Forex Scalping Systems - Beware of Curve Fitting or Lose!
by kelly Price
Forex scalping systems are more popular than ever and they all come with great track records, which have unbelievable gains and their very tempting for novice traders but what they need to be aware of is - curve fitting which ensures that most scalping systems lose money.
Curve fitting is when a vendor bends his system to fit the data.
When the vendor can't get the system to work, he keeps adding more rules and parameters in until it does, by bending the system to fit the data or curve fitting. He then has a track record he is satisfied with or more to the point gives him a great track record he can sell.
What happens next?
No two periods of data are going to exactly replicate themselves and the system simply collapses and loses in real time trading.
LOOK FOR THIS DISCLAIMER!
The buyer scratches his head and wonders why - but if he looked for this on the track record he can find out if its curve fitted. Look for the disclaimer below (or similar) on any system you buy - this is standard CFTC one.
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
If you are looking at buying a forex scalping system from a vendor, beware there all curve fitted.
You will NEVER find one with a real time track record, as forex scalping simply doesn't work by the very nature of the logic its based upon.
The time period is simply to short.
All volatility in daily or hourly time frames is random - support and resistance is meaningless and prices can and do go anywhere in a day. It's impossible to get the odds in your favor and forex day traders always lose long term.
Of course it makes a good story and naïve and greedy traders buy it and vendors know this.
They simply tell the story add a simulated track record and appeal to their greed - it's a big industry.
If you want to trade forget forex, forget scalping systems or day trading and trade longer time periods, where you can get the odds in your favor.
Leave forex scalping systems to the dreamers and greedy traders, get the right forex education and enjoy currency trading success by using longer time frames and valid data.
FAPTURBO FOREX TRADING PACKAGE
Fapturbo Is The Only Automated Forex Income Solution That Doubles Real Monetary Deposits In Under 30 Days. No Backtest Tricks. The Best Converting And Best Performing Forex Product On The Planet, Period. No Wonder It Sells Like Candy.:
click here for more Information
1
2
1
1
1
Forex Scalping Systems - Beware of Curve Fitting or Lose!
Wednesday, March 11, 2009 Beware, Curve Fitting, Forex Scalping Systems, Lose
Forex Trading - Answer This Simple Question Correctly or Lose!
Tuesday, March 10, 2009 Correctly, forex trading, Lose, Simple Question
Forex Trading - Answer This Simple Question Correctly or Lose!
by kelly Price
So you want to win at forex trading? Well here is one simple question you must answer correctly with no hesitation - if you can you could be a winner if not forget forex trading. Here is your question:
My trading edge (the reason I will win when 95% of traders lose) is then define it:
Now a trading edge is essential and it's something you MUST have, understand what and why it gives you an edge, so you have confidence in it, to lead you to success.
Trading edges come from within and their personal and their based upon this:
Understanding = Confidence = Discipline = Forex success
A TRADING EDGE IS NOT
- Following expert news stories - Day trading or scalping - Following a system from a vendor blindly - Buying low and selling high - Predicting price moves in advance - Believing markets move to a scientific theory - Believing forex trading is easy - The more knowledge you have the better - The more complicated your forex trading system the better
If you think any of the above will lead you to currency trading success - your wrong and need to continue your fore education. The above are common myths there are many more but the above are believed by the bulk of losers and their the majority 95%
Consider the figure 95% it's a lot!
So how do you win?
There are no secrets to forex trading and anyone can learn currency exchange for profit but it involves seeing through the myths and working smart and seeing the reality.
The reality is that you need a simple method you understand can have confidence in and can apply with discipline.
Forex trading is actually quite simple when you understand what you need to do but most traders fail to get past first base of getting a logical method and more fail at the nest hurdles which is having confidence and few ever have the discipline to follow their forex trading strategy to success.
If you want to win at forex trading keep in mind it's based upon applying a method with discipline for that you need confidence and if you don't have these traits you won't have discipline and end up falling prey to your emotions and losing
The Good News Is:
For those traders prepared to work smart and do their homework a life changing income can be had and anyone can do it - but its up to you.
If you understand the above you will realize that forex trading requires certain skills and you need to learn and apply them and they are not what most forex traders think they are.
Learn the above, digest it get a trading edge and then you can enjoy currency trading success.
by kelly Price
So you want to win at forex trading? Well here is one simple question you must answer correctly with no hesitation - if you can you could be a winner if not forget forex trading. Here is your question:
My trading edge (the reason I will win when 95% of traders lose) is then define it:
Now a trading edge is essential and it's something you MUST have, understand what and why it gives you an edge, so you have confidence in it, to lead you to success.
Trading edges come from within and their personal and their based upon this:
Understanding = Confidence = Discipline = Forex success
A TRADING EDGE IS NOT
- Following expert news stories - Day trading or scalping - Following a system from a vendor blindly - Buying low and selling high - Predicting price moves in advance - Believing markets move to a scientific theory - Believing forex trading is easy - The more knowledge you have the better - The more complicated your forex trading system the better
If you think any of the above will lead you to currency trading success - your wrong and need to continue your fore education. The above are common myths there are many more but the above are believed by the bulk of losers and their the majority 95%
Consider the figure 95% it's a lot!
So how do you win?
There are no secrets to forex trading and anyone can learn currency exchange for profit but it involves seeing through the myths and working smart and seeing the reality.
The reality is that you need a simple method you understand can have confidence in and can apply with discipline.
Forex trading is actually quite simple when you understand what you need to do but most traders fail to get past first base of getting a logical method and more fail at the nest hurdles which is having confidence and few ever have the discipline to follow their forex trading strategy to success.
If you want to win at forex trading keep in mind it's based upon applying a method with discipline for that you need confidence and if you don't have these traits you won't have discipline and end up falling prey to your emotions and losing
The Good News Is:
For those traders prepared to work smart and do their homework a life changing income can be had and anyone can do it - but its up to you.
If you understand the above you will realize that forex trading requires certain skills and you need to learn and apply them and they are not what most forex traders think they are.
Learn the above, digest it get a trading edge and then you can enjoy currency trading success.
Forex Scalping - A Guaranteed Way to Wipeout Your Equity Quickly
Equity Quickly, Forex Scalping
Forex Scalping - A Guaranteed Way to Wipeout Your Equity Quickly
by kelly Price
Forex scalping and day trading are more popular than ever but it's simply the best way to wipe out your equity quickly. Here we will give you the facts about forex scalping and why it is based on unsound logic which will see you lose.
First let me ask you a question:
There are millions of traders all around the world from banks to private traders, trading trillions of dollars all with different methods, motivations and diverse opinions.
How is it possible to tell what this huge diverse mass will do in a few hours?
Know the answer?
Well if you do you can make money at forex scalping - but it's obvious that you can't predict what this vast mass will do in a few hours but forex scalpers try. Here are some of the answers you get form vendors selling systems .
1. Support & Resistance is Valid In a Day and can be Traded
Fact: Its not - volatility is totally random, prices can and do go anywhere and support and resistance levels in daily time frames are not tradable.
2. Markets Move Scientifically
Fact: This is absolute rubbish! If there were a scientific theory that worked, everyone would know the market price in advance and their would be no market! Markets move because they are not certain and while human nature is constant it certainly is not logical and predictable with scientific accuracy.
Anyway, if anyone had found a theory that worked all the time they would be to busy making money to bother anyone else.
You will see lots of forex scalping courses on the net, all promising 50 ticks a day, regular incomes and the ability to predict prices in advance - It's a wonder anyone has to go to work! Buy one of these for $100 odd bucks, sit back and earn money for doing nothing - if only it were that easy.
If ever you see a day trading or forex scalping track record it's a simulation - simply look for this disclaimer or a similar one:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
So there you have it - a vendor can make up any track record he likes in hindsight and of course they do (they have the sense not to trade it themselves) and simply put the above disclaimer on it.
Naïve and greedy traders can't resist it like bees at a honey pot, later they get a sharp lesson in trading reality - a wipeout.
The way To Make Money in FOREX
Is to forget day trading and forex scalping and trade time frames where you can get the odds in your favor and that means forex swing trading or forex trend following. The former looks for trends of a few days to about a week and the latter for weeks or months. Which you choose is up to you but with both methods ,the data is long enough for you to calculate the odds and enjoy currency trading success which is more than can be said for forex scalping.
by kelly Price
Forex scalping and day trading are more popular than ever but it's simply the best way to wipe out your equity quickly. Here we will give you the facts about forex scalping and why it is based on unsound logic which will see you lose.
First let me ask you a question:
There are millions of traders all around the world from banks to private traders, trading trillions of dollars all with different methods, motivations and diverse opinions.
How is it possible to tell what this huge diverse mass will do in a few hours?
Know the answer?
Well if you do you can make money at forex scalping - but it's obvious that you can't predict what this vast mass will do in a few hours but forex scalpers try. Here are some of the answers you get form vendors selling systems .
1. Support & Resistance is Valid In a Day and can be Traded
Fact: Its not - volatility is totally random, prices can and do go anywhere and support and resistance levels in daily time frames are not tradable.
2. Markets Move Scientifically
Fact: This is absolute rubbish! If there were a scientific theory that worked, everyone would know the market price in advance and their would be no market! Markets move because they are not certain and while human nature is constant it certainly is not logical and predictable with scientific accuracy.
Anyway, if anyone had found a theory that worked all the time they would be to busy making money to bother anyone else.
You will see lots of forex scalping courses on the net, all promising 50 ticks a day, regular incomes and the ability to predict prices in advance - It's a wonder anyone has to go to work! Buy one of these for $100 odd bucks, sit back and earn money for doing nothing - if only it were that easy.
If ever you see a day trading or forex scalping track record it's a simulation - simply look for this disclaimer or a similar one:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
So there you have it - a vendor can make up any track record he likes in hindsight and of course they do (they have the sense not to trade it themselves) and simply put the above disclaimer on it.
Naïve and greedy traders can't resist it like bees at a honey pot, later they get a sharp lesson in trading reality - a wipeout.
The way To Make Money in FOREX
Is to forget day trading and forex scalping and trade time frames where you can get the odds in your favor and that means forex swing trading or forex trend following. The former looks for trends of a few days to about a week and the latter for weeks or months. Which you choose is up to you but with both methods ,the data is long enough for you to calculate the odds and enjoy currency trading success which is more than can be said for forex scalping.
Forex Currency Trading System - A Basic Guide
Sunday, March 8, 2009 Basic Guide, Forex Currency Trading System
Forex Currency Trading System - A Basic Guide
by Abhishek Agarwal
If you are about to start doing it yourself and get into foreign exchange, make sure you have the right system to succeed.
Making money is fairly easy if you get the timing right. The right currency trading system helps you get the right timing. By definition, a trading system is well known for its use to invest money so you can make more money. The Forex exchange to be precise is all about investing money for a different currency, to make money and profits.
Forex is dependent only on the success of the stock markets.Using a Forex trading system can give you many advantages
1) in which you could invest in your own currency rates,
2) your money can be changed to another currency, and
3) can invest with a foreign company right from your own country.
So that you know, a currency Forex system was initiated by world-renowned investors, multinational corporations, and worldwide currencies.
Currency exchange Forex online system may have the same results as in a currency offline Forex trading system. However in a trading system online, access is definitely faster and you can see trade changes faster than offline systems. Also, in an online system, you could invest, trade, move investments and withdraw money faster. In addition, systems currency swap Forex can build wealth to potential investors willing to learn about their investments and whom to trust as their brokers to have other decisions.
However, making up your mind on the kind of Forex system to trust can be a decisive factor for your company. Typically in the treatment of any type of investment, whatever you want to meet other traders have met at another time. Thus, when the currency Forex trading system agent cant be contacted in person, by telephone, e-mail or fax, it is possible that you are working with a false company. A society that currently uses Forex trading systems currencies and offers many opportunities for global investments should contact you at different times ofthe trade.
Also, having to invest and work with a currency system Forex company that puts your money first and listens to whatever you need is a good thing. However, if they call you with suggestions opposing your decisions at regular intervals, it can get irritating. So it is advised to avoid doing business with such a currency system Forex business. Always remember that to cope with any type of investment, you should understand that you need time to learn the ropes before you get in.
Sometimes, a currency trading system Forex agency will call and ask you for money, because it could help you get involved in the scene, and here you have to be careful. Any good agent will give you time to make decisions without pressure. So look for one you are comfortable with investing.
Lastly, when you are sure you have a good agent, you will be able to work relaxed and feel your money is secure.
by Abhishek Agarwal
If you are about to start doing it yourself and get into foreign exchange, make sure you have the right system to succeed.
Making money is fairly easy if you get the timing right. The right currency trading system helps you get the right timing. By definition, a trading system is well known for its use to invest money so you can make more money. The Forex exchange to be precise is all about investing money for a different currency, to make money and profits.
Forex is dependent only on the success of the stock markets.Using a Forex trading system can give you many advantages
1) in which you could invest in your own currency rates,
2) your money can be changed to another currency, and
3) can invest with a foreign company right from your own country.
So that you know, a currency Forex system was initiated by world-renowned investors, multinational corporations, and worldwide currencies.
Currency exchange Forex online system may have the same results as in a currency offline Forex trading system. However in a trading system online, access is definitely faster and you can see trade changes faster than offline systems. Also, in an online system, you could invest, trade, move investments and withdraw money faster. In addition, systems currency swap Forex can build wealth to potential investors willing to learn about their investments and whom to trust as their brokers to have other decisions.
However, making up your mind on the kind of Forex system to trust can be a decisive factor for your company. Typically in the treatment of any type of investment, whatever you want to meet other traders have met at another time. Thus, when the currency Forex trading system agent cant be contacted in person, by telephone, e-mail or fax, it is possible that you are working with a false company. A society that currently uses Forex trading systems currencies and offers many opportunities for global investments should contact you at different times ofthe trade.
Also, having to invest and work with a currency system Forex company that puts your money first and listens to whatever you need is a good thing. However, if they call you with suggestions opposing your decisions at regular intervals, it can get irritating. So it is advised to avoid doing business with such a currency system Forex business. Always remember that to cope with any type of investment, you should understand that you need time to learn the ropes before you get in.
Sometimes, a currency trading system Forex agency will call and ask you for money, because it could help you get involved in the scene, and here you have to be careful. Any good agent will give you time to make decisions without pressure. So look for one you are comfortable with investing.
Lastly, when you are sure you have a good agent, you will be able to work relaxed and feel your money is secure.
Forex Day Trading - The Most Important Fact You Need to Know
eliminate stress, Forex Currency Trading Online, Forex Day Trading, forex online trading, Forex Signals
Forex Day Trading - The Most Important Fact You Need to Know
by kelly Price
If you are considering forex day trading, there is one fact you need to know above all others and its enclosed in this article.
The fact is that if you try it the odds are you will lose your money and lose it quickly.
Why?
Because all volatility within such a short space as a day is random and support and resistance levels are meaningless and you will may as well flip a coin. Of course if you think about it its obvious why:
You have millions of traders trading trillions of dollars each day and this mass of people and what they do cannot be measured in such a short time span as a day or less.
You will see a lot of day trading systems on the net and they all claim to make money - but there is a problem - none of them do, because none of them have been traded.
They all produce a track record in hindsight knowing the closing prices!
Well that's hard - if we all knew tomorrows price today we would all be rich but forex trading is not that simple. Whenever you see a day trading or forex scalping system with a track record look at the disclaimer and you will normally see the one below or a similar one:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Of course if you put this disclaimer on you can say anything you like and many vendors do. They know the system wont make money (that's why they have the good sense to not trade it themselves) better to sell it and make a guaranteed income by appealing to naive and greedy investors.
Day trading is a good story but that's all it is and it doesn't work in practice. I quite like Harry Potter as a story but I don't think I can fly!
If you want to make money in forex trading understand one key point:
You need to use data that allows you to calculate the odds and that means swing trading or long term trend following - where the data can be used to help you time your trading signal and enjoy long term currency trading success.
If you want to day trade the odds are not on your side and you will lose and if you don't believe me try and find a day trading system with a track record audited of trades and profit and loss and you simply won't get one
by kelly Price
If you are considering forex day trading, there is one fact you need to know above all others and its enclosed in this article.
The fact is that if you try it the odds are you will lose your money and lose it quickly.
Why?
Because all volatility within such a short space as a day is random and support and resistance levels are meaningless and you will may as well flip a coin. Of course if you think about it its obvious why:
You have millions of traders trading trillions of dollars each day and this mass of people and what they do cannot be measured in such a short time span as a day or less.
You will see a lot of day trading systems on the net and they all claim to make money - but there is a problem - none of them do, because none of them have been traded.
They all produce a track record in hindsight knowing the closing prices!
Well that's hard - if we all knew tomorrows price today we would all be rich but forex trading is not that simple. Whenever you see a day trading or forex scalping system with a track record look at the disclaimer and you will normally see the one below or a similar one:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Of course if you put this disclaimer on you can say anything you like and many vendors do. They know the system wont make money (that's why they have the good sense to not trade it themselves) better to sell it and make a guaranteed income by appealing to naive and greedy investors.
Day trading is a good story but that's all it is and it doesn't work in practice. I quite like Harry Potter as a story but I don't think I can fly!
If you want to make money in forex trading understand one key point:
You need to use data that allows you to calculate the odds and that means swing trading or long term trend following - where the data can be used to help you time your trading signal and enjoy long term currency trading success.
If you want to day trade the odds are not on your side and you will lose and if you don't believe me try and find a day trading system with a track record audited of trades and profit and loss and you simply won't get one
Subscribe to:
Posts (Atom)
