In the Lien and Schlossberg book "Millionaire Traders:How Everyday People are beating Wall Street at their own game", the authors interviewed an interesting trader (Hoosain Harneker) from South Africa that found success in the plan of taking 10 pips per day...consistently. At first the small size seemed inconsequential and didn't belong in the book, but the more I thought about it the consistency accomplishment struck me as certainly far more valuable from the perspective of the long term. Certainly if your system is consistent, to add size is pretty trivial. So I believe now...but how do we go forward? With all the algorithmic trading and dealing desk shennaigans out there, successful short term scalping in forex or currency futures isn't a trivial process at all with well capitalized traders/programs running likely stop locations and painting the chart with trades that build beautiful trend lines. What types of systems would you suggest would be appropriate to use to attack this particular situation and why? T200
I wouldn't. Forex is a racket and scam and it's nonsense like this that feeds the brokers (the only winners in the game) their next meal. Play in a regulated market and forget shit like this.
Yikes! I trade forex daily and use both daily pivots and fibonacci. I use them because so many do but I place my orders either above or below the pivot or S/R lines because they often whipsaw around the pivots. I go for more than 10 pips a day so I cant tell you what this person does, also I use fib retracements for good entrances.
Lien and Schlossberg are nothing more than FXCM marketing machines. All their books, seminars, trade shows, and blogs all feed FXCM. I did skim Kathy's 1st book, and it is worthwhile reading for the total Fx newbie. surdo
Forex isnt a scam. The problem why people loose alot is because brokers market to new traders with no experience. With 100:1 leverage with no trading experience = loosing all your cash . Forex is not a good to learn on .Its best to start with stocks move to futures then forex. I started in forex from the begining and lost alot. 4 years later making consistent profits when i dont get greedy .
I definitely would not start with futures or forex, however I migrated to them after being bored w/ stocks and long options (too many factors change price) Forex is definately not a scam-I read it will be regulated in 2009, I also trade currency futures which are regulated. Also certain currencies pairs: euroyen for example, can be inverted and then move in the same pattern as the yen future.
Every day winning may be a scam, but if you trade at least 4 pairs and let profits run. Overall you will do better than 10 a day at the end of the year.