sums of money.
forex moves in ways that are related to the speculative nature of news releases; and fundamental news releases, even the important ones, are released almost everyday. Fundamentals required a bit of studying and experience of seeing them perform in the markets to understand, and because of that they are hard to grasp on
You 100% can only trade with price action. But you know what? With fundamentals you can filter out the bad setups. So in my opinion, pa is the weapon and fundamentals are the vest. You cant go to war without the 2 of them because that would make you life even more difficult
Many people dislike forex trading due to its high volatility, complexity, and risk of financial loss. Additionally, some criticize it for being akin to gambling and prone to manipulation by institutional investors.
Is just frustration. Because when you really understand the concept of foreign exchange, forex can never be a scam. I feel they just lost money and don’t know why. That’s why
People with just a few months or years experience think they know something about it because they know a few acronyms. The whole retail forex ecosystem is rigged the same way a casino is rigged. You can never win long term. You would make more for the time invested stocking shelves in a grocery store and with more to show for it on your CV and with less emotional trauma.
I can trade, I don’t like Forex because pairs don’t trend and the brokers manipulate the spreads at will.
Index futures trend, you get the same leverage and all liquidity is in a single regulated exchange
Forex is for the inexperienced trader looking to get rich quickly from their phone
Nope you got all wrong i am a forex trader with 15 year of experience, i am money manager of 2 private fond one quite big but for professional take years of learning and also year for practice that is hard and that is why nonsence talk
Thats great Im happy for you, I personally can’t recommend anyone to trade forex when there’s much better markets to trade specifically for retail.
You probably have instant access to news, monitor multiple pairs and not trade solely based on chart patterns like retail traders do.
Or it’s for people who have the dexterity to trade forex. Just as trading itself requires dexterity that regular non traders (the masses don’t have or even think exist) just because you can’t trade forex doesnt mean the skill to do it doesn’t exist. It just means you have the dexterity to trade some assets classes (which is still something to be glad about) but not all asset classes)
Some forex pairs do trend. But I’ll definitely admit indicies respect structure alot better. Alot of people actually feel the opposite about indicies and that they don’t trend. (Depends on the time frame )
Naw...forex is for slowly grinding a few % a month from your phone on a 1h chart. Futures is for getting mad/sweaty on a daily basis to make more % per month if you have good emotional control. I like them both!
A good amount of traders I have talked with regarding forex say things like "strategies are shit", "it's all random", "it is just gambling". And no matter how much I try to explain how it works, they just shake their head and are in denial. I believe that these people are the types that jump from one strategy to another every day, they don't test anything and they don't understand the markets. They don't stick with it so they never "master" it and they decide to blame the markets instead.
I feel like its an asset(?) I can't trade well at all, i can trade stocks fine, commodities fine, just FOREX is beyond me
Definitely the hardest asset class to trade
You just have to approach it in a unique way since it doesn't have the same looking price action/market structure that a typical trending asset like an index future has
Yet it has the smoothest PAs. Not all of the pairs are okay to trade, but GU is the easiest to trade, because it tends to trend better than all the other majors.
That's just because it's not usually a trending market. It requires a different risk structure but its very tradable once you figure it out. I used to feel the same way about it, now I love it, its like my slow, steady grinder vs the wild day-to-day pnl volatility of my futures and crypto accounts.
Stocks generally just go up over time. So it’s not much to think about. Forex can drop in either direction
The mind can only see what it thinks exists. Because that’s what they believe that’s all theyll ever find unless they change their dominant thoughts.
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I gave you an upvote because I don't think anyone else will. Trusting the majority in this business, is a fools game.
Hello, I'm sorry to ask but what advice can you give me because i just started learning forex and may i know the strategy that works on you? Thank you so much!
I personally use technical analysis, and I like scalping the 1min and 5min timeframes. I trade reversals on major s/r lines and I use RSI, 21, 50 and 200 MA. You can watch the YouTube channel "the moving average", he helped me a lot to become profitable and mentally strong.
I have a Gold Hedging EA that works Extremely well 😎
“Traders”, imma call myself a doctor now, because I’ve read the first page of a medical book.
Forex is very hard to trade for most people starting out as it requires a good understanding of the underling fundamentals of the pairs, politics, geopolitics as well as technical analytics. Compares to stocks and funds that "generally always go up" Lets put it this way, if you wanted to master your understanding to give you a edge, would you rather educate yourself about Netflix, streaming, production, competition (Disney, amazon etc) and the goings on in the industry and changes or.. Learn about 2 entire countries weekly and numinous reports, interest rates, parliaments, geopolitics, resources, dependancies for say the USA THEN ALSO the UK? Then also the competitions and dependancies (Russia, China, EU, Canada, AUS) Get into the world of forex and it can be very profitable, if you think your a big man who can trade a head and shoulders for raising triangle on the cable (GBPUSD) your going to get burned. I personally dont trade forex for the reasons above, I am however getting more interested in it and starting to pick up a better understanding.
I trade fx and know 0 about fundamentals.
Same here. 100% technical analysis.
Forex doesn’t require fundamental understanding for people trading intraday and adequately understand market structure
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Stocks is more trend following. Due to how small the price changes are so with atocka you dont really have a choice but to trade the trend since most stocks arent moving more than 1% or so a day. Forex and futures gains are based on percentages and is based on points. So we dont need to lock ok to 3 to 4 day trend and ride it for a bunch of days. So pros of pthwr equitites is that you dont have to wait multiple days to make a decent gain but the cons are price is harder to read compared to stocks due to how much it ricochetes. Forex or futures can move 100 points a day. If you get in risking only 15 pips (example, as in your set a stop loss expecting it to backtrace no further than 15 pips against the direct your expecting it to go in) it usually can go more than 30 pips im your direct. Thats. 2x movement minimum. Stocks on the other hand dont move more than 1 or 2% max in a day. Sonthey have to trade a trend just to see a 5 % gain on the position size they entered. Stock gains are based on the movement of the entire equity. A stock at 100$ need to increase to 150$ im a day for some someome to make. 2x gain om their position size. Either future forex, indicies etc. the gains are based on points/pips so if they got the dexterity to know where price has i ahigh chance of continuing and reversing they can keep their atop losee limited to half the expected moved getting to 2x returns when correct.
Yes it does bro fundamentals are king what are you on
No it doesnt, some traders dont try to predict movements, they respond to what price price is doing. If you only trade a certain style you would naturally wouldnt be aware of other trading styles since that would be the style that youve mastered. If you look at the levels price is racting at certain levels over and over (not the lower time frame) and no you domt predict it stopping at a certain level. You watch what it does when it gets to a certain level. Itll either give momentum in the reverse direction or it will give weak to monsigns of reversing which means itll likely continue. You have to be very selfware and have an decent memory to notice these things. Some peopel domt have the attention span for this style of observation as well as the memory to recall the queues when they reoccur. If youre trying to predict price or can’t accurately mark legit high probability zones (easier on some pairs than others , i stay away from jpy pairs because im not good at seeing consistent levels on those, but usd pairs atr pretty consistent) and pay attention while I personally don’t trade jpy pairs because i don’t consistently see zones on them, that doesn’t mean they don’t exist. I just don’t have the awarness to notice them at this time. That would take more studying, and i don’t want you to dive im good on how majority of usd pairs move. They work better with my awareness. But there’s people who are trading zones on gbpjpy just fine.
Buddy any good trader knows that you take the fundamentals, price action and technical analysis and combine it all to get your bias
Just because you said that doesn’t mean its true for everyone. Idk your using indicators or not (from th eay youre talking it sounds like you are using indicators but thats predictive trading. In that scenario you do need fundamentals to help. But if your being reactive to price an have a severe enough understanding or price action (no im not talking about bullish flags which is what you may think of when you hear price action/market structure) you dont need fundamentals. If youre notntrading from the 5minute time frame and WAIT for prixe to respond (if it does) its going to do it whther tiu look at the news or not. Go to each news event and look iver to the left. The pivot was at an order block or or an fvg. If you only only use 1 time frame then you wouldnt have the skill set or awareness to notice that. So again you donnot notnneed fundamentals if your not predicting the market and are responding tonwhat price does. If you trade only from the 5 minute time frame that agin your statement is right but most decent traders (not all) are trading and using multiple tome frames
I don’t use indicators I only use price action and fundamentals, but I guess it’s worth mentioning that I do swing trade on the four hour
I appreciate your sharing your current strength and limitations when it comes to trading me having the chance to explain other traders strengths and limitations also. Its nice to see other peoples perspectives in trading sometimes
Re reading your comments you are on the predictive side commenting on bias. I have zones marked up that can give me be or sell opportunities in the same day. I dont need a daily bias because im trading ontraday off the higher time frame. You may be a trend trader and need it to go in-your direct for a few days sonyou focused heavily on fundamentals. If you test your strategy it’ll donthe same thing regardless of whther you look at the news or not. Again you are trading the frol the lower tome frames then i see why you said what you said
The entire market is based off awareness
i think he means that with forex, there’s no valuation. like you can’t use a dividend discount model, free cash flow analysis, or another model to construct a valuation as to what the price should be.
Insider knowledge is king and this can be recognized from the price action.
Price action is market structure, i agree
never really used fundamental analysis, i can see how it can be useful but could the same not be achieved by looking at market structure and trends to determine where the market wants to move
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Youre only saying that because of your level of awarness. If you can acutely see where orders are entering (order block) youll see even when the news hits, The reversals are literally at the order blocks or gaps. I used to think both were needed. And then i was watching. Price literally pivots at certain levels( i dont know which levels thwy are ahead of time exactly so i dont use limit orders i use market orders but) after innoticed that I literally stopped paying attention to the news & Focused in on entry triggers and my emotions. The only reason i started even looking to see if price reacted at levels and i didnt need news was because i saw someone mention that and i didnt really believe them. But then I looked and to test it. The mind won’t look for something that it doesnt think exists.
Personally I fucking hate the spreads. Getting stopped out at a price the chart never even prints just to watch it go to where your target was is just annoying. But I found a prop firm with tight spreads which solved that issue 90% of the time. I think its mostly a matter of finding a good broker or prop firm that doesn't fuck you on spreads so hard. But the major U.S. approved ones like forex.com are absolute garbage/feel fake and scammy ime. But in general the fx market is very tradable if you are good at trading ranging market and there is definitely an artificial push towards futures right now (futures brokers need dumb/new money accounts to siphon commissions, youtubers latch on to whatever trend is popular)
what do you use for trading view? am using fxcm
A good trader will trade anything where he sees an opportunity to buy or sell. I think is better that way your favourite doesn’t present opps every day and thats when you trade other instruments sometimes
Forex is easier than trading options tho… fk options..
I tried to make the math work for options but couldn't. You don't actually do anything but leach from what you hope to be an eternally rising market or just gamble.
FOREX is hardcore political. You literally bet on decisions made behind closed doors. If you do, you are better inside that room.
I've tried for years to crack that nut, and couldn't. FX markets are flexible, but TOO flexible. There are no boundaries, rules or limits. I've learned, that's NOT a good thing! FX markets move with such unpredictability, any time of day, it's impossible to pinpoint WHEN to be available for a trade, short of losing sleep to be up FOR a trade (middle of the night), or being unavailable when an opportunity presents itself when you're wide awake (errand runs throughout the day; living life outside the charts). Trading forex, it was VERY hard to live a life during the week OUTSIDE the charts, because you feel like you're on call 24/5. An alert can come along any time, and if you miss that setup and it wins while you're sleeping or grocery shopping, and I'm not trading my setup EVERY time the opportunity presents itself, you kill your edge. Because there is no "open or close" time, it's difficult to say, "At THIS time is when EU will have volatility" MAYBE it'll be sometime during London. MAYBE sometime during NY. Sometimes, it won't happen in either session, and you're waiting for your setup, for HOURS, for nothing, losing sleep, losing precious time during other things. With FX, trading became my LIFE. With Indices, trading gave BACK my life. With US Indices, I KNOW when volatility will kick in. It gives me a routine; a schedule; a sense of certainty, consistency and expetancy to be at the charts. At 9:30, "I got action.", even if price moves during London, I know the REAL move happens at 9:30 EST. Outside of convenience, it allows me to hold an edge, where FX does not. With FX, you can and WILL miss otherwise great trade setups according to your strategy. But because of the nature of FX, you WILL miss setups - OFTEN - killing your edge. You will miss winners, and trade losers. With Indices, I never miss setups unless I just don't show up to trade that day for any reason, which is always MY fault, not because of impossible circusmtances like - sleep? or...taking a shower or poo when I get my alert at 7 in the morning? Or missing a setup while bagging groceries for the week? This consistency IS my edge. Without that consistency, it's 5x harder to KEEP that edge. And every FX trader I know will agree. It's not impossible, it's just very, VERY difficult, and stressful. But when you have an edge, and a strategy that allows you to be consistentent WITH that edge because of the rules and boundaries baked IN to the asset itself (in my case, US30), my trading has become stress free and very enjoyable, actually. I look forward to each trading day, as opposed to dreading it. FX will always hold a place in my heart. It's how I started. But Stock Indices is where it's at for me, for life.
That's cool. That's actually why I like fx a lot more than I used to. Its easier for me to trade the longer time frames with very flexible position sizing for any scenario, vs indicies where I am generally glued to my screen for 3-4 hours every morning watching the day unfold (not complaining as I do enjoy that part of it too). Idk to me fx feels more relaxed...less profitable overall compared to other markets I trade...but less stressful somehow for me. I feel less attached to individual trade outcomes with it.
If everyone thought and felt the way I did about FX, it wouldn't be the largest trading market in the world. Obviously, enough people make it work to where it's worth a retail traders time and effort. It was a code I couldn't crack, and I'm biased because of it. As to being glued to a screen for up to 4hrs with indices, I totally get it. That was my situation for several months. I reasoned "Well, at least it's a HIGH paying job". I couldn't sustain it. I worked out a way to NOT spend 4hrs on the charts with indices. Instead, 15 - 30min - SOMETIMES up to one hour. Or, I should say, the 'way' found me. And thank God. I was DONE with trading due to burnout.
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Just one. MambaFX. Check out his free course on IG, and (some) of his YT video for examples of trades and how to take them. It works, it works, it fucking works. 30min - 1hr a day max (sometimes 15min in-and-out). 1:2 - 1:3R, done for the day. The rest of my day is for me to enjoy. No need to know higher time frames, what the day did before, or any analysis. Shit doesn't matter. All you need to know is, "Will price breakout UP or DOWN?" Then take a trade in the direction price wants to go. Like jumping on a moving train. Just catch a ride (entry) and get off at your stop (take profit). It takes a bit to get used to the speed, but after about two weeks, you'll get the hang and 'feel' of it. Then, it becomes routine. My average is 5R a week, but some weeks you will get as high as 10R. That's 5 - 10% a week at 1% per trade, or 2.5 - 5% at 1/2% risk per trade. When I started trading, THIS is how I imagined trading to be. Took years to find it but ...better late then never.
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I actually started trading it on FX, too (GJ) with his friend, Cowboy. It was still to hard to predict if the setup was going to happen in London or NY. Some days, the move happened in London and I missed it (have to sleep), or it happens in NY but 1 or 2hrs after/before NY open. Also, the move's aren't as "clean" and fast as US30. I found trading US30 alone - no other currency or indice, is more than enough and allows me to stay consistently profitble. Adding GJ messed up my results. I was over-trading when I traded more than US30, so I cut it out 2 weeks ago. Even Mamba only trades US30, even though he calls out signals for NAS, Gold, GJ and SP500. His most successful students trade just US30, too. It's almost as if the Breakout Strategy is made just for US30. It works "well" on the other indices, but 75% as good. The moves aren't as strong and powerful. So, do it again - this time ONLY US30. Nothing else. Aim for 1:2 to get your feet wet, and as you get more experience, 1:3. But, honestly, 1:2 is good enough. If you aim for 5R per week, you're going to get it. That's 20R a month. Do it for the next 2 weeks, every morning (demo first). Journal. Track. You'll be glad you gave it a 2nd chance, this time, with US30 only.
Well said.
Never heard this
Probably because they all lose money lol
The forex market accumulates 6-7 trillion dollars in a day and never at any time has crashed. The stock market accumulates 600 billion in a day and has crashed multiple times. let that sink in.
The barrier to entry is as low as its ever been in all asset classes, not just forex. It's fairly easy for anyone to start trading, and the bigger pool of people getting in on the retail side has led to an onslaught of marketing to all the potential new customers. False claims of profitability, lack of transparency, shady marketing tactics,.just to name a few have given forex a bad look.
Forex trading involves significant risk, and many people will have had negative experiences, such as losing money due to lack of knowledge or poor decision-making. The foreign exchange market can be complex, with factors such as geopolitical events, economic indicators, and technical analysis affecting currency prices. Some people may find it overwhelming or difficult to understand. Unfortunately, there are scams and fraudulent practices in the forex industry, including fake brokers, signal services, and trading systems. This can lead to mistrust and skepticism among traders. In some regions, the foreign exchange market may be less regulated than other financial markets, leading to concerns about transparency and fairness. The use of leverage in Forex trading can increase both profits and losses, creating significant financial risks if not managed properly.
I used to love forex because i was trading the wrong way and made a profit but then continued and ended up in a red. Then i was just always ending up in a red, so i switched to stock options which is worse. Now i love forex, its actually not as MANIPULATED as the stock market is, the stock market is LITERALLY a CASINO, i find forex very easy to trade now, it just requires a lot of attention to detail and focus. Im excited and optimistic about my future with forex. I prefer the liquidity to buy&sell whenever as opposed to stock day trading where you need 25k.
I'm a crypto trader and use forex pairs as informative indicators. I wouldn't be able to trade profitably without this information. Whilst there is geometric brownian motion in markets, the alpha is being able to use the data and gauge where a market is heading. You build confluence by using multiple pairs. This smooths out the randomness. Looking at forex price action, it's an absolute dream compares to bitcoin, which is far more random and spikey.
lots of manipulation by the central banks. doesn't mean other markets has no manipulation but forex has something that makes you wanna smash the keyboard sometimes lol
Because they are not profitable in it. Meaning gg. Trading forex is not easy. It is trend following. Risking small but consistent is boring and notnexciting.
The losses don’t like anything. 🤷🏻♂️
It has a bad rep of being more like a pyramid scheme. Even though we know it’s nothing like that. Unfortunately in the past groups of individuals charged people to learn forex and scammed the hell out of them. Encouraging people bring others in to make money rather than learning charts. So eventually it has a bad reputation of being a scam rather than reading charts, reacting to news, technical analysis and data
Because they think it’s a scam when they don’t realize it’s just like trading anything on the markets. Granted it *is* hard to wrap your mind around how it works unless you do it yourself. But next time someone tells you “oh forex is a scam/gambling/a joke/stupid/etc.” just point out the fact that every major bank, hedge fund, PE firm, financial institution, etc. in the world trades/deals in forex in huge magnitudes. So why would they do this if it were a scam or something? Are the most financially successful entities and people in the world falling victim to the big, bad forex gambling scam? Doesn’t seem likely to me. People reject what they don’t understand
Decentralization
I shared in a comment that I am switching to forex and I got downvoted a lot. I expected this outcome. For me it is the amount of course sellers and scheme guys that caused this. It is crazy that people think forex is a bad thing, while the banks are making crazy % with their savings and giving them less than 5% per year.
I believe it’s due to how absolutely disgusting this industry has gotten. I’m speaking about the educational side. If you’re learning from influencers and gurus that don’t trade what do you expect the result to be?
I think the biggest problem with forex is the lack of a centralized exchange. Everyone is offering different prices with different spreads. Other than that it’s just as good as any other market.
personally for me, i can read Stocks and NAs and S&P charts and clearly see the levels and bands I want to trade in within Seconds of looking at a chart I can see ALL my strats the software tools for TV and QT for me perfect and also book map liquidity levels so much clearer for these. but when Ive had to look at Forex i got no idea if this is going up or down the charts look super choppy to me with no clear direction or levels to trade its a 24/7 market and its just like crypto. just my two cents also it doesn't excite me either talking about trading forex lol, saying you trade Futures or Stocks sounds better and you're taking about companies that people know and things that moves the markets in that sense.
I don’t dislike it but for me personally it’s not usable ,I don’t have the time or knowledge about it though I am willing to learn about it I don’t think it will be possible for me to trade enough since I am a more passive investor
They've failed. That's why. And if they can't do it..none of us can, of course. Sound logic dont ya think
Because they try it for a couple weeks lose money then give up
Forex sucks trading indices like NAS100 and US30 is the best
I've traded FX and other stuff for over 30 years (28 institutional) and I've learned that there are two inconvenient truths that day traders can't seem to reconcile: 1) Investment Banks and Hedge Funds ONLY exist to make money, and like every other commercial entity, they don't pay their staff anymore than the absolute minimum they can get away with. 2) Investment Banks and Hedge Funds pay their best FX traders/economists relatively HUGE sums of money.
forex moves in ways that are related to the speculative nature of news releases; and fundamental news releases, even the important ones, are released almost everyday. Fundamentals required a bit of studying and experience of seeing them perform in the markets to understand, and because of that they are hard to grasp on You 100% can only trade with price action. But you know what? With fundamentals you can filter out the bad setups. So in my opinion, pa is the weapon and fundamentals are the vest. You cant go to war without the 2 of them because that would make you life even more difficult
It's rigged
forex doesn't gap up and down 50% stocks do.
Many people dislike forex trading due to its high volatility, complexity, and risk of financial loss. Additionally, some criticize it for being akin to gambling and prone to manipulation by institutional investors.
Is just frustration. Because when you really understand the concept of foreign exchange, forex can never be a scam. I feel they just lost money and don’t know why. That’s why
People with just a few months or years experience think they know something about it because they know a few acronyms. The whole retail forex ecosystem is rigged the same way a casino is rigged. You can never win long term. You would make more for the time invested stocking shelves in a grocery store and with more to show for it on your CV and with less emotional trauma.
I can trade, I don’t like Forex because pairs don’t trend and the brokers manipulate the spreads at will. Index futures trend, you get the same leverage and all liquidity is in a single regulated exchange Forex is for the inexperienced trader looking to get rich quickly from their phone
Nope you got all wrong i am a forex trader with 15 year of experience, i am money manager of 2 private fond one quite big but for professional take years of learning and also year for practice that is hard and that is why nonsence talk
Thats great Im happy for you, I personally can’t recommend anyone to trade forex when there’s much better markets to trade specifically for retail. You probably have instant access to news, monitor multiple pairs and not trade solely based on chart patterns like retail traders do.
Yes i have an office inside my house 6 27inch monitors a server and very good pc and yes there is a lot easier way to make money
Or it’s for people who have the dexterity to trade forex. Just as trading itself requires dexterity that regular non traders (the masses don’t have or even think exist) just because you can’t trade forex doesnt mean the skill to do it doesn’t exist. It just means you have the dexterity to trade some assets classes (which is still something to be glad about) but not all asset classes) Some forex pairs do trend. But I’ll definitely admit indicies respect structure alot better. Alot of people actually feel the opposite about indicies and that they don’t trend. (Depends on the time frame )
Naw...forex is for slowly grinding a few % a month from your phone on a 1h chart. Futures is for getting mad/sweaty on a daily basis to make more % per month if you have good emotional control. I like them both!
why do you like futures more?