My market philosophy
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thread: My market philosophy

  1. #1
    Junior Member Perwz1998's Avatar
    1

    My market philosophy

    You are Welcome!
    I am Alessandro, Italian (so sorry, sometimes I could make some grammar mistakes), 23 years old. I studied IT and since 2010 I've studied markets and I am self-taught concerning them.
    I am here because I've a great skill, I need to make me questions, I would like to see all clear.
    I began 3 years ago with forex, indiors, systems, and much more.
    Yeah I made some profits with but in the end I was not met because I wanted to know why markets proceed.
    My research went through many disagreements, and in the end, it went through the truth. Yeah this is my truth that could differ from yours.
    What is the truth?
    The truth is that markets are manipulated each day, each semester (Asian, European, American).
    Why markets are manipulated?
    They're manipulated since there are subjects that are here to make real profits, and these subjects have enough money to move markets.
    Who are they?
    They're banks, smart currency, market makers, institutionals.
    Who are we?
    We are retail traders.
    It is not important that goes the market, it's important to understand just how, when, why these subjects do what they do.
    From today I shall call them banks.
    We can start from what I said, banks are here to make profits.
    You need to ask yourself, just how can banks make profits?
    Banks make profits playing with us, together with our emotions, our habits.
    Banks understand how we believe they understand our weaknesses.
    An important thing to remember is that humans need more than one affirmation to make a choice.
    Make money on market is 80 percent plogical and 20% difficult work to understand.
    The 20% difficult work is to understand the 80 percent plogy of retail traders.
    Market is created of cycles, when someone is buying, somebody is promoting.

    That's all for today, I need say that I am not a professional trader, I am 23 years old, self-taught.
    In this thread I will post more concept and some charts, maybe all day, it is dependent upon my spare time.
    Hope you will enjoy that, have a great weekend!

    Alessandro

  2. #2
    Junior Member Azucena2121's Avatar
    1
    Hello, Alex..why dont you continue this thread. . ? I've learn something . .
    Please share more...

    btw. . This my view on GU. .

  3. #3
    Hello, I think the market is much more complied than simply being a trap. Big market participants don't try to trap retail traders, even though they may play against one another, trying to profit from different banks losses (in Forex money goes from one hand to another). 1 day bank X plays a hint on bank Y, along with the other day bank Y gets the upper hand. But plays a trick isn't the appropriate word, its more about being right about the markets direction. To be right, each bank has to position itself early enough in the game (as mentioned, buy low sell high)....
    Oh thats interesting. Notably the white line.

  4. #4
    quote Yes, there is intervention from the central banks. Some brokers do operate stops, when quantity is low. That's been going on is markets for around as long as there were stop loss orders. There are a few brokers, and some that begin good and finish bad. Too much temptation to exchange against your clients when you know they're wrong, or you can move the market against them and earn a quick profit! Finding a way to handle this type of risk is a part of trading.
    Thanks Bro, concur with you had said.

  5. #5
    Junior Member Adri5puyi's Avatar
    21
    Alexx90 .... Thank you to the pdf. I shall give it a read. Good to see you again.

  6. #6
    Hi Alessandro,

    Nice thread you started, agreed with most you mentioned, btw perhaps I can learn something from you. I trade S/R and distribution, Fibo, accumulation, daily and pivot I will like to understand how you warrant or determine your entry from the chart you posted? Or, which stage in what timeframe, you determine an entry is valid? Hope you can give some guie to me.

    As for the manipulation part you brought up, I will like to share something in my private opinion, Authorities and Central Banks are the only capable thing of manipulating currency, as they need to control money supply within their unique nations. Local banks and retail brokers, does not control the currency, they create spreads and commission promoting other products, and so on, they make investments, and money is lost by some as well. That is exactly why some agree with manipulation and some not, I think it's about how we place across it.

    Anyhow, it is only my 1 cent, if I am wrong, pls information or ignore. Thanks.

  7. #7
    Junior Member Pepi_07's Avatar
    3
    Hi Alessandro,
    Thanks for the Norges Bank Working Paper. It was great to see again, although I'd read it before quite a while ago.

    I will see that you have put a lot of effort into trying to understand that the FX market and have developed a framework that helps you try to model the market.

    Early on I was very interested in why the market moved as it did. I'm more interested than it goes in how it moves.

    I will tell you from experience with different professional traders, such as a former 27 year veteran of bank trading, a high profile hedge fund manager, the creator former president of one of the largest proprietary trading firms, and the celebrity million dollar trader who is now the current president, that none of these traders understand the markets move because they do.

    A lot of your explanations appear to be somewhat one dimensional, as though there was one trader, or even group of traders, that was moving the market. It might happen during periods of low quantity when they are attempting to run stops, but it isn't likely when the market becomes active. Along with a very liquid, large asset class like the EURUSD is too big to control.

    The scenario from the Norges Bank Paper is much more likely. Retail traders are only 8-10% of the FX market. CTAs and the hedge funds are the drivers of this market. They buysell, from their own brokers (who understand that they are edued ) and the brokers trade at the same direction that transfers price in that direction giving them both a profit.

    Once it reaches a certain degree it activates a market, or buy, sign from traders in a company, which transfers the price back up until it hits another degree which may activate an algo trading reaction. There are so many different players that come in the market at different times for reasons, that nobody knows for sure when or even why! This goes on constantly and creates tendencies and the whipsaws we see.

    During periods of low volatility it's ideal to remain out of this market, since market makers and brokers can control the market (looking for stops to run! ;^) The most important consideration to look for are the recurring patterns and price levels.

    Well I am falling asleep, so I guess I'd better leave it there.

    I value your positive attitude in dealing with a few difficult traders!

    God bless and good luck with your trading!

  8. #8
    Junior Member Pepi_07's Avatar
    3
    Hi Alessandro, Nice thread you started, agreed with most you said, btw perhaps I can learn something from you. I trade distribution and accumulation, Fibo, S/R, daily and weekly pivot I will like to know how you justify or determine your entrance in the chart you posted? Or, which phase in what timeframe, you decide that an entry is valid? Hope that you can give some guie to me. As for the manipulation portion you brought up, I'll like to discuss something in my private opinion, Government and Central Banks are the only capable entity of...
    Yes, there is intervention in the central banks.

    Some brokers do run stops, when quantity is low. That is markets for approximately as long as there have been stop loss orders.

    There are a few good brokers, and some that start nice and finish bad. Too much temptation to exchange against your clients when you know they're wrong, or you can move the market from them and make a fast profit!

    Finding a way to manage this kind of risk is an extremely significant part trading.

  9. #9
    Junior Member hanksipk's Avatar
    17
    quote Yes, there is intervention in the central banks. Some brokers do run stops, when quantity is low. That has been happening is markets for about as long as there were stop loss orders. There are a couple fantastic brokers, and a few that begin good and end bad. Too much temptation to exchange against your clients when you know they are wrong, or you can move the market from them and earn a fast profit! Finding a way to manage this type of risk is a part of trading.
    Which host you mention for safe trading. Name please

  10. #10
    Junior Member Pepi_07's Avatar
    3
    quote which host you mention for secure trading. Name please
    Hello Juisen25,
    I am guessing that you mean broker when you say host.

    I really don't know a lot about non-U.S. brokers since I reside in the U.S. and nearly no non-U.S. broker will open accounts for U.S. citizens because of CFTC restrictions.

    As you're not in the U.S., many U.S. brokers don't apply those restrictions to your account.

    Non-U.S. Brokers:

    The sole broker outside the U.S. that I could open an account with is unregulated, and loed on a Caribbean island, PellucidFX. They've largely good evaluations on ForexPeaceArmy.com The creator, Damon Hunt, looks fair. Hopefully, he won't burn out!

    Global Prime It's regulated (Australia) and one of those principals, Jeremy, is fair and upright. It has the approval of Steve Hopwood. He hates most brokers and their tricks, so Global Prime is likely ok. That is his forum, stevehopwoodforex.com.

    U.S. brokers:

    ATC Brokers, my favorite broker, but they don't provide NinjaTrader, with its easy-to-use range pubs. (obtained tagged by NFA for presenting customers with over $20K accounts into a unqualified intermediary. No one lost any money, and they paid a fine. I read their explanation and it seemed plausible.)

    FXCM (obtained tagged by NFA for giving all negative slippage into the client taking all the positive slippage for the company. They paid a major fine now seem to be attempting to clean up their act.) They offer a lot of alternatives in accounts and platforms, but their spreads are a bit high. They give a NinjaTrader platform with $5K account $500K trading/mo.

    MBTrading, that offers NinjaTrader. They have some unique features, such as paying for limit orders (giving liquidity), and several platforms. It might have changed, although I have heard some complaints about customer support in the past.

    Oanda (no more NinjaTrader) I have had trouble finding information on their site, and their customer support has not always been knowledgeable previously.

    As you probably know, with any broker you should always monitor suspicious account/trading action, and deliver any disputes regarding the broker's interest. If they refuse to fix mistakes, or reply a polite question, withdraw your equity, leave the brokerage and appear elsewhere. In case you have severe issues with withdrawals, and the broker is regulated, you may file a complaint with the regulatory body, the NFA from the U.S.

    Never get married to a broker. Is a thing that is fantastic tor remember!

    Watch out for some who offer commissions and spreads which are too-good-to-be-true to sign up more new traders.

    Watch out for brokers who provide bonuses for signing up.

    This kind of broker will need to play some tricks to create his business model function.

    So the cheapest spreads/no spread, cheapest commission/no commission can actually be a danger sign.

    There are exceptions, Interactive Brokers, as an example, but they are rare.

    Good luck take care!

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