Why Trading Forex is so Difficult - Randomness in the Markets: Clusters of Bad and Good Luck
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- Опубликовано: 6 мар 2017
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Why Trading Forex is so Difficult: Randomness in the Markets: Clusters of Bad and Good Luck. David Paul, Financial Trader comments. If you found value in watching this video, PLEASE LIKE AND SHARE so we can do more! It is always my understanding that it is difficult to make money long term when trading currencies and indices - how do you manage? Most trend following systems have less than a 50% correct hit rate. This means that you get a series of losing trades from time-to-time - how good would you be with executing your system with precision when you get 5 losing trades in a row.
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dont listen to a forex trader who says its easy. he hasn't hit the wipe out yet. trading forex is a humbling experience. theres absolutely nothing 'easy' about trading currencies.
If it was easy then everyone would be doing it...
He’s only 24; that’s what trading does to you
Even if u win 50% of the time with Risk:Reward = 1:2, you are still profitable. If u win 30% of the time with Risk:Reward = 1:3, u r still profitable.
Trading is Mind Game.
It tests your Patience to wait for the perfect entry. Sniper Entries? They are done after a setup forms on Daily. Then wait for a setup of 4H, then 1H and then take the shot. This process requires PATIENCE. Trust the process and you will win.
I am quite profitable in Forex and been working very hard for the last 2 years. It was a great journey. It fucks with your mind, but you have got to be Patient. No greed.
This master just summerized entire successful trading in just few sentences. Take a bow for your experience n wisdom sir.
i am just starting to learn trading at 62. My son said this is what teenagers do. I will show him wrong! FX is like Chinese to me now but i will become a successful institutional trader!
Well said. The best trader are not the ones with high IQ, PhD in math, nor the technical or fundamental analyst expert, but the ones who arent mentally destroyed in bad times and still have his own alarm and rationality in good times.
I have to agree with him, it gets hard to check myself when my trades are going right, there is a sense of invincibility that comes when you are getting it right and it can be also be devastating if you end up in the chop. Discipline is everything in trading!
Risk management is everything. Profits take care of themselves.
The psychology of trading is the hardest aspect to overcome!
Legend has it, he’s still holding eye contact!
I've learned that blocking the emotions and sticking to the strategy even during a bad run is a good habit to have. I've managed to lose 5% over 5 trades and then made it back to break even in one trade. Patience and persistence. And never stop learning.
That shit stressed me so bad that I started coming out of remission from my thyroid issues. I had to quit Trading Forex recently. My health and well being are my most important investments.
I loved this interview. That was liquid gold running from his mouth, shining diamonds of knowledge in every sentence. So good, so so good
Listening to this confirmed a crucial mistake I used to make for years and now corrected. "YOU DON'T PICK THE TREND FROM THE DAILY!" The randomness from the daily to lower TFs increases as you go lower. The trend picking should always and only come from the Monthly/Weekly TFs. Know this and have peace!
My best trading week i was taking huge risks, around 10-20% per trade, i was very emotional too because of lot size.What made me tons of money was just adding to winners, cut losses when i realize i was wrong and sticking up with a strategy. Now a days im too scared to do it again, just thinking that 3 or 4 wrong trades could have destroyed me...but ended up very very good. Number 1 rule: go with trending markets, dont try to find the top or the bottom
Two words Risk Management 👌
Excellent interview. Key point for me is managing risk. Forget about how many losing trades you have just try to keep them small and let your good trades play out. In practice you can have more losing trades than winning trades and still turn a profit if you have the discipline to cut your loses and let the winners run.
10million points for saying "muthi". this Zulu will now listen to you for ever
I could listen to him talk about forex for hours - this is gold.
Hey man, I feel you bro. Lost a lot of my money in the beginning, then really opened my eyes and listened to real investors. Now I just buy long term stocks, etfs, index’s and just focus on compounding. I don’t even check my account anymore, but every time I do, it goes up higher and higher. Slowly, but it really works. Day trade and swing trade really screwed me over.
As a forex trader it's almost inevitable that you're going to experience some ups and downs along the way. Alertness and decisiveness are both fundamental in the recipe for a successful forex trader.
This right here is one of the BEST video i've ever come across on RUclips
He said it all "Market makers & Algos". They control the market very carefully, markets are not random. What is "random" is your outcome or results in the SHORT TERM.
Everything this man has said is great content.
One of the best interviews!
I remember this video since 2018, and that was an " WOW ! Moment " for me. Thanks a lot for sharing a such inspiring interview.
Honestly he's 100% right. I've been on and off with forex but recently I came across some really good risk management advice and a simple strategy and honestly my mind is blown. I'm pretty busy rn so I haven't even got around to setting up a new demo account but I've been watching the charts when I get a break and just watching and there is money to be made if you can stick with it. The strategy doesn't necessarily get you out at the best time it's consistent in being right more often than not. Add risk management and you're good. At least it appears that way.....I'll know in a couple months.
Good lesson, biggest trade he ever had was one he forgot about. I think we are our own worst enemy. Winning trade? Let that shit run. Easier said than done. :)
I've been day trading full time for 4 years now. About 50% of my trades are in the forex. Its a different beast for sure from stocks or futures but it isn't more difficult imo. You need different strategies. Its more similar to trading penny stocks. True that with every trading strategy or system even if you have a 80-90% strike rate you will hit draw-downs sometimes many in a row although that isnt typical. Any vetran trader will tell you they dealt with these things early in their careers but that goes away after a while. The psychology angle he's referring to is mostly for new traders. Those big bets hes referring to i went through as well. i cut that shit out long ago. Gotta manage your risk and position size constantly. There is some silly stop hunting going on in forex for sure
I believe the key is to know when to leave it alone. I'll wait weeks if necessary until I see a clean, clear trend. I've lost too much trying to trade anything else.
Love how he just quitely slipped in how he trades at the start. Clearly no hidden agenda there.
Had not thought about it being clusters before... very interesting... I like "The objective of doing business is doing business with the least risk"... Thanks for being a blessing and sharing...
Forex is difficult not because of the randomness of the market (because it's not random as u may think) but the ability to control your emotions
You are correct. It is all about self-discipline when making & losing money. In forex, you must gauge risk every moment and regulate your position size and stop loss to weather the storms (clusters of luck). If you are disciplined enough on your risk, you won’t even need a stop loss, and can focus on your profit taking spots.
This guy give some of the best advice on the entire Internet in less than 10 minutes
Wow, this gentleman just described what have been my observations and conclusions after 6 years of trading. Unfortunately, as simple as it all sounds, it takes years of losing money to reach those conclusions. To be a profitable trader, you have to have very clear in your mind how probabilities work, which by the way, most of the time, are counter intuitive.
This is a masterclass from the best.This guy has the best advice I have heard from anyone I've heard.11/10 sir.......110%.....
Trading FX is the most difficult thing I have ever done.. but I wouldnt want to do anything else.
love this vid, great discussion...this is a must watch/listen for every trade.
wow. My inner divine voice just got replaced. Spot on. A week of wins and I got cocky at NFP day of all days. 😅 Wiser for it.
This is so true, I have experienced all those states!
Love this guy. How straight forward he is.
This is one of the best videos I have ever watched so far
Thanks
Keep more videos coming
This videos teaches me a lots how to go along way with my forex trader
He is somewhat correct, you will lose in the fx market if you are gambling but if you have set certain rules then you can execute every trade with accuracy ! 99.99 % of traders are speculators which is why so many traders lose. speculation is the form of all evil. if you don't have a winning system Don't trade !
It's all about RISK MANAGEMENT, assuming you do you technical (chart) analysis thoroughly, based on proven historical trends, and thus enter a viable trade, then put in place a trailing stop loss of 1 or 2% of your a/c, you can't go far wrong. You may have say 3 or 4 losses before you have a win, but if those losses are small and controlled, you should make steady gains over time.
bang on.after experinnicingg such issue i hv learnt risk management is always necessary.
Very true. That is something fundamental stuff for FX trading he is talking.
Appreciate your perspective, thanks for the video
I'd walk through glass to be this man. He's on whole another level.
This is legendary.. Great man he summarized our work💹🚀
there is a simple solution to all this (Because of Market Manipulation.. I call it the Snail and the hare), Distant your stops and trade short ( meaning a psychological not to think big, because big is a gamble) trade with low constant profits, follow the trend and sell if you have to and stay ahead.
I will forever appreciate this channel, you've helped me and my family a lot, your videos, advice and lessons are inspirational helpful to us, we all love you
This video was one of the many keys that sparked my profitability in the markets, I come back to it often. Thank you ❤
Excellent interview.
He's not lying here he's talking about the real reason why traders fail it all comes down to risk management.
One of the most important things if you're going to be a trader is psychology. What he speaks of around 05:00 is squarely a psychology issue. Best material on this subject is Mark Douglas' books, The Disciplined Trader and Trading In The Zone, which audiobooks are in abundance on YT. Choose which one works best for you bc they are not all the same.
This guy is unbelievably honest. He sounds like success is all about understanding statistics and risk /Money mgmt, not about market knowledge!
I would like to thank UKspreadbetting for running these videos, especially the man in this one. He recommended a book to read from Mr. Toppel. I just started reading this book and it started to make sense about trading the FOREX for me. I was basically "nuking" it from all the research I have been doing to try and build my trading skills. Sometimes you have to take a step back to take two steps forward. Its a true statement. Thank you UKspreadbetting!
Let's have a profitable week Traders!!! Bless up!
What an excellent video, so absolutely true. Clusters of good and bad luck are to be expected, but my ability to navigate both needs a lot of work
Just can say... WOW!!! I'll surely be watching this video a gazillion times!
Now this is the best video I have seen in a long time. Well explained with the mathematics of probability too.
feel like i've just been hit by a truck, He had me on every word. Exceptional.
David Paul is phenomenal. This video is like a trading Bible.
Six years later and your information is still relevant 🙌
Wow, so glad I stumbled upon this guy. His crocked tie exudes wisdom.
Awesome interview, thank you!
1000% agree , very well said
TRUST ME i have been able to help a lot of people make more profit and myself as well from the help of all your videos and sessions i have been listening to. you are such a great teacher and a friend...... i will continue saying a big thank you
David was just on point. Hope he is ready to coach newbies on his avid risk management strategies
His best trade was when he didn't touch his position for a few days. I always thought it's the best strategy ;)
This guy is a great story teller , so entertaning !
top top man. wisdom and knowledge with no ego.
True, i lost everything by getting overconfident after a good run
Thank you so much Sir. I love this. I really hate forex trading, because there is no intrinsic value and has no physical location and its a decentralized, it is better to go with stock market registered in Stocks exchange. . .
I like his analogy. funny but 100% correct!
Unbelievebly excellent stuff...That is in my opinion proof that you can find real pearls on the web.
This one was amazing! Thanks!!
Great video. One of the best I've seen for trading after 5 years learning
Best interview I ever seen. Honest funny guy and confirmed most of my assumptions of the market.
Just wanted to say thankyou for all the wonderful videos
Sir Forex may Be Deficult but India index option is 😢
Great interview 👍 every successful trader knows that every decision comes with an element of risk, but you must be able to manage it.
Now I understand how my Grandma feels When I Try to Explain social media to Her 😂 😂 😂
@Allan Mena
I agree with you those who know how to trade forex will never tell you......
There are a number of strategies out there. Risk management is the key, as the video suggested. If you want a strategy, go to babypips. Also, this channel has a number of good ones. Mark posts them all the time.
I need this guy as a mentor, great tips on psychology :)
One of the best interviews on trading I have watched. A fascinating insight into the strategies of a very sharp mind! Excellent!
his first sentence , a gem already!
How have I never come across this master before.
Brilliant stuff. That's exactly how it is.
Experience is the best teacher.
This man is very thoughtful. Couldn't agree more with him
Really appreciate the upload, thanks.
🎉Hit £200k today. I'm really grateful for all the knowledge and nuggets you had thrown my way over the last months. Started with £20,000 June 2022.❤️
Very good and understandable way to display the "why's" of good and bad Luck going on!...
Great video very useful and precise. Thanks a lot.
Hommie didnt mention about the green space on roulette...
14days of hardwork and focus can put you many years ahead i just got into forex and I made my first profit wish I knew about this earlier
Dr David Paul, Must be one of the most interesting Traders ive come across on RUclips. I wish he was my Grandad, i could listen to him all day telling his storys. 😀
Onr of the smartest man I've seen lately
i think i'm going to watch this chap everyday before i put any trades on