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The 1st wrong belief of 97% traders of the world. Predators and preys at Forex.
None of the classic traders dedicated any chapters (or at least lines) to this problem. Nor did they explain the paradox that the books contain.
· All the authors persuade us that traders can earn money at Forex using their “secret” elements of technical analysis and money management … without even explaining where a trader’s incomes from.
· Millions of traders learn these “secret” methods (techniques) using them in everyday trading.
What do they have in the end?
· The techniques of market analysis make progress and become more complicated year in year out, but the amount of constantly losing traders stays the same - 97-99%.
· Scam dealing centers (brokers) invite entry-level traders to study the “secret” techniques of classic trading – books written by Murphy, Bill Williams, Elder, Shwager, Demark, Prechter, Nili, Dinapoli, Larry Williams, Sperandeo, Vozny, Naiman and the rest. Then they ask the traders to open a real trading account with them.
· The traders learn and apply these “trading secrets” to real trading …they build trend channels, draw (calculate ) Support and Resistance levels, draw Fibonacci grids, look at the intersection of moving averages and examine MACD and Stochastic data….yet they lose all the money to their brokers (dealing centers).
· The defeated traders learn new “secret” methods of forex trading….and they lose again and again.
Doesn’t it seem odd to you? A two-action sequence is regularity.
· 97% is a statistic result, statistics as a science. This is “an objective correlation between variables that afterwards can be applied to a new set of data”.
· In this chapter let’s take a closer look into the hidden algorithms of the 97% regularity showing that the success algorithm of the other 3% market participants is based on the opposite logic (that is applicable to both forex trading and life).
What questions the 97% forex losers don’t ask themselves.
· Can a secret still remain a secret if it is open to millions?
· What field of activity is suitable for making a million fortune by simply copying the method without understanding the inner structure of the algorithm (the outer form is copied, the inner structure is not understood)?
· Have you ever seen a bookmaker or a casino publishing and distributing books telling how anybody can easily won money from them every day? So what is the logic of Alpari dealing center that published an advertised a book by Dmitry Vozny or Forex Club that published V.Taran’s book in which he tells us about a simple illiterate elderly Russian woman who managed to influence the US dollar (the exact title “ Как баба Нюра опустила американский доллар”)?
· Why after many years of studying at universities and working as a specialist in some field, most people still do not get into the 3% of the best professionals? It concerns any profession. Yet many reasonable people hope to get into the 3% having finished 3-week or 3-month training courses with dealing centers.
· Who makes them believe in this? How and why do they do it?
According to Masterforex-V’s algorithm, to succeed in any business it’s vital:
· Discover the know-how based on the real algorithms of the market that have not been discovered before.
· Analyze the algorithms of both ups and downs of those who made that path before you and learn a lesson from this (without copying the form because copy is always worse than original).
Let’s closely examine what some classics refused to write and what the rest of the classics (judging by their “discoveries”) do not know themselves.
The essence of 97% traders’ wrong beliefs
· The Forex market is not the balance of supply-and-demand of currencies around the world as 97% traders believe. It is not even the technical and wave analysis of a currency-pair motion.
· Under MF, first of all Forex is a market of predators and preys. Through the lenses of this market type all the technical, fundamental and wave analysis is given. The bigger the deception of the traders the stronger the price motion following one of the 2 or 3 absolutely correct variants of technical and wave analysis that you should be able to see online.
· While dreaming of becoming a predator (alligator) a newbie-trader is seen by most brokers and dealing centers as a prey. Forex advertising campaigns that cost billions of dollars were launched not to find new Buffets and Soroses but to decoy new preys into dealing centers and broker companies and make them lose their deposits. Yet the preys lose the money to the very dealing centers or brokers which make huge profits on this.
· Is it possible to shift from a prey to a predator, a forex professional? How the specific knowledge can be valuable for profiting at Forex? This is what we are going to talk about in this chapter.
97% world traders’ wrong belief #1. Forex predators and preys. Masterforex-V’s algorithm of forex “predators” and “preys”, personality and “the crowd”.
Basic laws of nature and society.
1. Preys always outnumber predators
2. A predator should always know a prey’s behavior. A prey is far from studying its own behavior as a prey as well as the behavior of the predators around it.
3. The logic of predators’ behavior cannot be the same as preys’ one.
4. By understanding the algorithm of preys’ behavior you can shift from a prey to a predator (a personality). As Chekhov said : “….this man who, drop by drop, squeezes the slave's blood out of himself until he wakes one day to find the blood of a real human being--not a slave's--coursing through his veins”.
5. This knowledge will never be a part of any state university’s curriculum (The government needs preys as the vacancies of predators as heads of any state are always filled. That is why only life can teach you such a lesson).
6. Any exchange is an ideal model of the relationship between predators and their preys (professionals and amateurs). Through the description of the model you can look at Forex, yourself and at the surrounding world in a different way.
The difference criteria between a predator and a prey (a potential loser and a successful trader).
1. The attitude toward himself and others.
Hope for others and belief in them is a prey’s trait (the essence is to find subconsciously another guilty person because of disbelief in success from the first steps).
a) In society this trait is represented by the belief in a kind governor, king, president, director , mayor… who will make life better as soon as he comes to power. (Personally I am very sorry for the millions of retired people who realized that having given their health and their life to the state they no longer needed by it, that life comes to its end and it cannot be changed. Yet it was not their votes in the last elections that was their worst mistake but inability to understand the algorithm and the goals of politicians as well as their own goals when still young.
b) At Forex it is important for a potential prey:
· to hear the opinion of the “great” analysts about the Dollar (whether it will rise or not) instead of finding the algorithm of the dollar motion as well as the algorithm of the analyst who comments on it.
· to expect “the objective” as something inevitable and clear to any amateur , for example, the news-releases ( that are better /worse than it was forecast)
· to know if the fellow opened a position. (It is easier for a prey to be in the crowd, to feel as if he/she belongs to the crowd in which he/she doesn’t have to take the responsibility…even in misery).
· To buy an indicator in hope for the miracle…instead of understanding WHAT and WHEN this indicator indicates (if the prey looses he/she will blame the indicator or its developers but not himself/herself).
Unfortunately it is the way to the dead-end at Forex as well as in real life.
· Good analytic skills and self-confidence are any predator’s traits.
· A predator doesn’t consider a team to be a crowd. He/she clear understands the advantage of team hunting over single – handed hunting with a strict distribution of functions between the numerous (couple of hundreds) members of the team that handle a huge information flow, make calculations and gather all that into a single (united) algorithm. This work cannot be physically handled by a single person every day.
When it comes to analyzing one’s own mistakes (just personal analysis):
· A prey always blames circumstances (the news, “deception with the news”, the government, society, social system etc.)
· A predator blames only himself /herself (didn’t foreseen, didn’t consider the variant). As a result he/she learns a lesson (from the failure).
· Example 1. The term “lessons” is one of the favorite ones of V.I. Lenin (the lessons … of 1905, of October 1917, inside the party discussions, of the armed revolution, of the military communism etc.)
· Example 2. See the book by Curtis Faith called “Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders” http://dma.masterforex-v.org/ . Being taught the same way the minor part of the only “turtles” group achieved amazing results (reached the top in trading) while the rest left the market for ever.
· The logic of the losers’ behavior is quite interesting. Instead of getting the algorithm of their successful fellow-traders to learn a lesson for themselves and to reach the top of prosperity and glory, they left the market. Yet it was their teacher, Richard Dennis, who they put the blame on for their failures, saying that one part of the students got a better education than the others. They didn’t blame themselves.
· Example 3. To compare the education at MF Academy with the education of the legendary “turtles” see the Academy’s separate forum branch http://forum.masterforex-v.com/index.php?showtopic=10230
· The fear of circumstances is a prey’s trait
· The instinct of self-preservation is a trait of a predator’s personality. A predator knows the limit crossing which he/she can be turned into a prey (at Forex the limit is represented by a stop-loss or a lock).
· Dreams, fantasies and illusions are a prey’s traits. (A potential forex prey believes that the trend cannot go further … soon it will turn…the swaps are positive, maybe everything will change for the better).
· Realism, sensible cynicism, diligence and firmness of purpose are the traits of any predator (professional) who realizes that everything depends on himself/herself, everything around him/her can just help or prevent him/her from succeeding.
The line between confidence and overconfidence
· Overconfidence is a prey’s trait. (It is peculiar to those who do not understand the algorithms of the current successes and failures. This leads to 2 extremes – overconfidence because of the accidental successes and fear of the unexplainable chain of failures).
· Self confidence/self-reliance is typical of a predator’s personality.
· Any trader must understand he/she is not the main predator at Forex. The main predator is the one who simultaneously moves ALL the quotes in the world (abstract “market” or the consortium of the world’s biggest banks or …the name doesn’t really matter). Agree that the main predator has almost all the financial and economic power of the world.
· Any trader’s success is to find out the secret of the main predator (“the market”) and follow him to foresee his steps. That is what the Academy members do EVERY DAY). If you didn’t catch the plans of “the Boss of the Game” stay out of the market. A predator must be able to wait.
· That is the reason why a stop-loss / a lock plays a very important role. (It is the line, crossing which a first-time predator can become a prey).
· A prey doesn’t divide the society into predators and preys. He/she never considers himself/herself to be a prey.
· A predator cannot help dividing the society into predators and preys. He/she clearly realizes who is the prey and is the predator for him/her in any situation. His/her success depends on the understanding of the behavior algorithm of both predators and preys at a definite time in a specific place. Warren Buffett confirms this by saying that if you do not know who is losing his money at the market now then it is you who is losing it. The great predator gave a hint for understanding the “market” essence.
Masterforex –V’s conclusions:
· Technical and wave analysis are just tiny parts of any forex trader’s success.
· Change yourself if you want the world around you to change too.
· To change something in a correct and conscious way (for example, your forex trading) it is necessary to find out the algorithm of conscious understanding of how the SYSTEM works (functions), of its laws, rules, strong and weak points.
· According to MF, success is conscious perception of the enemy’s weak spots and the ability to concentrate the strike on them (from the art of war through marketing to forex trading).
· Any other way is a beaten path along which preys (the crowd) go. The crowd is considered by the predators only as a source of preys.
· The 97% statistics tells us that the “beaten path” was not made by chance (even though each prey chose this path went along it to the dead-end on his/her own)
To have a more detailed look at the algorithm of predators and preys visit the branch of Masterforex –V’s Academy http://forum.masterforex-v.com/index.php?showtopic=10154 where you can leave your comment (opinion) on the topic.
Exchange market as a place where predators and preys clash.
1. Any exchange market participant doesn’t produce anything and therefore he/she cannot profit from anything else except the loss of most traders.
· The incredible profits of the 3% of the world’s traders are equal to the loss of the rest 97% (minus broker’s commissions and other expenses).
· Forex traders have an advantage over the traders of other exchange markets (market of shares, market of indices etc.) as another source of profit can be added besides the above-mentioned one. It includes the profits from the loss on currency exchange expenses (spreads) of banks, investment funds and the world’s population that exchange euro for dollars, rubles…then exchange them back. As a rule they do it at the peak of rise and right before the turn.
2. At the market traders can be divided into predators and preys even more distinctly than in everyday life.
· Any market is a copy and a product of the world society that cannot be ruled by any other laws than the above-mentioned ones, which generate the market game.
· The genuine algorithms and laws of the society become the most vivid and true on the market because there is no “extra cost”. Yet the market doesn’t have the redistribution of the “extra cost” through the State’s benefits and grants that diminish and the difference between predators and preys.
· As a result, we can observe an ironic picture. The market is more frank than the most “democratic” states in the world. Instead of lie and flattery you will always know the truth about yourself whether you are a prey or a predator. (In any state a “prey” can be satisfied with the position of “middle class” and even be proud of it. At the market there is a clear division which is defined by the market: either you will get to the top or you will stay with the crowd at the bottom of the success pyramid.
The common features of Exchange and State history.
· The real history of any state is the science and the art of deceiving the citizens by the authorities. Any politician’s aim is to come to power gaining the access to the distribution of financial flows as well as to the personal well-being and to the might of his/her family, party, clan.
· In the countries of the former USSR, with embezzlement of state funds of 30-70% (under some independent experts and Chambers of Accounts), the extension of the difference between the rich and the poor as well as the economic failures of the authorities are inevitable (try to steal 70% of the profit from any enterprise and you will see what will come of it).
· In Western countries there no crying facts of corruption, stealing and money laundering like that because of many factors including the severe competition of mass media, which belong to the opposing parties. Yet the essence of the state and politicians is the same. Consequently, the aims of the politicians struggling for power are also the same. (Do you believe that THEIR politicians spend billions of dollars on electoral campaigns because of the noble aims of helping the state and each of its citizens? Since when do noble deeds need to be done publically under the photoflashes, only after coming to power? Is it really necessary to spend billions on PR campaigns instead of making charitable contributions? Then what do they need the power for?
· Presidents and prime ministers never say in public that the reasons of economic failures lie in their incompetence and corruption. They are constantly finding “objective reasons”: enemies within and without, the opposition, negligent performers, saying that the problems are only temporary, promising a better future for the people.
· Understanding the algorithm, a predator makes his/her own game in which his/her own interests are primary (business, career, children, family). He/she clearly understands that it is better to not get into the game of the “senior” predators and it is better to think about his/her own interests and coarse of life while understanding the algorithm used by the politicians and the crowd.
The proof of Forex law #1, Forex being the market of predators and preys.
· The proof is in the classic phrase: “the market is always right”. Few people thought about the meaning of the phrase, few of them analyzed both its algorithm and the consequences of its recommendations.
· The essence can be easily understood through the military slang algorithm: “The commander is always right. If he is not right, see rule #1”. (The commander of any military unit is a predator for his subordinates and simultaneously he is a prey to the senior officers).
The 1st practical recommendation based on the above-mentioned law.
1. The use of stop-losses /locks is obligatory.
2. The algorithm of placing stop-losses /locks will show the “strength” of your trading system.
3. If you don’t know where to place stop-losses/locks stop trading as you do not see :
· The line between the trend continuation an its turn on a specific timeframe that is SPECIFIED by the market.
· The line crossing which you will be professionally turned into a prey without even noticing it.
You have a chance to become a successful forex trader.
1. Be aware of the 1st market law (of the society, the state and the world being divided into predators and preys) before you start learning technical analysis in the next chapters of the book.
2. MF’s 1st market law is the thinking algorithm of the 3% percent of the world’s predators whose logic is the opposite to the logic of the rest 97% (Since MF Academy opening thousands have studied and are still studying here). Take my word for it:
· All the losers (irrespective of education, nationality, sex and age) are as like as peas not standing from the “crowd”.
· All the successful students are individual in their own way. Yet they have much in common , contradicting the majority.
Who are you? A potential forex prey or a would-be predator?
· You future losses and wins are formed before you even make your first deal.
· Read once again what is read in this chapter.
· If every cell of your body “belongs to a prey” and if you think like “the crowd” around you (neighbors, fellows, strangers, politicians and political scientists on TV (politicians say the opposite when in private)) you don’t have a ghost of a chance to achieve success at Forex as well as in life and getting into the 3% best professionals in any field.
· Think about a great depth of meaning in Chekhov’s words about the necessity to “drop by drop, squeeze the slave's blood out of” yourself. A slave is a classic prey. Why did the intelligent Chekhov compare himself to a slave cutting the phenomenon into pieces and making an algorithm to “drop by drop, squeeze the slave's blood out of himself ”?
· The success in any field of activity is based on finding the algorithm of what is going on. As a result, it is possible and it is necessary to follow the trend (in life, in trading) using the hidden- from-the-crowd-of-preys algorithm of movement.
3. Never follow “the crowd” neither at Forex nor in life.
· The crowd always consists of preys (the predators are politicians, oligarchs, heads of the banks, exchanges, corporations etc.)
· Never do anything until you clearly understand the predators’ “cheating-the-crowd” algorithm (as Buffet asks : “who is the current prey?”) otherwise you will lose.
Example/Test #1. The behavior comparison of potential “preys” and “predators” concerning the question of investing the personal savings in dollars, euros or in the national currency.
A prey does everything he/she is told by politicians and the mass media controlled by them.
For example, TV shows the 50%-200% profits of those who entrusted their money to Unit Investment Trusts (UITs) in 2007. The preys bring the money to UITs in 2008 and lose from 50% to 100% of their savings.
· It is very profitable to politicians when the population keep the money in national currency in the banks of this country (politicians always say only half of the truth…keeping savings in the national currency is really profitable to some parts of the national economics. Find the algorithm and only then deposit the money to your bank account). MF’s hint – Don’t even think about keeping the money in the national currency during the national bank crisis.
· What is the best currency to keep your savings in? Dollar or Euro? At the beginning of 2008 people all around the world were sure that the US economics would fall. The US dollar fell for several years in a row. People all over the world (for a number of reasons including the manipulation by the world’s mass media) brought their dollars to exchange them for euros at the rate of 1.55-1.6 (all over the world banks bought dollars).
· The question arises: who would become a prey? Would it be the world’s population or the world’s banking system and the world’s leading banks?
If the answer is obvious:
· Find the algorithm, using which banks simultaneously start the opposite process all over the world. Answer what info manipulation will precede this process.
· It is not the politicians’ words that you should believe in, it is their deeds ( when Chinese, Russian banks and the banks of other leading countries start to change the proportion of dollars and euros in their gold and foreign currency reserves you should do the same – change the dollar/euro ratio of your savings )
Note: It is Investment Department that studies the algorithms of long-term (a couple of years and more) trends at Masterforex-V Academy.
Example /Test #2. The behavior comparison of potential “preys” and “predator”. The instructor invites a graduate (who has just finished the trading courses with the dealing center) to have a heart-to-heart talk. With a kind voice he tells his former student about his (the former student’s) outstanding abilities (up to comparing him to Soros). He recommends to never give up trading at Forex. Yet, according to the instructor, he should definitely open a real account with them and try his hand at real trading.
· A prey believes…He/she is very pleased with the kindness, care, “comparison to Soros”, the instructor’s belief in his/her abilities.
· A predator analyses everything. He/she never places his/her faith in anybody or anything.
· What benefit will the instructor get from it? Can he be trusted? The only thing he can do is to repeat the words of Soros, Williams and others instead of finding out their algorithms of analysis, their mistakes and unsolved problems.
· “Why did the instructor invite other graduates to have a heart-to-heart talk?” Then “the predator” will ask them what were they talking about? “Oh, did he compare you to Soros…? I see…”
· Then he/she will think whether this dealing center has enough money to settle accounts with 4 or 5 Soroses?
· Yet he/she is not going to find the solution in going to another dealing center. He/she will find the solution in understanding why he/she (being a forex newbie) is such a welcome client for the dealing center or the bank.
Example /Test #3. The behavior comparison of potential “preys” and “predators” when he/she gets a spam e-mail telling about incredible profits
· UIF’s financial report (statement) about paying 200% interest per year in 2007 with a bank seal (or the seal of a public accounting firm) which confirms the UIF’s profit, followed by numerous interviews with the excited investors who confirm getting the profit.
· Statement of some successful trader who earned 800-1000 pips for the last month followed by the offer to sign up for his training course.
· Statement of another successful trader who earned 2000% for the last year followed by the offer to invest money.
PR preys believe
· The facts are enough for him/her to believe (these facts or some additional ones that the scammers have in reserve, having intimate knowledge of a prey’s psychology).
· The preys calculate the profit (1000$ multiplied by 2000% will give us 800.000$ in 3 years)
· The preys’ common sense tells them that there is no need in calculating the geometric progression for a period that exceeds 2 -3 years as they may need to withdraw the invested money together with the profit within 1-1,5 years.
The questions are: how much will the prey profit and when will he/she understand everything?
a. Situation analysis
· Why would a successful trader, who earned a couple of hundreds for the last year and whose annual profit interest is 2000%, need to borrow 5-thousand (10-thousand) sums from numerous investors, keep the books and make constant statements and reports for the investors?
· Can a dealing center open a “fake” trading account just to attract investments if they have access to the server and the software? (MF’s hint – yes, they can)
· Will the dealing center (DC) be responsible if their “successful trader” loses hundreds of millions borrowed from investors leaving all the lost money with the DC (MF’s hint – no, the DC won’t be responsible for it).
b. Trading system analysis
· Analyze the deals of the “successful trader”.
· Find out the algorithm (believe me, most “successful traders” whose trading statements I was given by their investors, are scammers). Yet most winners of trading contests (arranged by DCs) with big money prizes are “figureheads”.
· If you see the algorithm apply it to your trading (one should never trust either money or beloved woman to anybody no matter how trusted he seems to be).
Having understood Masterforex-V’s philosophy and using the hidden algorithm you will always see the life as a predator sees it, not a prey.
Trading with the help of advantages or Masterforex-V’s practical recommendations for future “predators”.
How a prey can be turned into a predator.
Clearly understand that you were invited to the market as a prey by subway , TV and internet ads (I believe they didn’t mean to invite Soros or Buffet. Does your DC have the money to settle accounts at once with 3 to 5 guys like Soros or Buffet? Ask the courses instructors).
You can become a predator and earn unlimited sums a day at the world’s richest market with daily turnover of over 3 trillion dollars…if you become a professional and enter the 3% of the world’s best specialists.
What is necessary to enter the 3%
Now you’ll get the answer to the question raised in MF’s introductory lecture (preschool education) http://www.masterforex-v.com/school_trader/basics_stock_trading.html (the question was : why didn’t you enter the 3% of the best professionals in the former specialty and do you have a chance to be successful at Forex?).
To enter the 3% it is necessary:
1. To discover the know-how, not copying trading “secrets” open to the whole world and copied by many including the outright “scam” DCs and brokers for forex newbies - their “potential preys”.
2. To gain some experience and become a professional i.e. to learn through practice to use the know-how profiting from the advantages that you possess. At the closed part of the Academy there over 100 MF’s world discoveries with daily practice and hints during current trading sessions.
3. The constant honing of your professional skills
· The vacancies of the 3% best traders are constantly changing under the impact of many factors including the complication and alteration of specific elements of “the market”.
· Before opening a real trading account think about the next questions: Do you already have the skills to understand the market better than Soros, Buffet, Bill Williams, Demark, Elder, Nili, Dinapoli, Prechter etc.? Have you found the algorithms of their trading systems? Have you studied their mistakes and strong points as well as the riddles they didn’t manage to solve? Can you use the advantages in real trading to make a profit? If the answer is no, then why did you think that you will enter the 3%, not them?
· I want to remind you that none of the preys thinks over the above-mentioned questions before opening a real trading account.
· Masterforex-V Internet Academy contains Higher School Department to study the algorithms of classic trading. It boasts tens of special courses on classic traders’ books with an unbiased analysis of the algorithms of their discoveries, unsolved riddles, mistakes that are corrected through Masterforex-V’s trading system.
It is also necessary to see a clear line between professionals and amateurs.
· Professional teach algorithms
· Amateurs teach ready-made recipes and conclusions trying to copy the result without success as they do not understand the essence of the inner algorithms.
· Never take anybody’s word for it. At our Academy it is strictly forbidden to make predictions without giving the algorithm of the applied tools and calculations based on the tools.
· Learn to see the essence of the phenomenon through the lenses of the algorithms hidden from “the crowd”
· Do not try to step over the levels of professional skill.
· Recall how young and inexperienced predators are taught… how you were taught at school, at university and at work. Why will young and unskilled lieutenant that has just finished some military college never be allowed at once to command a battalion, a regiment, a brigade or a division?
· Forex is not ever going to escape from you. It will exist in a week, in a month, in a year.
If you fail to trade (with) 0.1 lot you will fail to trade (with) 1-2 or 20 lots.
a. The reason is not how much money you deposited to your trading account.
· It is your understanding of technical analysis and trading that makes you fail.
· It is also the violation of money management rules that is one of the reasons why you fail.
· And of course, it is the stress that you feel while shifting rapidly from small treading lots to big ones. It also makes you a failed trader.
b. I address those who want to break this law and jump over the abyss between their current financial state they are not satisfied with and the state they want to achieve through borrowing huge sums from private investors and banks. Just imagine the letters of those who borrowed millions of dollars and lost them (there were over 20 letters from such people among hundreds of thousands of letters sent to me after the appearance of book 1).
Think about the next questions:
· What were the words of a man who had hung himself but had been miraculously saved by his wife and daughter?
· What were the feelings of a man, who had survived after cutting his veins … waiting for another talk with his investors?
· What did some loser’s wife write? (She attached a photo of a happy family with their mansion, flourishing garden and two expensive cars at the background. It was made 2 years ago when he took 2 million dollars from investors and lost a small part of it with some Russian “scam” DC. The rest of the sum he lost with world-famous Forex broker (the argument was “they are not scammers”).
Criteria for opening a real trading account used by the students of Masterforex-V Academy.
1. Understanding each move of the price of any currency pair on all the timeframes from m1 to d1 and w1 and consciously making a profit through this understanding.
2. Experience. You should follow unmistakably several mid-term (H4 timeframe) trend turns and consciously make a profit from each of the trends.
3. Follow money management rules of (roughly, if you deposited 1000 dollars the maximal lot is 0.1, if you have a 5000 dollars the maximal lot is 0.5)
4. There should be a gradual psychological shift while changing the size of trading lots. Change the lots gradually from 0.1 to 0.2…0.3…0.5…1…2…etc. At the Academy we have a special department called Statistics and Money Management Department. The members of SMMD study money management (MM) as a science (classic algorithms and their optimization for flats and trends on various timeframes) http://forum.masterforex-v.com/index.php?showforum=123
The market orders of Oanda “preys” as one of the elements of Masterforex-V’s Synthesis of Binary Patterns.
The market orders of Oanda “preys” for predators’ analysis
Pay attention to where the members the “crowd” place their buy limit orders at down-trends and sell limit orders at up-trends (at the same levels).
· I want to remind you that preys’ behavior is predictable (each trader is an individuality… yet all preys have the identical level of thinking thus constituting a “crowd” that can be easily manipulated at a distance).
· Those, who control Forex, always take into account the above-mentioned levels when changing the price rate.
· At MF-V Academy these calculations are also made as a part of MF-V’s synthesis of binary patterns (SBP). (The author leads a separate forum topic).
· IF the “prey” levels are crossed, under MF it is a strong signal as the price should reach the stop-loss levels of “prey” orders.
· If Forex wasn’t a controlled market (an interbank market for exchanging currencies, as all analytics want to present it) nobody would ever pay any attention to the “prey” orders (most of which are never placed at the real interbank Forex market).
An example. 4-5.08.2008.
A lot of buy-limit orders of “Oanda preys” were crossed at 1.9600 and 1.9500 (see the above picture with calculations). This caused a strongest down-trend.
Masterforex-V’s Synthesis of Binary Patterns (SBP).
· A separate chapter is dedicated to the explanation of this principally new method of market analysis.
· The essence is in complex analysis of the market by synthesizing tens of tools (new tools developed by MF as well as corrected old, classic tools of technical and wave analysis) that coincide “by chance” and “open” the plans of the Forex “Boss” according to one of the 2-3 absolutely correct variants of the future Forex movements.
As a would-be professional :
· You should have hundreds of such advantages available for trading.
· You should be able to synthesize (blend) them to not “follow the market” like the crowd, as Elder teaches. (Under Masterforex-V, the crowd is taught the same way all over world).
· You should “follow the market” together with the Major predator (Boss predator, Bank syndicate… the name doesn’t really matter) using the algorithm hidden from the crowd. You should use his logic, not the crowd’s one.
Applying MF’s algorithms to Forex. Masterforex-V’s new technical analysis of trading.
It is the above-mentioned principles that MF-V’s new technical analysis of trading is based on.
The essence of the new analysis and its difference from the old, classic one lies in:
· Shift from “chartism”, when any movement is unpredictable online…yet it is very logical and correct when applied to historical data of the chart. (Read in detail about the “chartism” of Murphy, Elder, Shwager, Luka, Williams, Hartley, Sperandeo, Naiman, Prechter, Fisher etc. http://www.masterforex-v.com/mf_books/book2/section2/chapter3.html )
· Shift to the real detection of the role of every movement from m1 to w1 and MN and their synthesis online using MF’s algorithms.
In the following chapters of MF’s books 1, 2, 3 we are going to proceed step by step along the path different from the path of most forex classics.
· We are going to discover the hidden algorithm that will let us see what is going on at the market… (sometimes the real market situation is absolutely paradoxical and contradicts the traditional ideas and views of classic trading).
· MF-V’s new technical analysis of trading is the basis of practical guidance for forex trading including the correction of numerous mistakes of classic trading. As a result of it, MF made more than 100 world discoveries in the field of trading.
The logic of Masterforex-V’s book #1 http://www.masterforex-v.com/mf_books/book1.html
· Who gives the same Forex price rates to the traders all around the world? The founder of Forex game. If you know the algorithms, weak and strong points of the synchronism of Forex, it rates can help you to become a successful trader.
· Why does fundamental analysis not work for short-term and mid-term trends? Look at a new algorithm of using fundamental analysis through the lenses of Masterforex-V Trading System (Masterforex-V’s trading system).
· Classic books on Forex. Look at classics’ world discoveries, unsolved problems, mistakes and MF’s algorithms of their correction through the lenses of MF’s new technical analysis.
· Forex training courses. Aims, hidden educational algorithms… yet 99,9% graduates lose after finishing the courses.
· The place and the role of a trading system for successful forex trading. How can a beginner tell a working trading system from a fake in 5 minutes?
· Brokers and DCs. New criteria for traders to chose a broker/DC.
· The balance (correlation) of binary elements and fuzzy logic at Forex as well as in MF-V Trading System. The synthesis of binary patterns of MF’s new tools. Classic trading analysis.
· Elder’s triple screen trading system –VS– MF’s “8-screen” trend classification: what is more precise and easy- to-use?
· “Air bag”: why it is not advisable and unprofitable to use stop-loss? What “air bag” can be used instead?
· Forex traders’ psychological barriers: Classic and new ways (MF’s algorithms) of overcoming these barriers.
· Forex-related websites. Useful, useless and harmful resources for forex traders: algorithms, regularities and peculiarities.
The next chapter is called The 2nd wrong belief of 97% traders of the world. Who gives Forex price rates to traders all over the world? The Founder of Forex Game. Algorithms, weak and strong points of the Forex price rate synchronism as a precondition of successful forex trading.
· We will talk about the necessity of understanding the algorithm for any forex predator
· The question “WHO gives the Forex price rates?” will be studied.
· We will derive the algorithms of weak and strong points that synchronism of Forex rates has (drawbacks become advantages when you understand their algorithm).
· We will define those advantages of traders that were never stated by forex classics.
· I will explain how these advantages are used daily in the educational process of our Academy.
This chapter can be discussed at our forum of Masterforex-V Academy http://forum.masterforex-v.com/index.php?showtopic=15088&st=0#entry515398
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Risk WarningBefore deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. More over, the leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses. To manage exposure, employ risk-reducing strategies such as 'stop-loss' or 'limit' orders. Placing Contingent Orders (stop loss, limit, etc) may not limit your losses to the intended amounts”