JonathanHob replies to: How can we avoid losing trades? – discussion thread


A foreign currency exchange trader can earn good money if he can ensure successful trade executions via right trading decisions. In order to avoid losses, a forex trader should try to acquire sufficient trading skills and knowledge with the help of demo trading accounts. And it is wise to develop proper trading attitude before start trading with live accounts to avoid losses. Apart from the knowledge accumulation, a trader should try to manage his funds and time in a proper way.

Thank you for your reply. I really appreciate it a lot!

I agree, that the right trading decisions make you successful. Question: what, in your opinion, are good decisions? For example,
– Decisions based on indicators (like Moving Averages)? Forex teachers argument that MAs work, while scientists might say otherwise: Random Walk Theory; there is no proof (It is nowhere to be found.) that Moving Averages make profit consistently (looking at sharpe, P/L). Moving Averages are not statistically significant. Also, unlike the name Moving Average it is not a real significant average. And then a third party: news announcers, use Moving Averages to show us the main trend. Many traders (retail and SM) will therefore use MAs and because many people uses it, the direction bias of MAs may work. So, which of the three do you think is right?
– To what extent is the market random? Which cycles and patterns are working and why? To what extent can we predict the market (direction, volatility and ADR)?
– Half of the traders ‘believe’ that banks (tier 1 and 2) move the forex market, while others believe that most traders use S/R levels from Moving Averages and therefore the S/R exists (and works), Law of self-fulfilling prophecy. And others believe in Virtu (HFT) that for 90% controls the forex market. Who do you believe is correct?

Once you’ve read the sources, I’d like to hear your answer:
– “why have you accepted the price-predictability assumption?”
– “Is successful trading more dependent on skill than luck?”

Info banks and HFT:…e-forex-market…uring-weekends



“In 2009 the top five banks commanded a 61.5 percent share of the market, and the top 10 close to 80 percent.”
1. Citi 12.9 pct Citi 16.1 pct
2. JP Morgan 8.8 pct Deutsche 14.5 pct
3. UBS 8.8 pct Barclays 8.1 pct
4. Deutsche 7.9 pct JP Morgan 7.7 pct
5. BAML 6.4 pct UBS 7.3 pct
6. Barclays 5.7 pct BAML 6.2 pct
7. Goldman Sachs 4.7 pct HSBC 5.4 pct
8. HSBC 4.6 pct BNP Paribas 3.7
9. XTX Markets 3.9 pct Goldman Sachs 3.4 pct
10. Morgan Stanley 3.2 pct RBS 3.4 pct

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