Why Trading Forex is so Difficult - Randomness in the Markets: Clusters of Bad and Good Luck
Vložit
- čas přidán 24. 08. 2024
- ● We interview traders & educators regularly. 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 those brokers www.financial-s...
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.
👉 Trade with our Sponsor Broker: Trade Nation www.financial-spread-betting.com/ccount/click.php?id=95 Trade sensibly! 81.7% of retail investors lose money.
👉 We are seeking more contributors who can produce great video educational content about trading for our channel. If you think you have what it takes please get in touch by sending a message to traderATfinancial-spread-betting.com (remove the AT and substitute by @).
👉 It seems a lot of our viewers are non-subscribers. Make sure to subscribe to our youtube channel as we upload regular videos! If you hit the “Bell” icon (🔔) you will receive a notification on youtube every time that we upload a video on our channel. Bell icon hitters are super fans of our channel 🥰
He’s only 24; that’s what trading does to you
This master just summerized entire successful trading in just few sentences. Take a bow for your experience n wisdom sir.
Well said. The best trader are not the ones with high IQ, PhD in math, nor the technical or fundamental analyst expert, but the ones who arent mentally destroyed in bad times and still have his own alarm and rationality in good times.
Even if u win 50% of the time with Risk:Reward = 1:2, you are still profitable. If u win 30% of the time with Risk:Reward = 1:3, u r still profitable.
Trading is Mind Game.
It tests your Patience to wait for the perfect entry. Sniper Entries? They are done after a setup forms on Daily. Then wait for a setup of 4H, then 1H and then take the shot. This process requires PATIENCE. Trust the process and you will win.
I am quite profitable in Forex and been working very hard for the last 2 years. It was a great journey. It fucks with your mind, but you have got to be Patient. No greed.
dont listen to a forex trader who says its easy. he hasn't hit the wipe out yet. trading forex is a humbling experience. theres absolutely nothing 'easy' about trading currencies.
If it was easy then everyone would be doing it...
I have to agree with him, it gets hard to check myself when my trades are going right, there is a sense of invincibility that comes when you are getting it right and it can be also be devastating if you end up in the chop. Discipline is everything in trading!
i am just starting to learn trading at 62. My son said this is what teenagers do. I will show him wrong! FX is like Chinese to me now but i will become a successful institutional trader!
Legend has it, he’s still holding eye contact!
I've learned that blocking the emotions and sticking to the strategy even during a bad run is a good habit to have. I've managed to lose 5% over 5 trades and then made it back to break even in one trade. Patience and persistence. And never stop learning.
The psychology of trading is the hardest aspect to overcome!
Risk management is everything. Profits take care of themselves.
I loved this interview. That was liquid gold running from his mouth, shining diamonds of knowledge in every sentence. So good, so so good
Excellent interview. Key point for me is managing risk. Forget about how many losing trades you have just try to keep them small and let your good trades play out. In practice you can have more losing trades than winning trades and still turn a profit if you have the discipline to cut your loses and let the winners run.
That shit stressed me so bad that I started coming out of remission from my thyroid issues. I had to quit Trading Forex recently. My health and well being are my most important investments.
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
Listening to this confirmed a crucial mistake I used to make for years and now corrected. "YOU DON'T PICK THE TREND FROM THE DAILY!" The randomness from the daily to lower TFs increases as you go lower. The trend picking should always and only come from the Monthly/Weekly TFs. Know this and have peace!
Hey man, I feel you bro. Lost a lot of my money in the beginning, then really opened my eyes and listened to real investors. Now I just buy long term stocks, etfs, index’s and just focus on compounding. I don’t even check my account anymore, but every time I do, it goes up higher and higher. Slowly, but it really works. Day trade and swing trade really screwed me over.
I could listen to him talk about forex for hours - this is gold.
Good lesson, biggest trade he ever had was one he forgot about. I think we are our own worst enemy. Winning trade? Let that shit run. Easier said than done. :)
10million points for saying "muthi". this Zulu will now listen to you for ever
I believe the key is to know when to leave it alone. I'll wait weeks if necessary until I see a clean, clear trend. I've lost too much trying to trade anything else.
Two words Risk Management 👌
As a forex trader it's almost inevitable that you're going to experience some ups and downs along the way. Alertness and decisiveness are both fundamental in the recipe for a successful forex trader.
This guy is unbelievably honest. He sounds like success is all about understanding statistics and risk /Money mgmt, not about market knowledge!
This right here is one of the BEST video i've ever come across on CZcams
He said it all "Market makers & Algos". They control the market very carefully, markets are not random. What is "random" is your outcome or results in the SHORT TERM.
Everything this man has said is great content.
One of the best interviews!
Honestly he's 100% right. I've been on and off with forex but recently I came across some really good risk management advice and a simple strategy and honestly my mind is blown. I'm pretty busy rn so I haven't even got around to setting up a new demo account but I've been watching the charts when I get a break and just watching and there is money to be made if you can stick with it. The strategy doesn't necessarily get you out at the best time it's consistent in being right more often than not. Add risk management and you're good. At least it appears that way.....I'll know in a couple months.
Trading FX is the most difficult thing I have ever done.. but I wouldnt want to do anything else.
after this video i am considering selling my granny
For 50% win rate? Wack.
This guy give some of the best advice on the entire Internet in less than 10 minutes
Wow, this gentleman just described what have been my observations and conclusions after 6 years of trading. Unfortunately, as simple as it all sounds, it takes years of losing money to reach those conclusions. To be a profitable trader, you have to have very clear in your mind how probabilities work, which by the way, most of the time, are counter intuitive.
Forex is difficult not because of the randomness of the market (because it's not random as u may think) but the ability to control your emotions
Love how he just quitely slipped in how he trades at the start. Clearly no hidden agenda there.
It's all about RISK MANAGEMENT, assuming you do you technical (chart) analysis thoroughly, based on proven historical trends, and thus enter a viable trade, then put in place a trailing stop loss of 1 or 2% of your a/c, you can't go far wrong. You may have say 3 or 4 losses before you have a win, but if those losses are small and controlled, you should make steady gains over time.
wow. My inner divine voice just got replaced. Spot on. A week of wins and I got cocky at NFP day of all days. 😅 Wiser for it.
He's not lying here he's talking about the real reason why traders fail it all comes down to risk management.
This is a masterclass from the best.This guy has the best advice I have heard from anyone I've heard.11/10 sir.......110%.....
I've been day trading full time for 4 years now. About 50% of my trades are in the forex. Its a different beast for sure from stocks or futures but it isn't more difficult imo. You need different strategies. Its more similar to trading penny stocks. True that with every trading strategy or system even if you have a 80-90% strike rate you will hit draw-downs sometimes many in a row although that isnt typical. Any vetran trader will tell you they dealt with these things early in their careers but that goes away after a while. The psychology angle he's referring to is mostly for new traders. Those big bets hes referring to i went through as well. i cut that shit out long ago. Gotta manage your risk and position size constantly. There is some silly stop hunting going on in forex for sure
The more Timeframe you use to analyze..the more you will get confused..try to use 1 tf only..that how u can easily trade n make money in forex..use 4hour is the perfect tf
Now I understand how my Grandma feels When I Try to Explain social media to Her 😂 😂 😂
This video was one of the many keys that sparked my profitability in the markets, I come back to it often. Thank you ❤
feel like i've just been hit by a truck, He had me on every word. Exceptional.
He is somewhat correct, you will lose in the fx market if you are gambling but if you have set certain rules then you can execute every trade with accuracy ! 99.99 % of traders are speculators which is why so many traders lose. speculation is the form of all evil. if you don't have a winning system Don't trade !
You are correct. It is all about self-discipline when making & losing money. In forex, you must gauge risk every moment and regulate your position size and stop loss to weather the storms (clusters of luck). If you are disciplined enough on your risk, you won’t even need a stop loss, and can focus on your profit taking spots.
there is a simple solution to all this (Because of Market Manipulation.. I call it the Snail and the hare), Distant your stops and trade short ( meaning a psychological not to think big, because big is a gamble) trade with low constant profits, follow the trend and sell if you have to and stay ahead.
One of the most important things if you're going to be a trader is psychology. What he speaks of around 05:00 is squarely a psychology issue. Best material on this subject is Mark Douglas' books, The Disciplined Trader and Trading In The Zone, which audiobooks are in abundance on YT. Choose which one works best for you bc they are not all the same.
True, i lost everything by getting overconfident after a good run
I remember this video since 2018, and that was an " WOW ! Moment " for me. Thanks a lot for sharing a such inspiring interview.
Excellent interview.
Six years later and your information is still relevant 🙌
David should see how high my probability for 10 bad trades in a row is.
@Allan Mena
I agree with you those who know how to trade forex will never tell you......
There are a number of strategies out there. Risk management is the key, as the video suggested. If you want a strategy, go to babypips. Also, this channel has a number of good ones. Mark posts them all the time.
I'd walk through glass to be this man. He's on whole another level.
This guy is a great story teller , so entertaning !
Basically if you cut losses short and you keep a minimum 1:3+ Risk ratio you’re onto something decent.
He is using the 4-hr chart to enter a trade. His horizon must be in months and his stop loss is 150 pips.
His best trade was when he didn't touch his position for a few days. I always thought it's the best strategy ;)
i think i'm going to watch this chap everyday before i put any trades on
love this vid, great discussion...this is a must watch/listen for every trade.
Sir Forex may Be Deficult but India index option is 😢
My boy blinked only like 4 times in this whole video
Hommie didnt mention about the green space on roulette...
TRUST ME i have been able to help a lot of people make more profit and myself as well from the help of all your videos and sessions i have been listening to. you are such a great teacher and a friend...... i will continue saying a big thank you
It's a tradition to come here once a while
David was just on point. Hope he is ready to coach newbies on his avid risk management strategies
"And many trend following traders would sell their granny for a 50 percent system" classic
Had not thought about it being clusters before... very interesting... I like "The objective of doing business is doing business with the least risk"... Thanks for being a blessing and sharing...
Experience is the best teacher.
Sadly the average trader isn't aware of these odds and those who are don't really live by it. Trading is nothing but risk management and you cannot understand risk unless you understand probabilities
This is one of the best videos I have ever watched so far
Thanks
Keep more videos coming
This videos teaches me a lots how to go along way with my forex trader
In 2023, unfortunately, what this guy says don’t work anymore. It used to work maybe 15 years ago, but not now. What works now is only Algos.
Let's have a profitable week Traders!!! Bless up!
I would like to thank UKspreadbetting for running these videos, especially the man in this one. He recommended a book to read from Mr. Toppel. I just started reading this book and it started to make sense about trading the FOREX for me. I was basically "nuking" it from all the research I have been doing to try and build my trading skills. Sometimes you have to take a step back to take two steps forward. Its a true statement. Thank you UKspreadbetting!
How have I never come across this master before.
Study the markets, be in tune with the market, and you’ll get the market to become rich.
Hes right. Discipline is the hardest part of trading
you pick the trending instrument, decide when to be involved with the trend, and let a robot do the execution. Humans are far more emotional than a machine
I want to be this guy when I grow up. But with more hair.
Ayy did he just say "muthi" in zulu .. all the way from SA 🇿🇦🙌🔥
I got a sick winrate, way better than what he mentions, but I risk 1 to make 1 lol. I like winning, so I prefer it that way :)
Just wanted to say, there is not just 1 way to do things.
The reason you lose is because you cannot see one minute into the future.
Knowing that currency prices are almost normally distributed helps. Making money in forex is difficult analyzing a chart. Rather apply statistical analysis on currency prices over the very short term. 1 minute, 5 minutes and 15 minutes.
This guy is awesome. "All the ADX's of the world makes no darn difference"
It’s easy to pick apart a chart when everything is done but in a live market it’s not that easy especially with forex. You can look at the daily chart for trend and momentum can change in a heart beat. For those who think they will become millionaires by doing this be prepared to lose your capital before you start seeing any positive results. It’s a probability game simply put. Market is a cycle accumulation, manipulation and profit release. You do not know which cycle is present in front of your eyes till many bars later. Ranging markets are a true killer to your account it will wipe your whole account.
So basically it sums up to
1. Come up with a plan
2. Don't get cocky
Why do many successful traders get bankrupt many times before achieve the success ? I like the markets but I don't want to get bankrupt before achieve the success.
It has nothing to do with luck. Theres a particular method that outperforms the rest. Genius
i want to know when he will 3 times bigger when he think he is right,when is the timing?
Best interview I ever seen. Honest funny guy and confirmed most of my assumptions of the market.
14days of hardwork and focus can put you many years ahead i just got into forex and I made my first profit wish I knew about this earlier
When he said umuthi I thought it was a mistake 😂😂 as a South African Half Zulu half Mpondo man, I can confirm he is not lying 🙌🏻
David Paul is phenomenal. This video is like a trading Bible.
That lad has some right chat! Bald, skinny, past sixty and she was hanging off his every word. Super smooth! 👍🏻😂
Now this is the best video I have seen in a long time. Well explained with the mathematics of probability too.
Wow, so glad I stumbled upon this guy. His crocked tie exudes wisdom.
his first sentence , a gem already!
Best description I have heard in my 28 years of Forex Trading!!!
@Tommy Stark yes,very possible.Discipline,and psychology, then sticking to your trading plan will emply you forever
Im confused about the Stats : If you trade twice, your chance of getting 2 bad in a row is 1/2 x 1/2 or 1/4. I take this to mean that if you are going to trade / gamble 2 times, your chance of getting both bets wrong is 1/4 or 25% and if you are going to trade 3 times, your chance of getting 3 bets in a row bad are 1/2 x 1/2 x 1/2 or 1/8 so in 8 spins, you will get 3 wrong. I may be wrong
I will forever appreciate this channel, you've helped me and my family a lot, your videos, advice and lessons are inspirational helpful to us, we all love you
Wow, I needed this. I'm in a minor drawdown, didn't want to turn a pillow fight into a gun battle and so I took a break and searched for some wisdom.
This is (muthi) right here.