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.
Friday, October 22, 2010
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.
Thursday, May 20, 2010
Why Forex May Be The Safest Place To Invest Today And Other Thoughts On The World And Mankind
Okay, I'm no major financial expert. But, these days and after losing a ton of money in everything BUT forex over the past couple of years, I consider myself well educated in where I make money versus where I lose it. So far, I've lost money in real estate holdings -- lost a ton of money earned in FOREX. Stocks -- lost a ton of money that I had previously earned in, uh, FOREX. So, seriously, I don't know who to trust anymore. Banks? I don't trust them. Fannie Mae and Freddie Mac cost a ton of investors a ton of money. Do I trust the FDIC to cover money on deposit in US banks? No. I don't even trust the U.S. government to honor all of its debts. Sadly I must report. But the same is true of every government on the planet.
So, what to do in today's hugely unstable world? Well, there is FOREX...which has yet to fail me in providing a path to make money and lots of it. PUTTING the money someplace safe -- that is another question. But, in terms of where to MAKE money in the first place, I contend still (as a novice relative to the financial world -- just a guy who figured out a system that works to make money in forex) -- I still contend forex is THE place to make money.
I use my FX Power Hedge system, and I greatly enjoyed a phone call today with a fellow working on the system and some new automation that may soon come out for you all. For now, the system is still manual because the mathematics behind the FX Power Hedge (www.FXPowerHedge.com) are simply too complex for the common EA. But, Jeff, I enjoyed speaking with you today. I hope you will be introduced to the whole base of power hedge traders out there soon if we get this concept working in automation. Meanwhile, there is a ton of money to be made with the system manually, and I also enjoyed that part of our chat. So.
Back to WHY forex is safe in my personal opinion. It's all about how the world governments conspired to create the perfect international monetary system about 30 years ago. A monetary system so remarkably genius in design that it CANNOT fail...forex.
It's painfully simple, and it's the reason we left the gold standard in 1973. Every currency in forex has a value in RELATIONSHIP to other currencies. There's no "real" value, like you have in gold or oil or a piece of real estate or a stock portfolio. But, frankly speaking, unless you own half of Saudi Arabia, or already possess a ton of gold, then you've probably lost money in real estate, stocks, or other investments, and you're looking for a safe, predictable, consistent way to make more money. You have a little money to invest now (or hey, a lot of money to invest in some cases if you know how to dodge bullets), and you just don't want to go to the casino of uncertainty that is basically the 90% of all other investments in today's world. Hey, would you like to buy some land in Greece?
That's why you turn to forex. That's why you LEARN forex. Because no matter how crazy things get, the collective world governments are NOT going to just go out of business. There's too much money in taxing the global population of all of us who work for a living. The system is too perfect for everyone in power from those directly in government to those in the major establishments from banks to corporations who are tied into those governments. The "establishment" (if I can use an old school term from when I was in school back in the day) -- the "establishment" is NOT going to let the collective set of world governments go broke.
This means the MONEY or currency of each government will stay alive and continue to be valued against every OTHER currency. It's kind of like making up the value of your money as you go along. That's all the collective set of world governments merrily perpetuate every day in forex. The Euro goes up and down. The dollar, yen, you name it -- they all go up and down, and people buy and sell, and the GOVERNMENTS continue to collect taxes and life goes on. I don't mind this system. Hey, I simply accept it as the way it is, and I figured out a way to make my own money from it!
So, I'm not endorsing how the collective set of world governments set up this "paper" value system. But hey, it is what it is. It's forex. And they even set up rules like the high leverage up to 500 to 1, so THEY could make big money (and now WE can also make big profits thanks to our ability to access what used to be just the private government country club investment system). Well, forex is now open to the public, and you're missing out if you haven't figured out that this is where the action is in terms of making money through investing. Or, perhaps you'd prefer to wait out the real estate market in the U.S.? Or how about purchasing stock in that roller coaster casino called the NYSE? Yeah. Those are better choices. Play poker online instead.
I apologize for sounding skeptical about so much in the world. But look around.
There are wars and other such things around the world all the time. The occasional acts of terrorism happen far too frequently. But all that's about politics, and I really don't care about politics. I can't buy a house or a car or a steak with political opinions. I care about what matters to me and my life...money.
Money is what REALLY makes everything work on this planet today. And I don't need to tell you. If there are people out there fighting over something, it's usually a conflict based on money or some other nature of wealth. I'm not going to get into the religious-based conflicts, because I honestly don't believe (with a few radical and perhaps misguided exceptions granted) that there actually are "religious" wars in today's modern world. I seriously believe it's all about the money...all the time and all over the world. If some guy blows himself up somewhere, I am personally of the opinion that some other guy convinced him to hit the red button on his vest because there's money or wealth or something behind the set of perverted beliefs that ended up splattering that poor sucker's guts all over whatever place he chose to make a point. Again, it's always and all about the money. Or the land. Or whatever is viewed as wealth.
Which brings us back, oddly enough, to forex. It's always about the money. And the world's population of government leaders will NEVER let their national currencies just evaporate in terms of value. They'll always have one currency valued as whatever against the other currencies, and that is the incredible beauty of forex. Currencies in this system NEVER have a collective value of zero!
They can NEVER be totally worthless! If one goes down, then the other goes up. No matter how screwed up things may be all over the world, if one currency goes down in value then the other is going up -- that's how the whole system is designed. It's set up NEVER to fail.
These are the RULES of our international monetary system backed by the world's governments...the guys in ultimate power over civilized existence. Their currencies will NEVER achieve zero value, even if national debts go nuts. As long as there's paper, you can spend it. It's money. And, according to the governments who put their name on that paper (and who keep armies all over the planet to make sure their respective names are spelled correctly on each piece of their unique cash paper), money will have value. Each country's money will be relatively higher one day and lower the next or whatever. But the money's always going to have value...it has inherent value thanks to the rules of forex. About three decades ago, the world's governments actually came up with a system that turned paper into gold. No kidding. This is forex, and it's what will forever keep today's governments in control and free to collect taxes.
The only remotely possible way that today's portfolio of global paper money would ever become worthless is if some collective bunch of people organized worldwide and somehow managed to destroy the collective bunch of national governments long organized around the world and backed up by lots of guys with lots of guns. I will, personally, place my bet on the collective bunch of world governments with big capital cities and embassies and armies...I wager they will prevail one way or the other for quite a while. And thus, their money will continue to have value.
Those of us who can collect more of this paper by trading based on those highs and lows of the world's government paper in forex...well, we can buy more of the stuff available for purchase with that special paper we call money.
So, I know this has been kind of a skeptical post. I intended to take the absolutely most skeptical view of the world I possibly could (turned out to be mostly realistic perspective...hmm), and still end up in an interesting place...a good place for those of us who earn our living in forex. No matter how bad things may look in terms of global economics. No matter how crazy politics and conflicts may get at different points in time. No matter who's fighting in the streets or where...money will ALWAYS have value.
Thanks to forex, believe it or not, MONEY IS NOW AND FOREVER WILL BE WORTH EVERY BIT OF THE PAPER IT'S PRINTED ON.
Forget the idea that money is just paper. Bull. Liquid paper money is true wealth, and this globally recognized paper money in whatever currency buys things. Paper money. Simply put. THAT is always going to have value in our world. You may move it around most of the time electronically, and perhaps never have much in terms of paper in your hands for actual spending in person. That's the world we live in. But the numbers that represent the cash money you have in this forex account or that bank account...that's the true and real wealth of this world which will never go away.
Why? In the end, the biggest reason is because it cannot go away. The "value" of paper money just as we trade it every single day in forex CANNOT disappear, or there would be total collapse and we'd next be trading cans of beans in order to get through the day. We're not going back to a barter system though. Trust me on this one.
So if you have uncertainty about the economy. I understand. So do I. I have uncertainty about governments around the world. I don't trust my own nation's leaders, much less grant any nation's leaders the courtesy of assuming there is one ounce of integrity in anyone's soul. I don't believe there's much integrity or honesty left on the planet. I'm very sad to say that, but I have observed so much cheating and deception that I'm left to conclude that there is one and only one common thing all humanity shares to maximum extent top to bottom...President to Prime Minister to people on the street.
We all share a sense of incredible and relentless greed.
We're a human population who all want more all the time. This drives forex. This drives everything that goes on every day. We all want more, and those of us who worry about losing what we have accumulated are challenged daily to find safe places to keep our wealth. Those of us who want more (which is basically everybody) have had an increasingly difficult challenge finding trustworthy places to invest and earn profits.
The exception is the group of us who invest in forex. Cause we're investing our money in MONEY. And, money makes the world go round. So like it or not. Agree that things are bad or not. Doesn't matter. I would challenge anyone out there to contend in a reply that MONEY is anything less than the most powerful substance on earth.
That's why I continue to invest in forex. That's why I know the money traded in forex will ALWAYS maintain value. That's why I continue to put my money into forex trades. Cause I'm liquid, and I'm invested in the most important thing to every leader of every government on the planet...their national currencies.
I like that every world government puts their highest priority on protecting the value of the ONE thing I'm invested in...their money. So bravo forex. That's why I trust this one and only system to endure through good times and bad...certain uncertain days.
Visit my site and learn more about how to make more money in forex. And if you think I'm being too skeptical about humanity and greed and money, then tell me truthfully that you don't want money and you've never purchased a lottery ticket. Then tell me why in the world you bothered to visit this website about forex? For more on me and how I win at forex...www.FXPowerHedge.com. And seriously, I hope I didn't offend anyone with my views. It's just how I see the world these days. I'm not proud of the world I see. But I think this is our unstable, uncertain, unruly real world, whether we like it or not. I simply choose to live a bit more comfortably in it thanks to forex.
So, what to do in today's hugely unstable world? Well, there is FOREX...which has yet to fail me in providing a path to make money and lots of it. PUTTING the money someplace safe -- that is another question. But, in terms of where to MAKE money in the first place, I contend still (as a novice relative to the financial world -- just a guy who figured out a system that works to make money in forex) -- I still contend forex is THE place to make money.
I use my FX Power Hedge system, and I greatly enjoyed a phone call today with a fellow working on the system and some new automation that may soon come out for you all. For now, the system is still manual because the mathematics behind the FX Power Hedge (www.FXPowerHedge.com) are simply too complex for the common EA. But, Jeff, I enjoyed speaking with you today. I hope you will be introduced to the whole base of power hedge traders out there soon if we get this concept working in automation. Meanwhile, there is a ton of money to be made with the system manually, and I also enjoyed that part of our chat. So.
Back to WHY forex is safe in my personal opinion. It's all about how the world governments conspired to create the perfect international monetary system about 30 years ago. A monetary system so remarkably genius in design that it CANNOT fail...forex.
It's painfully simple, and it's the reason we left the gold standard in 1973. Every currency in forex has a value in RELATIONSHIP to other currencies. There's no "real" value, like you have in gold or oil or a piece of real estate or a stock portfolio. But, frankly speaking, unless you own half of Saudi Arabia, or already possess a ton of gold, then you've probably lost money in real estate, stocks, or other investments, and you're looking for a safe, predictable, consistent way to make more money. You have a little money to invest now (or hey, a lot of money to invest in some cases if you know how to dodge bullets), and you just don't want to go to the casino of uncertainty that is basically the 90% of all other investments in today's world. Hey, would you like to buy some land in Greece?
That's why you turn to forex. That's why you LEARN forex. Because no matter how crazy things get, the collective world governments are NOT going to just go out of business. There's too much money in taxing the global population of all of us who work for a living. The system is too perfect for everyone in power from those directly in government to those in the major establishments from banks to corporations who are tied into those governments. The "establishment" (if I can use an old school term from when I was in school back in the day) -- the "establishment" is NOT going to let the collective set of world governments go broke.
This means the MONEY or currency of each government will stay alive and continue to be valued against every OTHER currency. It's kind of like making up the value of your money as you go along. That's all the collective set of world governments merrily perpetuate every day in forex. The Euro goes up and down. The dollar, yen, you name it -- they all go up and down, and people buy and sell, and the GOVERNMENTS continue to collect taxes and life goes on. I don't mind this system. Hey, I simply accept it as the way it is, and I figured out a way to make my own money from it!
So, I'm not endorsing how the collective set of world governments set up this "paper" value system. But hey, it is what it is. It's forex. And they even set up rules like the high leverage up to 500 to 1, so THEY could make big money (and now WE can also make big profits thanks to our ability to access what used to be just the private government country club investment system). Well, forex is now open to the public, and you're missing out if you haven't figured out that this is where the action is in terms of making money through investing. Or, perhaps you'd prefer to wait out the real estate market in the U.S.? Or how about purchasing stock in that roller coaster casino called the NYSE? Yeah. Those are better choices. Play poker online instead.
I apologize for sounding skeptical about so much in the world. But look around.
There are wars and other such things around the world all the time. The occasional acts of terrorism happen far too frequently. But all that's about politics, and I really don't care about politics. I can't buy a house or a car or a steak with political opinions. I care about what matters to me and my life...money.
Money is what REALLY makes everything work on this planet today. And I don't need to tell you. If there are people out there fighting over something, it's usually a conflict based on money or some other nature of wealth. I'm not going to get into the religious-based conflicts, because I honestly don't believe (with a few radical and perhaps misguided exceptions granted) that there actually are "religious" wars in today's modern world. I seriously believe it's all about the money...all the time and all over the world. If some guy blows himself up somewhere, I am personally of the opinion that some other guy convinced him to hit the red button on his vest because there's money or wealth or something behind the set of perverted beliefs that ended up splattering that poor sucker's guts all over whatever place he chose to make a point. Again, it's always and all about the money. Or the land. Or whatever is viewed as wealth.
Which brings us back, oddly enough, to forex. It's always about the money. And the world's population of government leaders will NEVER let their national currencies just evaporate in terms of value. They'll always have one currency valued as whatever against the other currencies, and that is the incredible beauty of forex. Currencies in this system NEVER have a collective value of zero!
They can NEVER be totally worthless! If one goes down, then the other goes up. No matter how screwed up things may be all over the world, if one currency goes down in value then the other is going up -- that's how the whole system is designed. It's set up NEVER to fail.
These are the RULES of our international monetary system backed by the world's governments...the guys in ultimate power over civilized existence. Their currencies will NEVER achieve zero value, even if national debts go nuts. As long as there's paper, you can spend it. It's money. And, according to the governments who put their name on that paper (and who keep armies all over the planet to make sure their respective names are spelled correctly on each piece of their unique cash paper), money will have value. Each country's money will be relatively higher one day and lower the next or whatever. But the money's always going to have value...it has inherent value thanks to the rules of forex. About three decades ago, the world's governments actually came up with a system that turned paper into gold. No kidding. This is forex, and it's what will forever keep today's governments in control and free to collect taxes.
The only remotely possible way that today's portfolio of global paper money would ever become worthless is if some collective bunch of people organized worldwide and somehow managed to destroy the collective bunch of national governments long organized around the world and backed up by lots of guys with lots of guns. I will, personally, place my bet on the collective bunch of world governments with big capital cities and embassies and armies...I wager they will prevail one way or the other for quite a while. And thus, their money will continue to have value.
Those of us who can collect more of this paper by trading based on those highs and lows of the world's government paper in forex...well, we can buy more of the stuff available for purchase with that special paper we call money.
So, I know this has been kind of a skeptical post. I intended to take the absolutely most skeptical view of the world I possibly could (turned out to be mostly realistic perspective...hmm), and still end up in an interesting place...a good place for those of us who earn our living in forex. No matter how bad things may look in terms of global economics. No matter how crazy politics and conflicts may get at different points in time. No matter who's fighting in the streets or where...money will ALWAYS have value.
Thanks to forex, believe it or not, MONEY IS NOW AND FOREVER WILL BE WORTH EVERY BIT OF THE PAPER IT'S PRINTED ON.
Forget the idea that money is just paper. Bull. Liquid paper money is true wealth, and this globally recognized paper money in whatever currency buys things. Paper money. Simply put. THAT is always going to have value in our world. You may move it around most of the time electronically, and perhaps never have much in terms of paper in your hands for actual spending in person. That's the world we live in. But the numbers that represent the cash money you have in this forex account or that bank account...that's the true and real wealth of this world which will never go away.
Why? In the end, the biggest reason is because it cannot go away. The "value" of paper money just as we trade it every single day in forex CANNOT disappear, or there would be total collapse and we'd next be trading cans of beans in order to get through the day. We're not going back to a barter system though. Trust me on this one.
So if you have uncertainty about the economy. I understand. So do I. I have uncertainty about governments around the world. I don't trust my own nation's leaders, much less grant any nation's leaders the courtesy of assuming there is one ounce of integrity in anyone's soul. I don't believe there's much integrity or honesty left on the planet. I'm very sad to say that, but I have observed so much cheating and deception that I'm left to conclude that there is one and only one common thing all humanity shares to maximum extent top to bottom...President to Prime Minister to people on the street.
We all share a sense of incredible and relentless greed.
We're a human population who all want more all the time. This drives forex. This drives everything that goes on every day. We all want more, and those of us who worry about losing what we have accumulated are challenged daily to find safe places to keep our wealth. Those of us who want more (which is basically everybody) have had an increasingly difficult challenge finding trustworthy places to invest and earn profits.
The exception is the group of us who invest in forex. Cause we're investing our money in MONEY. And, money makes the world go round. So like it or not. Agree that things are bad or not. Doesn't matter. I would challenge anyone out there to contend in a reply that MONEY is anything less than the most powerful substance on earth.
That's why I continue to invest in forex. That's why I know the money traded in forex will ALWAYS maintain value. That's why I continue to put my money into forex trades. Cause I'm liquid, and I'm invested in the most important thing to every leader of every government on the planet...their national currencies.
I like that every world government puts their highest priority on protecting the value of the ONE thing I'm invested in...their money. So bravo forex. That's why I trust this one and only system to endure through good times and bad...certain uncertain days.
Visit my site and learn more about how to make more money in forex. And if you think I'm being too skeptical about humanity and greed and money, then tell me truthfully that you don't want money and you've never purchased a lottery ticket. Then tell me why in the world you bothered to visit this website about forex? For more on me and how I win at forex...www.FXPowerHedge.com. And seriously, I hope I didn't offend anyone with my views. It's just how I see the world these days. I'm not proud of the world I see. But I think this is our unstable, uncertain, unruly real world, whether we like it or not. I simply choose to live a bit more comfortably in it thanks to forex.
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