Why Trading Forex is so Difficult – Randomness in the Markets: Clusters of Bad and Good Luck

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Why Trading Forex is so Difficult: Randomness in the Markets: Clusters of Bad and Good Luck. David Paul, Financial Trader comments. If you found value in watching this video, PLEASE LIKE AND SHARE so we can do more! It is always my understanding that it is difficult to make money long term when trading currencies and indices – how do you manage? Most trend following systems have less than a 50% correct hit rate. This means that you get a series of losing trades from time-to-time – how good would you be with executing your system with precision when you get 5 losing trades in a row.

Why Trading Forex is so Difficult - Randomness in the Markets: Clusters of Bad and Good Luck

● We interview traders and educators regularly. So Subscribe if you want to learn while being entertained.
✔ Please like the video and comment if you enjoyed - it helps a lot!
● To Trade forex we recommend InterTrader No Dealing Desk platform: http://www.financial-spread-betting.com/intertrader/intertrader.html
Why Trading Forex is so Difficult: Randomness in the Markets: Clusters of Bad and Good Luck. David Paul, Financial Trader comments. If you found value in watching this video, PLEASE LIKE AND SHARE so we can do more! It is always my understanding that it is difficult to make money long term when trading currencies and indices - how do you manage? Most trend following systems have less than a 50% correct hit rate. This means that you get a series of losing trades from time-to-time - how good would you be with executing your system with precision when you get 5 losing trades in a row.

20 thoughts on “Why Trading Forex is so Difficult – Randomness in the Markets: Clusters of Bad and Good Luck

  1. tomkwi36

    Unbelievebly excellent stuff…That is in my opinion proof that you can find real pearls on the web.

  2. gonçalo

    My best trading week i was taking huge risks, around 10-20% per trade, i was very emotional too because of lot size.What made me tons of money was just adding to winners, cut losses when i realize i was wrong and sticking up with a strategy. Now a days im too scared to do it again, just thinking that 3 or 4 wrong trades could have destroyed me…but ended up very very good. Number 1 rule: go with trending markets, dont try to find the top or the bottom

  3. helena lessels

    What an excellent video, so absolutely true. Clusters of good and bad luck are to be expected, but my ability to navigate both needs a lot of work

  4. KpxUrz5745

    Agree with him that managing risk is essential for a trader, but I thoroughly disagree with his essentially dismal outlook that markets are SO random that every trade is a 50/50 proposition. By stepping up one's game in chart study, one can do far far better. And, there are clues to confidence level, so that the better setups can be traded more agressively. His approach seems so lackluster and sad. The learning curve can be quite lengthy, in becoming a consistenly profitable trader in non-upwardly biased markets, such as futures and currencies.

  5. Higgs000Boson

    His best trade was when he didn't touch his position for a few days. I always thought it's the best strategy 😉

  6. Kingdom Mann

    His math is wrong regarding "2 bad/good trades in a row." The correct answer is that there is a 1 in 4 (or 25% of the time this will occur over a 100 trades) chance of having 2 bad/good trades in a row.

  7. Jason Alerts

    This guy sound like a losing trader. People actually make money in the Forex market and have a high success rate. These old skool traders think 50% is good well its not. 50% Win rate in my eyes is crap.

  8. Jack G

    Looking to make profit in forex? Here is what I have learned from my own experience and mistakes. First of all make sure you have atleast £10000 in your trading account or more, otherwise with small capital you will lose all your money little by little to the point that you will ended up losing more than £10000 soon. Because trading with small capital is making small profit and that won't satisfy you and you ended up trading more and more in a day to reach that profit figure you want and due to that you ended up losing at the ended. With more capital you only take one trade that you are 100% confident, don't aim for too many pips because with good size capital account you can make a very decent profit even with 10 to 15pips. So after that you don't need trade for that day and next day do the same. Wait for the best signal, aim for 10 to 15 pips and you know pips size.

  9. Ray Miller

    In order to be profitable you have to know the 1D trend and than open 10 Lots position and you will get 10 000 dollars every 100 pips move in $USDCAD for example. This is real Forex business. Trend is moving for at list two week and some time for a few month with from 500 pips up to 2000 pips. You can make money just watching a few time per day your position 10 lots and in few month you will have 200 thousands dollars profit. That my advice for retail traders.

  10. Ray Miller

    Never use Fx with leverage less than 1:500 because there is no point to be on Fx with lot 0.01. You will just tired to work 24 in order to get 20 dollars and you will loose your small account by overtrading.

  11. Ray Miller

    In order to be profitable you have to have account no less than 10 000 dollars with leverage 1:500 and trade 1 Lot only which will take $200 margin. Never use Stop because Broker will close your position with sleapage from 5 to 10 pips and you will be loosing your money all the time. You have to know the Tend on 1D chart and trading with the Trend. If price is moving against you but she stays in the Trend you just use this as a Gift to add 1 lot to your position and you will have $400 margin now of your 10 000 dollars account. With leverage 1:500 you can trade 20 lots but you never do that. You can maximum load you account with 10 lots and if you are in 1D trend you will never loose any money. But, if trend is changed you have to close all your position. Never trade Forex as a Day Trader. Never try get 20 or 50 pips because you are overtrading and you will loose all you account on the end. Im Financial Engineer and this is just Tip for retailers.

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