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Friday, July 13, 2007

Conventional Forex Trading Systems(Tutorial- Part II)

Friday, July 13, 2007

Anyway, let’s go back to our forex trading system conversation. I started talking about Forrest Gump, and there is a reason why I started talking about it. Before I start talking to you about my forex trading approach and my forex trading system, I think you will appreciate knowing my simplistic approach to business, and making money in life. I am kind of dumb like that. When I first started trading forex, I would read these books and listen to these forex mentors, economists, and other experts. They would mostly wear suits and glasses, and I could never figure out whether they wore glasses because they had bad vision or whether they wore them because they wanted to look smart. I would read all these forex books, I would listen to these experts on CDs, I would watch them on a DVD, and they gave a lot of information, and answered a lot of questions, except one, they never seemed to be able to tell you how to actually make money by trading forex. At first I thought they were hiding something, but then I figured out that they most likely didn’t know themselves. They would talk about all kinds of technical indicators, and global effects of oil or China or whatever else, but they never talked about how to actually take that information and make money with it.

Different people had different trading approaches. Some of them seemed to teach to trade when some lines crossed, others seemed to teach you how to trade based on some formula of an ancient philosopher, who figured out a formula for multiplication of rabbits. Others seemed to tell you to sell when there was a shooting star or a hanging man. I spent two weeks, looking out of my window into the sky and other people’s windows, just trying to find shooting stars, and trying to find people that were about to hang themselves. But after a while I figured out, that a hanging man and a shooting star was some kind of a candlestick graph pattern. If I knew that from the beginning, I could’ve saved my neighbor Billy from hanging himself, but instead I tried to take advantage of the hanging man opportunity, and ran to my forex platform, and went short on EUR/USD. That didn’t seem to help. Billy died, and I lost money. First I thought of myself as a failure, because I just couldn’t figure out the relationship between formulas of multiplication of rabbits, hanging people, shooting stars, and some other things. I even went to a store and bought a suit and a set of glasses, thinking that it would put me somewhat closer to the experts that were teaching me, but that didn’t seem to help either. Glasses simply blurred my vision, and since it was too hot, I couldn’t wear the suit, because I started sweating so much that even local homeless people started giving me money, because I smelled so bad. So I figured I had to find another way of making money in forex, I had to figure out and create my own forex trading system.


And again, like Forrest Gump, I was a little bit dumb, and I couldn’t understand all those complicated technical indicator formulas. I just had to rely on my good old logic, and remember other ways that I used to make money, and I feel that I should tell you the other ways that I used to make money, so that when I talk to you about my forex trading system, it makes more sense to you.

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