Posted by: joetradingplace | April 2, 2015

Make the Big Banks and Hedge Funds work for you

Retail traders are very small and can’t move price in forex, we know that the big players move the market and they mainly implement trend following systems. Since we know that we can’t move price, our own edge comes from following the footsteps of the big traders. When they move the price, they leave footsteps, your job as a retail trader is to follow those footsteps. So the big traders are doing all the hard work whilst you just follow behind them. Looking at the eurusd and eurjpy downtrend, i still have sell positions some from last year…the traders who move the markets have been doing all the handwork for me by pushing price down, whilst I continue taking partial profits and letting other positions run. Don’t make trading very difficult by trying to find the most complicated trading system, implement trend following method by playing pullbacks and rallies or even breakouts. I know new traders will have to try every system on forums and even google ‘The best forex system’….until you start trading with the big money flow (trend following), you will find it difficult to grow an account.Go back to all the books that talk about successful traders, most of them have been trend followers from the likes Jesse livermore, John W Henry, etc…..

If you are continuously losing money, take a step back and see where you are going wrong, try to implement a simple trend following method + good risk/reward + let your profits run. If you still keep losing money, take another step back and work on your trading psychology. If you are still losing money take a break and come back with a fresh mindset.

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Responses

  1. If you are loosing money consistently with a moderate leverage ,just trade against yourself .Take a position on demo account and reverse it on your real account.


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