A big truth about forex - Forex-TSD

dznmrd · #1 (**permalink**) 12-31-2008, 05:37 AM

I realized that the forex market is not a straight moving market. its actually a random moving market...the only straight line is the Moving Average u see....that's what the brokers capitalize on that people will create mechanical systems based on working a straight line indicators based system and hence they would profit from the losses of traders from "which they know" is the random moving market. So we need to be more smarter in our trading approaches, hope this explanation helps and we all work to outsmart the smart ass broker/markets

prasxz · #2 (**permalink**) 12-31-2008, 06:43 AM

nice avatar, yes forex is not a straight moving market.it's a random but not trully random it has a pattern remember 'history repeat it self' , the more your brain train with its pattern the more you can define the trend , we are here to recognize the pattern using what we called indicators

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Forex Indicators Collection

Walander · #3 (**permalink**) 12-31-2008, 07:33 AM

With such a bold title to you thread, I was hoping for more substance in the first post, but like most of these posts, I am always disappointed.

No, Forex isn't random, it will never be, it is fundamentally driven and it will always be. If there is a direction that can be stated, then in by no means is something random, because an objective can be defined.

I would describe Forex more like a drunkard walking home from the bar. He knows where he's going, he understand what he needs to do, but on the way he might hit a couple walls and trash cans, but nonetheless he still arrives home.

dengkane · #4 (**permalink**) 12-31-2008, 01:59 PM

Good post!

I like to use candle charts directly, don't add moving averages, because there are so many period choices, maybe every currency pair have a most suitable moving average period. How do you choose?

dznmrd · #5 (**permalink**) 12-31-2008, 02:11 PM

Quote:

Originally Posted by Walander

With such a bold title to you thread, I was hoping for more substance in the first post, but like most of these posts, I am always disappointed.

No, Forex isn't random, it will never be, it is fundamentally driven and it will always be. If there is a direction that can be stated, then in by no means is something random, because an objective can be defined.

I would describe Forex more like a drunkard walking home from the bar. He knows where he's going, he understand what he needs to do, but on the way he might hit a couple walls and trash cans, but nonetheless he still arrives home.

Well said and i hope its like that ...

Beno · #6 (**permalink**) 12-31-2008, 03:43 PM

IMHO if you look at the "market" yes it's pretty random but you don't trade the market do you. No no no
You trade pairs which are a microscopic part of "the market" created by the Broker/ Interbank/ or who ever and that part has a certain degree of pattern to.

nmx · #7 (**permalink**) 12-31-2008, 04:56 PM

I see what you're taking about dznmrd , it's very hard to establish patterns in forex or maybe any other financial market even in predicting the outcome of fundamental developments and that is because of an ever lasting financial rule that goes back to Adam Smith : when the profits of one field becomes higher than others , Investors will rush to invest in that field making the risks higher , many traders have noticed that cretin strategies work like a charm of an extended period of time and then go south even in auto trading . even news trades must have noticed that the market goes throw entire weeks with having an opposite reaction to the news without any fundamental reason .
Many of the big dogs lost tons of money since the dollar rise in August, while many small traders got rich auto trading the recent volatility , and many of them will latter loss there cloths because they will do what they are doing now in a deferent market conditions.
I'm not saying you should not trade forex, all I'm saying is that the market is alive and changing and you should be alive too, forex is not the kind of business that you can take for granted , it's not like you learned fish and now you gust do what you have learned while your whistling ,anyway one must be optimistic around new year ……. right .

MiniMe · #8 (**permalink**) 12-31-2008, 05:04 PM

Quote:

Originally Posted by Walander

I would describe Forex more like a drunkard walking home from the bar. He knows where he's going, he understand what he needs to do, but on the way he might hit a couple walls and trash cans, but nonetheless he still arrives home.

I love the description

daniellefr · #9 (**permalink**) 01-01-2009, 12:01 PM

I don't think that forex is random. In fact most of the time when you use the trading tools right you can actually see that prices obey the trend lines on the charts. And even when the trend is broken there is not much randomness. After all, if forex was random, we won't be spending so much time on our trading strategies and rules!

increase · #10 (**permalink**) 01-01-2009, 12:25 PM

Quote:

Originally Posted by dznmrd

I realized that the forex market is not a straight moving market. its actually a random moving market...the only straight line is the Moving Average u see....that's what the brokers capitalize on that people will create mechanical systems based on working a straight line indicators based system and hence they would profit from the losses of traders from "which they know" is the random moving market. So we need to be more smarter in our trading approaches, hope this explanation helps and we all work to outsmart the smart ass broker/markets

It is not straight moving, but neither is it random, if it were it would be up and down all over the place completely unpredictable with no recognisable pattern, impossible to interpret, but as most know it moves in waves