Okay, this post is verging on the unbelievable, but I'm putting it here for those who follow or already trade my system and know it's not BS.
So everyone traditionally says you should never trade on the holidays. Not enough volume to predict trends. Well, fortunately, my system doesn't "predict" anything. It works in real time with 100% true pieces of data right out of the MT4. So I decided to put my own system to the test and do it in style. I took an account, worked it over a couple months without making any withdrawals, and then traded very aggressively starting on December 15, 2010 (VERY aggressively to a point of margin risk that I wouldn't recommend...then again, I've been doing this for a while).
I didn't start out with any specific goal, and (frankly) I also didn't use the conventional FX Power Hedge System (still available for a short time at www.fxpowerhedge.com). I used an evolution of the system that I've put together and taught people who buy the traditional FX Power Hedge over the past year. This methodology is based on the data analysis methods used in FX Power Hedge, but takes it just one step further with a second real time variable in order to actually increase profit taking.
And, it's not technical analysis. And, it's not fundamental analysis. And, it's just not anything anyone has ever done before based on everything I've ever seen, read or heard going back to my start in forex back in 2006.
So, using this new evolution of the FX Power Hedge, what were my results? On the evening of December 30, 2010 after starting this sequence of trades on just December 15, I remarkably (although not so surprising to me since I've been getting great results all year) -- on December 30, 2010, my total profits exceeded $1 million. That's $1 million USD in 15 days.
Now, I seriously hesitated to post this, because everyone talks about how I must be promoting a scam and ya da ya. Cause my results are too good.
Hey, even Google refuses to allow me to buy AdWords cause they decided (without anyone at Google ever actually trying my system)...they decided the results I talk about on my FX Power Hedge website must be "fraudulent". Again, in my still ongoing war with Google for credibility, I sent these latest charts to them showing my daily profits from Dec. 15 - Dec. 30, 2010. Again, if anyone at Google reads this, you guys amaze me. You allow brokers to advertise and perpetuate the biggest scam in forex: technical analysis. But me...I must be the real scam cause I'm just one guy -- not a big broker paying megabucks for tons and tons of AdWords. Yeah, okay. Read my charts, guys.
This system is based on mathematics. It's based on the same principles used to chart the trajectory of other objects in space. We're simply applying these measures of trajectory calculation to a "virtual" object: price movement.
In concept, it's brutally simple. In execution, it's the beast in terms of profitable big and micro trend identification. I just wanted to pass along this example of the system actually working during the holidays last month. I have a book coming out soon that I will urge all of you to keep an eye out for: Trajectory Forex.
It will be available soon on Amazon and other outlets both as a paperback and e-book. This may be the last post I put up on this FX Power Hedge site. I'm going to take down the FX Power Hedge website soon and just move forward with the new system, simply called "Trajectory".
This has been a wonderful journey, and I've very much enjoyed sharing it with so many of you who check in here and there to report your progress. Honestly and sincerely, I have truly enjoyed working with you as much as you guys tell me stuff like "the support is great". I always chuckle when I get that one, cause it makes me sound like a call center. And hey, I'm just one guy answering e-mails and helping people learn how to trade forex for profit and hopefully for a living.
I wish you all well. Thank you very much for the journey. Together, I believe we have taken a big step toward eliminating a lot of the fraud in forex...especially the voodoo of Technical Analysis which is still wrongly promoted by almost every major broker, yet causes no less than 80% of all new traders to lose all their money.
Again, with my system, I achieved some disgusting results in a very short time even within the past month. Again, I tell you, forex is just not that difficult if you will only use the real time streaming data in your MT4, and NEVER try to "predict" the future. You can't predict the future anywhere else in the universe. Why in the world would anyone think some kind of chart pattern or candle formation can predict the future in forex? Yet, big brokers swear by this technical analysis BS and they suck in a ton of people every day convincing the novice trader they can learn it and make money. Bull.
Meanwhile, I used real time data to "trade in the now" and just pulled down a sweet $1 million in 15 days. AND...I did it during the bloody holidays. THAT is for the stinking brokers and Google who think my system is a scam. I look forward to the day (hopefully within the next few months) when my book hits the top 10 sellers. I'm excited. Again, watch for "Trajectory Forex" by Sparks coming out soon.
Peace and prosperity to all of you.
Sparks
Tuesday, January 11, 2011
Friday, October 22, 2010
Forex and the calculation of trajectory
When people first get into forex, they're typically fascinated and, at the same time, overwhelmed with the nearly endless complexities of technical analysis. Unfortunately, this is a methodology for trend identification that's based on historical chart patterns. Technical analysis is thus fundamentally flawed in that it attempts to do something impossible in our known universe: predict the future. It can't be done! What's more, history doesn't repeat itself. So past chart patterns have absolutely zero integrity relative to what's going to happen next in the forex market.
Yet, 80% of all new forex investors lose every penny they initially invest thanks to the flawed thinking behind technical analysis. People consistently make the mistake of believing that technical analysis will help them earn profits. Or they buy the latest trendy EA (Expert Advisor) and promptly throw away money on automation that does not work. There isn't a single EA that consistently earns profits. I buy them all. I try them all, cause I'd love to be surprised one day. But, the simple fact is that not ONE Expert Advisor consistently produces profits long term. Still, people love the idea of just magically pushing a button and making money. So, with eternal optimism, people buy these EA's and they lose money.
It's irritating and makes me angry.
I want to introduce you to another way to look at forex. In concept, this is going to sound profoundly simple. That's because it is!!!!!
What do we have in forex, if you strip away all the intricacies of technical and fundamental analysis? What is it that we see when we look at a chart in an MT4 platform? We see a moving piece of data: price. That's it. The price goes up (vertical) and it goes down (horizontal). And, you can observe these movements over periods of time (momentum/speed).
So, get simple. Stop thinking about global economies and who's rioting in the streets where, or what the economic conditions are in this nation and how it will impact some other nation...forget all that fundamental economic information. It's irrelevant to the mathematical problem of trajectory calculation.
Same is true for technical indicators. Forget channels and spinning tops and resistance levels. They mean nothing relative to the future.
Our objective is clear and really pretty simple. We're trying to calculate the trajectory of a currency moving through space at THIS PRESENT MOMENT, and we don't care about PAST patterns of movement. And we don't care about what causal effects may be prompting a currency to move up or down at one speed or another. We ONLY care about what's happening on that chart in this moment, cause THAT is where and how we make money.
Do you CARE "why" a currency goes up or down if you can simply identify the period of time where you can capture profits? I honestly contend that you will confuse yourself with the facts. You'll start introducing emotional and subjective thinking that screws up your trading decisions if you attempt to interpret world events or look at technical indicators.
You have to look at forex as a problem that's purely mathematical and there are empirical solutions because we actually have 100% true, streaming data. We actually get all we need to calculate the trajectory of a currency. It's simply the process of calculating the trajectory of price movement. Period.
When you look at your MT4 platform, what you should force yourself to see is just two fundamental things: price movement (which is vertical and horizontal), and the speed of price movement (which can be gauged in pips per X time frame). Forex provides us with two and only two variables which are 100% true at all times: price movement and time frame of X price movement. It streams into our MT4 platform in real time. This gives us the essential data to calculate momentum, which allows us to consistently identify trajectory.
Start thinking simple. Stop complicating your forex life with all the near infinite irrelevant things professional traders attempt to teach you. With effective money management, you can literally flip a coin and make a profit in forex. With even the most primitive trajectory calculation techniques, you should make big profits on a consistent basis. I teach this through my FX Power Hedge system, albeit an ongoing process of me trying to explain it better and better with every passing day. But hey, I try to teach it effectively and most traders who work with me "get it". My personal journey is told at www.fxpowerhedge.com. It may perhaps explain why I'm so hacked with the forex establishment and the ongoing rip off of every consumer trader, not to mention the seeming endless regulation they try to pile on top of us (but that we can get around if we know who to call when we open an account -- don't worry -- none of the latest regulations need affect you in any way).
You can profit on a consistent basis if you just focus on the data. Stick with facts. If you choose to learn through my system, I'll just ask that you work with me and let me try to explain it in my own way. I'm not a professional teacher, so I do what I can to explain this stuff. At the worst, I tell it like it is and I work very hard to liberate people from the constant BS of forex scammers. That's another reason why I only charge $29 bucks for my system, and I personally work with you as you learn the system in my own sometimes painfully slow way. But hey, as I said, I'm doing the best I can as a novice teacher, but successful trader.
The simple fact is that I got seriously hacked when I lost a lot of money because a major forex broker lied to me about technical analysis. I bought into it. I screwed up and I believed them. So I worked very hard to learn it. I paid them a disgusting amount of money to teach me.
Still, I lost every penny I put into no less than three different accounts that I traded with technical analysis. That's when I realized it was BS, and I got into the TRUE DATA behind forex. That's how I developed my system. I went on a pursuit of truth and I found it in the only 100% true data we get in forex. Mathematical calculations that are pretty simple related to trajectory of price movement. Because this is about reality. It's about what is happening now in terms of price movement.
It's not voodoo. Not guessing. Not predicting the future. Not hoping the past will repeat itself today in myriad complex chart patterns.
Just use your common sense. That's all I'm advising.
This is about data. 100% true variables that stream to you in your MT4 platform in real time.
This is not about guessing. Think trajectory. Trade smart. Win profits. You can do it.
Yet, 80% of all new forex investors lose every penny they initially invest thanks to the flawed thinking behind technical analysis. People consistently make the mistake of believing that technical analysis will help them earn profits. Or they buy the latest trendy EA (Expert Advisor) and promptly throw away money on automation that does not work. There isn't a single EA that consistently earns profits. I buy them all. I try them all, cause I'd love to be surprised one day. But, the simple fact is that not ONE Expert Advisor consistently produces profits long term. Still, people love the idea of just magically pushing a button and making money. So, with eternal optimism, people buy these EA's and they lose money.
It's irritating and makes me angry.
I want to introduce you to another way to look at forex. In concept, this is going to sound profoundly simple. That's because it is!!!!!
What do we have in forex, if you strip away all the intricacies of technical and fundamental analysis? What is it that we see when we look at a chart in an MT4 platform? We see a moving piece of data: price. That's it. The price goes up (vertical) and it goes down (horizontal). And, you can observe these movements over periods of time (momentum/speed).
So, get simple. Stop thinking about global economies and who's rioting in the streets where, or what the economic conditions are in this nation and how it will impact some other nation...forget all that fundamental economic information. It's irrelevant to the mathematical problem of trajectory calculation.
Same is true for technical indicators. Forget channels and spinning tops and resistance levels. They mean nothing relative to the future.
Our objective is clear and really pretty simple. We're trying to calculate the trajectory of a currency moving through space at THIS PRESENT MOMENT, and we don't care about PAST patterns of movement. And we don't care about what causal effects may be prompting a currency to move up or down at one speed or another. We ONLY care about what's happening on that chart in this moment, cause THAT is where and how we make money.
Do you CARE "why" a currency goes up or down if you can simply identify the period of time where you can capture profits? I honestly contend that you will confuse yourself with the facts. You'll start introducing emotional and subjective thinking that screws up your trading decisions if you attempt to interpret world events or look at technical indicators.
You have to look at forex as a problem that's purely mathematical and there are empirical solutions because we actually have 100% true, streaming data. We actually get all we need to calculate the trajectory of a currency. It's simply the process of calculating the trajectory of price movement. Period.
When you look at your MT4 platform, what you should force yourself to see is just two fundamental things: price movement (which is vertical and horizontal), and the speed of price movement (which can be gauged in pips per X time frame). Forex provides us with two and only two variables which are 100% true at all times: price movement and time frame of X price movement. It streams into our MT4 platform in real time. This gives us the essential data to calculate momentum, which allows us to consistently identify trajectory.
Start thinking simple. Stop complicating your forex life with all the near infinite irrelevant things professional traders attempt to teach you. With effective money management, you can literally flip a coin and make a profit in forex. With even the most primitive trajectory calculation techniques, you should make big profits on a consistent basis. I teach this through my FX Power Hedge system, albeit an ongoing process of me trying to explain it better and better with every passing day. But hey, I try to teach it effectively and most traders who work with me "get it". My personal journey is told at www.fxpowerhedge.com. It may perhaps explain why I'm so hacked with the forex establishment and the ongoing rip off of every consumer trader, not to mention the seeming endless regulation they try to pile on top of us (but that we can get around if we know who to call when we open an account -- don't worry -- none of the latest regulations need affect you in any way).
You can profit on a consistent basis if you just focus on the data. Stick with facts. If you choose to learn through my system, I'll just ask that you work with me and let me try to explain it in my own way. I'm not a professional teacher, so I do what I can to explain this stuff. At the worst, I tell it like it is and I work very hard to liberate people from the constant BS of forex scammers. That's another reason why I only charge $29 bucks for my system, and I personally work with you as you learn the system in my own sometimes painfully slow way. But hey, as I said, I'm doing the best I can as a novice teacher, but successful trader.
The simple fact is that I got seriously hacked when I lost a lot of money because a major forex broker lied to me about technical analysis. I bought into it. I screwed up and I believed them. So I worked very hard to learn it. I paid them a disgusting amount of money to teach me.
Still, I lost every penny I put into no less than three different accounts that I traded with technical analysis. That's when I realized it was BS, and I got into the TRUE DATA behind forex. That's how I developed my system. I went on a pursuit of truth and I found it in the only 100% true data we get in forex. Mathematical calculations that are pretty simple related to trajectory of price movement. Because this is about reality. It's about what is happening now in terms of price movement.
It's not voodoo. Not guessing. Not predicting the future. Not hoping the past will repeat itself today in myriad complex chart patterns.
Just use your common sense. That's all I'm advising.
This is about data. 100% true variables that stream to you in your MT4 platform in real time.
This is not about guessing. Think trajectory. Trade smart. Win profits. You can do it.
Saturday, October 16, 2010
Forex: Free Margin Is Everything
I recently had a young lady purchase my system (www.fxpowerhedge.com), and she blew up a whole $50,000 demo account in two days. When she contacted me for support, it took me about half a second to ask her how many trades she made at the start and how much free margin she had allowed herself.
Her response? I quote, "What's free margin?" It was okay. I explained. It's not unusual for novice traders to buy my system and start out with actually zero knowledge about trading forex. So I explained to her the importance of free margin. Somewhere along the way in that series of e-mail exchanges, I realized that I probably haven't emphasized free margin requirements enough in my blog and in other communications.
Then, if you really stop to think about it, you realize that free margin is EVERYTHING in forex. It "can" be the sole determining factor between profits and losses (unless you happen to pick ONLY winning trades, which is tough since even my system has a 3% losing statistic). And while my system has been documented to be the most statistically successful in forex (no surprise since it is based purely on mathematics and the only 100% true real time data you get in forex), you can STILL face the need to ride out retraces.
If you don't leave yourself adequate free margin, boom -- you're out. You get a margin call and you lose your trade -- typically losing money that seriously hurts your account.
So before you get trade happy after purchasing my system or getting into forex with ANY approach (including flipping a coin, which I've discussed in other posts as being equally viable to technical analysis at its best), you MUST adhere to basic rules of free margin.
Step one here is to talk with your broker and find out their requirements. As the global economy has gotten more and more unstable, brokers have changed their free margin requirements. This simply means they require you to have MORE money available in your account and NOT tied up in trades than previously when we had a stable global economy. So get the exact information you need from your broker.
As a general rule, however, I always recommend at least 50% of your total account equity should be kept available as free margin. With smaller account, you may need to keep MORE equity available as free margin. Let's face it. If you have just a $300 account, then $150 in free margin may not protect you from much in the way of a small retrace.
This brings up the second issue: starting accounts with very small amounts of money. Not everyone has $5000 - $15,000 to open their initial account. I understand. That's real world. Not a problem, and I was there myself in 2006. I lost several $300 accounts in rapid fashion before I started figuring out the mathematics of my system and quickly tossing technical analysis out the window. It didn't take me long to realize you can't predict the future based on past data, and that's EXACTLY what technical analysis attempts to do. So trying to make money with technical analysis when I started out with my own $300 accounts was a total failure (for me).
It's impossible to predict the future in our known universe, and you surely can't expect PAST chart patterns to consistently repeat themselves. So I strongly urge you to forget technical analysis. But you CAN make big profits starting with just a $300 account. It simply requires some patience and intelligent execution of the FX Power Hedge in the early days. As I've discussed before as well, profit in forex grow exponentially, not incrementally. So it doesn't take long to build a small account into a much more safe large account. You simply have to avoid unwise mistakes.
I routinely share charts with my new traders where I demonstrate that it takes (on average) 10 to 14 days to double a $300 - $500 account. However, once you reach the $1000 account size (which yes, can take two weeks or so in today's market), you can then pretty routinely double that account in about 3 days. That's the best example of how growth is exponential in forex versus incremental. And that's the reason we have so many people who have gone from $300 to $500 as their opening account up to $15,000 in only 45 days on average. After that point, you "should" be clearing $1600 - $4000 per 24 hour cycle with my system.
THE WHOLE TIME: FREE MARGIN IS AN ESSENTIAL VARIABLE! You MUST keep at least half your account available as free margin right up through the $15,000 equity level. Only at that point can you start thinking about reducing the amount you keep as free margin to $5000 or so, and even then I err on the side of caution versus pushing the limit. Personally, I ALWAYS keep a minimum of 50% of my account available as free margin even on accounts bigger than $15,000! Believe it.
There's simply too much money on the line to take any risk of suffering a margin call. So it's one thing to get into forex with a system that pretty consistently identifies trends for small and big profits (yes, the profits vary one trade to another). It's something else to identify the trend, but then SCREW IT UP because you made too many trades and left yourself vulnerable to a margin call with even just a small retrace!
Whether you're using my system or technical analysis or whatever approach in forex, WATCH THE FREE MARGIN!!!! It's critical to your success. If you're greedy and you try to make every possible trade to build up profits fast, fast, fast, you can expect problems, problems, problems.
Forex requires patience and good judgment. Forex requires diligence and practice. Forex requires you to take intelligent risks -- not just guess and hope to get lucky. I know it's tempting to look at the declining value of the USD (for example) and just go all-in against the dollar, but that's simply not always going to work. Even the strongest of trends suffers from retraces. But okay, if you had $100,000 in free margin, and you were only trading one lot (which would be pretty ridiculous, but just as an example). That's a trade you could just leave in place and work off the Daily, Weekly and Monthly charts. Retraces, even reverses, aren't going to hurt THAT trade. I know that's an extreme example, but I want to stress that FREE MARGIN allows you to ride out all kinds of mistakes and market fluctuations. So it's a HUGE factor that doesn't get enough attention -- from me and everyone else teaching forex.
So protect your account with enough free margin to safely survive retraces. With a $300 account, I recommend at least $150 as free margin. That's the minimum.
Be smart in your trend identification methodology, and I obviously recommend my own FX Power Hedge system (www.fxpowerhedge.com). I'm going write another post soon about the core concepts of my system relative to the Six Degrees of Freedom in navigation as used by NASA. It's fascinating, and I'm working on what is, in essence, a white paper on charting the course of a currency in terms of price movement to explain why my system works from yet another point of view. So that's coming soon. Meanwhile, be safe. Make every trade count. Win big. Lose small. And NEVER have a margin call! Watch your FREE MARGIN!!!
Her response? I quote, "What's free margin?" It was okay. I explained. It's not unusual for novice traders to buy my system and start out with actually zero knowledge about trading forex. So I explained to her the importance of free margin. Somewhere along the way in that series of e-mail exchanges, I realized that I probably haven't emphasized free margin requirements enough in my blog and in other communications.
Then, if you really stop to think about it, you realize that free margin is EVERYTHING in forex. It "can" be the sole determining factor between profits and losses (unless you happen to pick ONLY winning trades, which is tough since even my system has a 3% losing statistic). And while my system has been documented to be the most statistically successful in forex (no surprise since it is based purely on mathematics and the only 100% true real time data you get in forex), you can STILL face the need to ride out retraces.
If you don't leave yourself adequate free margin, boom -- you're out. You get a margin call and you lose your trade -- typically losing money that seriously hurts your account.
So before you get trade happy after purchasing my system or getting into forex with ANY approach (including flipping a coin, which I've discussed in other posts as being equally viable to technical analysis at its best), you MUST adhere to basic rules of free margin.
Step one here is to talk with your broker and find out their requirements. As the global economy has gotten more and more unstable, brokers have changed their free margin requirements. This simply means they require you to have MORE money available in your account and NOT tied up in trades than previously when we had a stable global economy. So get the exact information you need from your broker.
As a general rule, however, I always recommend at least 50% of your total account equity should be kept available as free margin. With smaller account, you may need to keep MORE equity available as free margin. Let's face it. If you have just a $300 account, then $150 in free margin may not protect you from much in the way of a small retrace.
This brings up the second issue: starting accounts with very small amounts of money. Not everyone has $5000 - $15,000 to open their initial account. I understand. That's real world. Not a problem, and I was there myself in 2006. I lost several $300 accounts in rapid fashion before I started figuring out the mathematics of my system and quickly tossing technical analysis out the window. It didn't take me long to realize you can't predict the future based on past data, and that's EXACTLY what technical analysis attempts to do. So trying to make money with technical analysis when I started out with my own $300 accounts was a total failure (for me).
It's impossible to predict the future in our known universe, and you surely can't expect PAST chart patterns to consistently repeat themselves. So I strongly urge you to forget technical analysis. But you CAN make big profits starting with just a $300 account. It simply requires some patience and intelligent execution of the FX Power Hedge in the early days. As I've discussed before as well, profit in forex grow exponentially, not incrementally. So it doesn't take long to build a small account into a much more safe large account. You simply have to avoid unwise mistakes.
I routinely share charts with my new traders where I demonstrate that it takes (on average) 10 to 14 days to double a $300 - $500 account. However, once you reach the $1000 account size (which yes, can take two weeks or so in today's market), you can then pretty routinely double that account in about 3 days. That's the best example of how growth is exponential in forex versus incremental. And that's the reason we have so many people who have gone from $300 to $500 as their opening account up to $15,000 in only 45 days on average. After that point, you "should" be clearing $1600 - $4000 per 24 hour cycle with my system.
THE WHOLE TIME: FREE MARGIN IS AN ESSENTIAL VARIABLE! You MUST keep at least half your account available as free margin right up through the $15,000 equity level. Only at that point can you start thinking about reducing the amount you keep as free margin to $5000 or so, and even then I err on the side of caution versus pushing the limit. Personally, I ALWAYS keep a minimum of 50% of my account available as free margin even on accounts bigger than $15,000! Believe it.
There's simply too much money on the line to take any risk of suffering a margin call. So it's one thing to get into forex with a system that pretty consistently identifies trends for small and big profits (yes, the profits vary one trade to another). It's something else to identify the trend, but then SCREW IT UP because you made too many trades and left yourself vulnerable to a margin call with even just a small retrace!
Whether you're using my system or technical analysis or whatever approach in forex, WATCH THE FREE MARGIN!!!! It's critical to your success. If you're greedy and you try to make every possible trade to build up profits fast, fast, fast, you can expect problems, problems, problems.
Forex requires patience and good judgment. Forex requires diligence and practice. Forex requires you to take intelligent risks -- not just guess and hope to get lucky. I know it's tempting to look at the declining value of the USD (for example) and just go all-in against the dollar, but that's simply not always going to work. Even the strongest of trends suffers from retraces. But okay, if you had $100,000 in free margin, and you were only trading one lot (which would be pretty ridiculous, but just as an example). That's a trade you could just leave in place and work off the Daily, Weekly and Monthly charts. Retraces, even reverses, aren't going to hurt THAT trade. I know that's an extreme example, but I want to stress that FREE MARGIN allows you to ride out all kinds of mistakes and market fluctuations. So it's a HUGE factor that doesn't get enough attention -- from me and everyone else teaching forex.
So protect your account with enough free margin to safely survive retraces. With a $300 account, I recommend at least $150 as free margin. That's the minimum.
Be smart in your trend identification methodology, and I obviously recommend my own FX Power Hedge system (www.fxpowerhedge.com). I'm going write another post soon about the core concepts of my system relative to the Six Degrees of Freedom in navigation as used by NASA. It's fascinating, and I'm working on what is, in essence, a white paper on charting the course of a currency in terms of price movement to explain why my system works from yet another point of view. So that's coming soon. Meanwhile, be safe. Make every trade count. Win big. Lose small. And NEVER have a margin call! Watch your FREE MARGIN!!!
Thursday, September 23, 2010
Leverage In The United States
Okay, maybe I'm a weenie. But I went back today and deleted kind of a harsh post regarding the CFTC ruling that would attempt to restrict leverage for retail forex traders (that's me and you).
Here's the deal. Not all brokers will be affected by this ruling, so you will be able to access direct to market brokers who not only allow you to hedge (which has made that NFA ruling against hedging meaningless), but also brokers right here in the United States (and around the world, of course) who will continue to legally let you use leverage from 100 to 1 up to 400 to 1. That is a direct quote from my own direct to market broker. I trade with them legally and ethically, and I currently use 100 to 1 leverage as well as hedging right here in the U.S. I will continue to be able to use my standard and preferred 100 to 1 leverage as well as hedging capabilities with this same direct to market broker based right here in the United States.
Capitalists always find a way.
As I said in a somewhat more lengthy and politically editorial post yesterday, capitalism and free trade are alive still today in the United States. Responsible traders who actually know how to use leverage to their advantage (as well as hedging as a strategy to protect equity) continue to not only use but NEED these trading fundamentals. It's wrong for the current administration to attempt to over regulate our ability to trade.
Regardless, and I'll stop with the editorializing here cause most of you already know how I feel about the current administration, we capitalists will always find a way to make a profit. It's what we do. We will continue to do it, despite every attempt to regulate limits on free enterprise by the current Obama administration.
So don't worry about that CFTC ruling. It's not going to affect you if you simply look around at all your options. We only have a couple more years to endure, and then we'll likely return to a more capitalist friendly Washington, D.C. At least that's my opinion. Peace and prosperity to all. Well, actually the "prosperity" part is mostly directed at those willing to take a risk of actually making profits in America today by actively investing. What a concept.
Here's the deal. Not all brokers will be affected by this ruling, so you will be able to access direct to market brokers who not only allow you to hedge (which has made that NFA ruling against hedging meaningless), but also brokers right here in the United States (and around the world, of course) who will continue to legally let you use leverage from 100 to 1 up to 400 to 1. That is a direct quote from my own direct to market broker. I trade with them legally and ethically, and I currently use 100 to 1 leverage as well as hedging right here in the U.S. I will continue to be able to use my standard and preferred 100 to 1 leverage as well as hedging capabilities with this same direct to market broker based right here in the United States.
Capitalists always find a way.
As I said in a somewhat more lengthy and politically editorial post yesterday, capitalism and free trade are alive still today in the United States. Responsible traders who actually know how to use leverage to their advantage (as well as hedging as a strategy to protect equity) continue to not only use but NEED these trading fundamentals. It's wrong for the current administration to attempt to over regulate our ability to trade.
Regardless, and I'll stop with the editorializing here cause most of you already know how I feel about the current administration, we capitalists will always find a way to make a profit. It's what we do. We will continue to do it, despite every attempt to regulate limits on free enterprise by the current Obama administration.
So don't worry about that CFTC ruling. It's not going to affect you if you simply look around at all your options. We only have a couple more years to endure, and then we'll likely return to a more capitalist friendly Washington, D.C. At least that's my opinion. Peace and prosperity to all. Well, actually the "prosperity" part is mostly directed at those willing to take a risk of actually making profits in America today by actively investing. What a concept.
Wednesday, September 1, 2010
My war with Google
Well, you should look for a revised version of my website at some point soon. I have had Google shut down my Adwords account cause they claim my website is a "get rich quick scheme". So I wrote back to them and asked, "What if people actually get rich with my system, AND they earn the wealth in a very short period of time? In other words, what if this actually is a legitimate way to get rich quick?" They still didn't believe me.
So, I sent a free copy of my system and offered full support for anyone there who would try it. I promised if I can't help you make $500,000 in less than six weeks at a minimum, then fine -- call me a liar. No one responded. No one tried my system. No one at Google offered to even check out my trading system.
So this creates quite the hassle. I'm kind of writing this post now cause I'm frustrated trying to write new copy for a new website. First, I was insulted that Google challenged the integrity of my mathematics based system. I suggested that they should actually challenge the integrity of every claim made by forex brokers (who advertise with Google Adwords non-stop), but they promote technical analysis which causes 80% of all new traders to lose all their money and is fatally flawed because it seeks to predict price movement trends based on HISTORICAL chart patterns. Well, sad to break the news to Google and all fans of technical analysis, but history does NOT repeat itself consistently. More importantly, it is somewhat generally accepted in the world of science and technology that it is impossible to "predict" the future.
This is what technical analysis tries to do. Technical analysis is the scam out there. Yet, Google says I'm promoting the "get rich quick" scheme. Well, people DO get rich quick. I get e-mails daily from people who succeed with my system. I enjoy working with people on the system, cause your day trading forex is otherwise filled with boredom waiting for trends to identify themselves or price movement to hit some important mathematical trend indicators. With a lot fewer people buying my system, I actually find myself playing a lot of online Texas Hold Em. It's fun. I enjoy it, because it's a game of statistical probability (which is the same kind of calculation we do in my system in forex).
But it's not nearly as exciting as working with someone. Explaining how to use two 100% true variables in forex (price movement and time), put the data into synergy, and then make real time trading decisions to earn big profits. That's how my system works. I love it when the light bulb goes off over a person's head and they "get it".
And I even enjoy the skeptics who buy my system and say, "No way. It can't be this simple." Actually, it is pretty simple once you get into it. The voodoo preached by conventional brokers is the scam.
But, hey, I'm the guy now banned from Google adwords. I have a lot less people buying my system, which doesn't bug me financially so much cause I only charge a humble $29.95 for the whole deal including my special, personal support. :-)
The frustration is that I am losing my contact with people learning, and that creates kind of a stale and boring existence for me. So let me use this blog to just whine a bit.
I'd like some whine with my forex profits. But okay. Google, you guys get ready. I'm rewriting my website. I wrote one new version which just had a disclaimer at the top, but that's not a "new" website. I am having a hard time taking stuff out, cause everything in there is from my life. It's my actual story. What a pain.
But okay. I am writing something new, and then I am raising the stinking price cause this has hacked me off. What a world we live in. Google is like the monopoly on reaching people on the web.
Can't someone invent a legitimate system that competes with these guys? I signed up for Yahoo adwords, or their version, and no one visits my sites. Hits are way down, and no one is even asking me questions through the support e-mail address. I feel like I'm all alone in front of a PC, and that is boring as hell.
A new website. How about, "You MIGHT make big money." "It's theoretically possible that mathematics work in our universe, so it's 'possible' you 'may' in some instances earn a million bucks with my system...but that's not a get rich quick 'promise' -- it's just what other people have done." How about 3000+ people who have bought the system in the past four years?????
I am very angry with the jerks at Google. Cause you don't matter to them. And whatever they determine is just the way it is. They don't talk to you and they don't listen. They TELL you the way it is, and that's the deal. How in the world did these guys get so big? Or, perhaps the better question is how do they STAY so big when they disregard people with such absolute confidence that THEY know the facts despite zero investigation of the subject at hand.
Anyway.
So, I sent a free copy of my system and offered full support for anyone there who would try it. I promised if I can't help you make $500,000 in less than six weeks at a minimum, then fine -- call me a liar. No one responded. No one tried my system. No one at Google offered to even check out my trading system.
So this creates quite the hassle. I'm kind of writing this post now cause I'm frustrated trying to write new copy for a new website. First, I was insulted that Google challenged the integrity of my mathematics based system. I suggested that they should actually challenge the integrity of every claim made by forex brokers (who advertise with Google Adwords non-stop), but they promote technical analysis which causes 80% of all new traders to lose all their money and is fatally flawed because it seeks to predict price movement trends based on HISTORICAL chart patterns. Well, sad to break the news to Google and all fans of technical analysis, but history does NOT repeat itself consistently. More importantly, it is somewhat generally accepted in the world of science and technology that it is impossible to "predict" the future.
This is what technical analysis tries to do. Technical analysis is the scam out there. Yet, Google says I'm promoting the "get rich quick" scheme. Well, people DO get rich quick. I get e-mails daily from people who succeed with my system. I enjoy working with people on the system, cause your day trading forex is otherwise filled with boredom waiting for trends to identify themselves or price movement to hit some important mathematical trend indicators. With a lot fewer people buying my system, I actually find myself playing a lot of online Texas Hold Em. It's fun. I enjoy it, because it's a game of statistical probability (which is the same kind of calculation we do in my system in forex).
But it's not nearly as exciting as working with someone. Explaining how to use two 100% true variables in forex (price movement and time), put the data into synergy, and then make real time trading decisions to earn big profits. That's how my system works. I love it when the light bulb goes off over a person's head and they "get it".
And I even enjoy the skeptics who buy my system and say, "No way. It can't be this simple." Actually, it is pretty simple once you get into it. The voodoo preached by conventional brokers is the scam.
But, hey, I'm the guy now banned from Google adwords. I have a lot less people buying my system, which doesn't bug me financially so much cause I only charge a humble $29.95 for the whole deal including my special, personal support. :-)
The frustration is that I am losing my contact with people learning, and that creates kind of a stale and boring existence for me. So let me use this blog to just whine a bit.
I'd like some whine with my forex profits. But okay. Google, you guys get ready. I'm rewriting my website. I wrote one new version which just had a disclaimer at the top, but that's not a "new" website. I am having a hard time taking stuff out, cause everything in there is from my life. It's my actual story. What a pain.
But okay. I am writing something new, and then I am raising the stinking price cause this has hacked me off. What a world we live in. Google is like the monopoly on reaching people on the web.
Can't someone invent a legitimate system that competes with these guys? I signed up for Yahoo adwords, or their version, and no one visits my sites. Hits are way down, and no one is even asking me questions through the support e-mail address. I feel like I'm all alone in front of a PC, and that is boring as hell.
A new website. How about, "You MIGHT make big money." "It's theoretically possible that mathematics work in our universe, so it's 'possible' you 'may' in some instances earn a million bucks with my system...but that's not a get rich quick 'promise' -- it's just what other people have done." How about 3000+ people who have bought the system in the past four years?????
I am very angry with the jerks at Google. Cause you don't matter to them. And whatever they determine is just the way it is. They don't talk to you and they don't listen. They TELL you the way it is, and that's the deal. How in the world did these guys get so big? Or, perhaps the better question is how do they STAY so big when they disregard people with such absolute confidence that THEY know the facts despite zero investigation of the subject at hand.
Anyway.
Wednesday, July 7, 2010
How Time Frames Identify Forex Profits
This post is for a large number of people now trading a second evolution of my system that I call "Two Variable Trading" -- or no stop/no limit trading. (www.FXPowerHedge.com).
This is about opening a hedge (although the hedge is not essential), and using the combination of price movement and time frames to make decisions as to when you capture profits.
What's important to remember is that long term time frames from H1 and up through daily, weekly and monthly -- these are very important time frames. Far too many traders focus only on the short term time frames. They overlook the most painfully obvious fact of time frame analysis.
The short term time frames from M1 - M30 CREATE the long term time frames. It's kind of a major "duh", but I keep hearing from so many traders "Why bother looking at the long term beyond H1?" The reason is that daily, weekly and monthly trends tend to have a gravity that pulls the short term time frame movement back to their direction. So when you see a consistent and strong move up or down in day, week and month time frames, you can usually trust that the short term time frames will (sooner or later) come back to that movement -- assuming it's strong over many months.
By the same logic, if you see day, week and month trends that are up and down, like a trend on the monthly chart that shows strong downward movement, BUT it was going upward two months ago, and downward two months before that -- well, then you have long term sideways movement.
THIS is a powerful indicator that EVERY time frame shorter range than monthly is vulnerable in terms of indicating a strong trend. Or, if you are shooting for profits on both sides of a sideways movement, then you can close only profitable trades in your power hedge, open new power hedges at mid-points in the sideways sequence of moves, and rack up profit after profit.
But, with trends, you need to scan ALL time frames and watch for inconsistencies. This is trouble. You will first see a trend coming to an end in tick chart and M1 time frame. Then, M5, M15 and M30 will start to show you a retrace "could" be more and become a reverse if it continues. Finally, if the move against a long term trend shows up strong on H1, then you are looking at what might be a trustworthy trend for profit making over a reasonable period of a day or two.
This is all part of training I provide in more depth with my system, but I want to make the point for all my traders who read this blog as part of the program I sell. Please remember to look at ALL time frames. Please remember to give very much attention to the longer time frames. They are very important.
NEVER trade only on the short term time frames. Far too many people try to scalp profits by looking only at M30, M15, M5 and M1 time frames. It seems appealing. It seems like a good way to make many small profits on a daily basis. But it is VERY risky if you are not ALWAYS looking at longer term time frames.
As well, you must take into account the SPEED of price movement. This is indicated in the shorter term time frames also. The faster a move, then the more momentum the move has and will likely continue. So when people ask me if a 30 pip move indicates a trend, even a short term trend, I must again refer them to the TIME FRAMES.
A 30 pip move that happens over a period of six hours is not nearly as strong as a 30 pip move that happens in one hour. That is an extreme example, and you must watch for something like a 30 pip quick retrace. But, again, this is all about looking at all the time frames and making sure you are seeing movement that is more a trend and not a momentary blip.
I believe technical analysis causes people to disregard time frame, momentum and true trajectory of price movement. These variables can all be clearly identified when you incorporate true and comprehensive time frame analysis. So never base trading decisions only on short term time frames. Take into account all time frames, and learn the full scope of what I call "Two Variable Trading". It's part of the FX Power Hedge System (www.FXPowerHedge.com), and essential to transcending the voodoo analysis taught by technical traders. Never try to predict the future. Trust only real time data, because your trades are surely going to produce either real time profits or real time losses. The one thing we know about forex is that you can make money very, very fast...or lose money just as fast. Real time data is the ONLY way to trade. That's how my system works. It's all in the numbers. No speculation is allowed.
This is about opening a hedge (although the hedge is not essential), and using the combination of price movement and time frames to make decisions as to when you capture profits.
What's important to remember is that long term time frames from H1 and up through daily, weekly and monthly -- these are very important time frames. Far too many traders focus only on the short term time frames. They overlook the most painfully obvious fact of time frame analysis.
The short term time frames from M1 - M30 CREATE the long term time frames. It's kind of a major "duh", but I keep hearing from so many traders "Why bother looking at the long term beyond H1?" The reason is that daily, weekly and monthly trends tend to have a gravity that pulls the short term time frame movement back to their direction. So when you see a consistent and strong move up or down in day, week and month time frames, you can usually trust that the short term time frames will (sooner or later) come back to that movement -- assuming it's strong over many months.
By the same logic, if you see day, week and month trends that are up and down, like a trend on the monthly chart that shows strong downward movement, BUT it was going upward two months ago, and downward two months before that -- well, then you have long term sideways movement.
THIS is a powerful indicator that EVERY time frame shorter range than monthly is vulnerable in terms of indicating a strong trend. Or, if you are shooting for profits on both sides of a sideways movement, then you can close only profitable trades in your power hedge, open new power hedges at mid-points in the sideways sequence of moves, and rack up profit after profit.
But, with trends, you need to scan ALL time frames and watch for inconsistencies. This is trouble. You will first see a trend coming to an end in tick chart and M1 time frame. Then, M5, M15 and M30 will start to show you a retrace "could" be more and become a reverse if it continues. Finally, if the move against a long term trend shows up strong on H1, then you are looking at what might be a trustworthy trend for profit making over a reasonable period of a day or two.
This is all part of training I provide in more depth with my system, but I want to make the point for all my traders who read this blog as part of the program I sell. Please remember to look at ALL time frames. Please remember to give very much attention to the longer time frames. They are very important.
NEVER trade only on the short term time frames. Far too many people try to scalp profits by looking only at M30, M15, M5 and M1 time frames. It seems appealing. It seems like a good way to make many small profits on a daily basis. But it is VERY risky if you are not ALWAYS looking at longer term time frames.
As well, you must take into account the SPEED of price movement. This is indicated in the shorter term time frames also. The faster a move, then the more momentum the move has and will likely continue. So when people ask me if a 30 pip move indicates a trend, even a short term trend, I must again refer them to the TIME FRAMES.
A 30 pip move that happens over a period of six hours is not nearly as strong as a 30 pip move that happens in one hour. That is an extreme example, and you must watch for something like a 30 pip quick retrace. But, again, this is all about looking at all the time frames and making sure you are seeing movement that is more a trend and not a momentary blip.
I believe technical analysis causes people to disregard time frame, momentum and true trajectory of price movement. These variables can all be clearly identified when you incorporate true and comprehensive time frame analysis. So never base trading decisions only on short term time frames. Take into account all time frames, and learn the full scope of what I call "Two Variable Trading". It's part of the FX Power Hedge System (www.FXPowerHedge.com), and essential to transcending the voodoo analysis taught by technical traders. Never try to predict the future. Trust only real time data, because your trades are surely going to produce either real time profits or real time losses. The one thing we know about forex is that you can make money very, very fast...or lose money just as fast. Real time data is the ONLY way to trade. That's how my system works. It's all in the numbers. No speculation is allowed.
Sunday, June 6, 2010
Win At Forex By Flipping A Coin
I was talking recently with a fellow who just started trading my system (www.FXPowerHedge.com), which is fundamentally based on identifying trends with high statistical probability via mathematical calculations. I was teaching him an advanced method of trend identification that's part of my system, and he finally "got it" when I reduced my explanation to the simplest of examples relative to odds.
First, the simple reality is that no one can predict the future. This is the fatal flaw of technical analysis. It seeks to use historical chart patterns to predict future price behavior. The problem is that history does not repeat itself with such precision, especially in such unstable economic times as we see worldwide today. So, 80% or more of all the people who get into forex lose all their money thanks to the flawed nature of technical analysis. (Sadly, this is the technique taught to just about everyone who gets into forex.)
Instead, I teach a system that does not attempt to predict the future. Instead, it uses real time data to make real time trading decisions. In the simplest of terms, the FX Power Hedge (my system) identifies trends through the combination of price movement and time frames. By synthesizing these two real time variables, as they transpire, calculations of statistical probability can be made and trends can be identified with consistent success.
So I was explaining this to a new trader and he was having a hard time UN-learning technical analysis, so I reduced it to statistics at the most basic level. I explained that he could put the mathematics of my system aside and simply flip a coin, and STILL win more trades than the best professional technical traders.
The reality, as told to me by pro technical traders and brokers, is that the most skilled, veteran technical traders win no more than 40% of their trades at best. They make money (the veteran professionals make money)...they make money through money management. It's fundamentally just making sure you lose small, and win as much as possible when you're right.
This means you could literally open a small account and sit in front of your MT4 platform flipping a coin, and make net profits with smart money management. On the 50% of trades where you win, you ride the trend and capture as much profit as you can before the currency retraces. On the losing trade (where you buy or sell incorrectly thanks to the flip of the coin)...on the losing trade, you simply exit quickly with the smallest possible loss.
Trade after trade, even if your wins are only a relatively small margin larger than your losses, you will still end up with net profits. And, inevitably, you will hit a trend or two that turn into significant profits and that will create significant net profits. (Because you NEVER lose big.)
This means that all you need to know in order to profit in forex is how to flip a coin and make a 50/50 guess. That's it. With smart money management, you will end up with a net profit.
But, let's also say you have some measurable advantage in identifying trends. Oh my goodness. What could happen? Well, you could make ridiculous profits if you could identify trends accurately just 60% of the time. But what if you could hit 70%, 80%, 90% or even better statistics in terms of identifying trends correctly? Well, you would have far fewer small losses and a LOT of much bigger wins.
What's more, because you have a measure of empirical, real time data, you would also have a higher level of confidence in terms of sticking with the trend after you've identified it. If you worked the mathematics for any period of time, your confidence would grow and you'd stick with a trade even as it makes a small retrace.
I just wanted to write this today so I could hopefully inspire a few of you who trade and read this blog to get positive and stay active making trades. Always remember that money management is smart. It's fundamental. You NEVER lose big. And if you NEVER lose big, while always trying to maximize your wins, then you WILL end the day profitable.
When you subsequently incorporate a trend identification system, whether it's flipping a coin or using my math based FX Power Hedge system, you increase your odds of picking a trend correctly. What you need to do perhaps more than anything is to forget technical analysis. It's misleading, and it causes far too many traders to stick with losing trades. The focus on historical data actually increases the number of bad decisions.
I'm sorry to be so negative about technical analysis. It's just the reality of what I experienced myself and what I've been told by countless traders who have stumbled onto my system one way or the other. They've lost money with flawed technical analysis. Or, they've been misled by false promises of profits through some miracle EA (and please...there isn't one single EA that works consistently long term). And when I put mathematics of price movement and time frame analysis in front of people, it's almost so brutally obvious that people have a difficult time getting away from historical data as wrapped up in the voodoo of technical analysis.
So here's the deal. Try flipping a coin. Just try it. Take one week with a demo platform and focus on your money management skills. Flip a coin to make buy and sell decisions. Win as big as possible and NEVER lose big. Do that for one week and compare your results to technical analysis. I think you'll be amazed, and perhaps start wondering why you never pulled that penny out of your pocket before.
But then, after the miracle of flipping a coin, you might consider the advantage of power hedge mathematics. It works.
First, the simple reality is that no one can predict the future. This is the fatal flaw of technical analysis. It seeks to use historical chart patterns to predict future price behavior. The problem is that history does not repeat itself with such precision, especially in such unstable economic times as we see worldwide today. So, 80% or more of all the people who get into forex lose all their money thanks to the flawed nature of technical analysis. (Sadly, this is the technique taught to just about everyone who gets into forex.)
Instead, I teach a system that does not attempt to predict the future. Instead, it uses real time data to make real time trading decisions. In the simplest of terms, the FX Power Hedge (my system) identifies trends through the combination of price movement and time frames. By synthesizing these two real time variables, as they transpire, calculations of statistical probability can be made and trends can be identified with consistent success.
So I was explaining this to a new trader and he was having a hard time UN-learning technical analysis, so I reduced it to statistics at the most basic level. I explained that he could put the mathematics of my system aside and simply flip a coin, and STILL win more trades than the best professional technical traders.
The reality, as told to me by pro technical traders and brokers, is that the most skilled, veteran technical traders win no more than 40% of their trades at best. They make money (the veteran professionals make money)...they make money through money management. It's fundamentally just making sure you lose small, and win as much as possible when you're right.
This means you could literally open a small account and sit in front of your MT4 platform flipping a coin, and make net profits with smart money management. On the 50% of trades where you win, you ride the trend and capture as much profit as you can before the currency retraces. On the losing trade (where you buy or sell incorrectly thanks to the flip of the coin)...on the losing trade, you simply exit quickly with the smallest possible loss.
Trade after trade, even if your wins are only a relatively small margin larger than your losses, you will still end up with net profits. And, inevitably, you will hit a trend or two that turn into significant profits and that will create significant net profits. (Because you NEVER lose big.)
This means that all you need to know in order to profit in forex is how to flip a coin and make a 50/50 guess. That's it. With smart money management, you will end up with a net profit.
But, let's also say you have some measurable advantage in identifying trends. Oh my goodness. What could happen? Well, you could make ridiculous profits if you could identify trends accurately just 60% of the time. But what if you could hit 70%, 80%, 90% or even better statistics in terms of identifying trends correctly? Well, you would have far fewer small losses and a LOT of much bigger wins.
What's more, because you have a measure of empirical, real time data, you would also have a higher level of confidence in terms of sticking with the trend after you've identified it. If you worked the mathematics for any period of time, your confidence would grow and you'd stick with a trade even as it makes a small retrace.
I just wanted to write this today so I could hopefully inspire a few of you who trade and read this blog to get positive and stay active making trades. Always remember that money management is smart. It's fundamental. You NEVER lose big. And if you NEVER lose big, while always trying to maximize your wins, then you WILL end the day profitable.
When you subsequently incorporate a trend identification system, whether it's flipping a coin or using my math based FX Power Hedge system, you increase your odds of picking a trend correctly. What you need to do perhaps more than anything is to forget technical analysis. It's misleading, and it causes far too many traders to stick with losing trades. The focus on historical data actually increases the number of bad decisions.
I'm sorry to be so negative about technical analysis. It's just the reality of what I experienced myself and what I've been told by countless traders who have stumbled onto my system one way or the other. They've lost money with flawed technical analysis. Or, they've been misled by false promises of profits through some miracle EA (and please...there isn't one single EA that works consistently long term). And when I put mathematics of price movement and time frame analysis in front of people, it's almost so brutally obvious that people have a difficult time getting away from historical data as wrapped up in the voodoo of technical analysis.
So here's the deal. Try flipping a coin. Just try it. Take one week with a demo platform and focus on your money management skills. Flip a coin to make buy and sell decisions. Win as big as possible and NEVER lose big. Do that for one week and compare your results to technical analysis. I think you'll be amazed, and perhaps start wondering why you never pulled that penny out of your pocket before.
But then, after the miracle of flipping a coin, you might consider the advantage of power hedge mathematics. It works.
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