Forex Secrets – Delusion No 2 – Who Prompts Forex Quotation to Traders

The delusion conceptually propounds that traders operate at a spontaneous FOREX market (as stipulated by B. Williams, A. Elder, E. Nayman, etc. ). But it is not the case. Traders do their job inside a well-organized and controlled currency exchange market, governed by the Consortium of the world’s largest banks.

Hence, who is pushing the currencies up and down, who defines trends, corrective actions and flats?

And, who, ultimately, places a trend at a point, where the majority of traders are happy to think they have saddled the wave and are about to win an enormous profit! Now! Not to be scared! Not to close the position! Not to be satisfied with a minor profit! Later on we will discuss that sort of stupidity. Thus, one persists to continue long in spite of more and more degrading profit. Shortly, the loss starts growing with light velocity! Are you familiar with the situation?

Well, who has reversed the rate?

And who generally tugs currency rates?

Tugging is surely centralized. Compare on-line quotes of several Dealers or banks to find out that they are per second coincident. Do each bank’s traders act in such synchronism, that even not seeing each other, they place identical orders so that quotation is in 100% agreement? NOTHING IS A MIRACLE HERE!

But prior to further explanation, we will listen to Bill Williams, the FOREX scholar (Trading Chaos, Ch. 6): “…let us trace a trend formation process. Earlier, the market and the market trading venue did constitute a single physical space. Majority of large grain traders were concentrated on the “floor”. Their orders involved amounts, sufficient to move the market; they enjoyed better control over the market than at present. During the latest 20 years markets have grown worldwide. Now, not only “Purina Ralstone”, “Kellog” and other prominent commercial associations seek hedging their cash assets transactions. So do millions of the world’s minor profiteers and farmers, competing with them in anticipation of perspective grain price fluctuations? This fact also implies strong potential for traders with nowadays, trends not being constructed on the floor. The latter mainly ensures the market liquidity by way of tackling “outer orders”.

The fact, that today’s trends are formed rather “outside the floor” than “on the floor”, as before, enables one to trace further market tendencies with trade volume being the key thereto. Our only on-line information is restricted to tick volume, time and price. Tick volume constitutes a number of price changes per a certain time period. It is not at all a number of traded contracts. Multiple researches revealed no significant difference between actual and tick volume. Using a tick volume, we may suppose, that it represents actual volume. It is a real-time volume, thus being our key to what’s going on in “trading pits”.

Two basic elements are organic to FOREX trading: brokers on the floor and remote traders. Local brokers constitute staff, executing orders, thus earning their salaries and/or commissions. They don’t possess money to be at their disposal. They are order executors. Their prospects are not burdened by prices, they getting for the orders management.

Remote traders use their own money. They have to pay the price out of their own pockets, unless they are getting a good one. Traders have to be much superior in skill to brokers since they independently take their own decisions, while the broker’s job is to follow the others’ orders.

Remote traders are supposed to support the market by way of taking its opposite side. As a rule, they are not at all crazy about any long-term transactions. Quite a few remote traders have been participants to our private training programs, and it is to be admitted that a 10-minute long transaction may seem quite a long-term one for some of them.

Think back to the fact that trends are built up of orders, delivered to the floor from outside, but not of long-term positions entered by remote traders. Since the traders’ job is to take the side opposite to the orders arriving from outside, they have no prospects of trading in between themselves. They follow your money. We are emphasizing again, that tick volume is our key to understanding what’s going on in the Forex Market. Remote traders do not contribute any significant volume to trading, which might result from dealing with similar traders on the floor. Trends emerge from incoming orders. That is why we are to be certain about when and in what amount the outer order is supplied to the floor. It is presented via a tick volume change”.

So, we, traders, turn out to be price locomotives, don’t we? And brokers on the floor just allocate and execute order, incoming from us, don’t they? And on April, 1, 2005 they all (meaning: we all) together decided to swivel the trend and to stay short against all the rules, news and common sense… I wonder if the scholar ashamed or not?

As regards the above quotation, I have chanced to hear a single argument in favor of Bill Williams (I guess you understood for what sake I’ve cited it in detail): it all pertains to the futures markets; we neither read nor use the above at Forex. Strange enough, these are the arguments of Williams’s advocates, but not of Williams himself.

This book is actually intended for both: futures markets and Forex Market. That’s why pictures taken from both the markets are so mixed up and the author never differentiates between the Technical Analysis methods thereof. Thus, either the author does not trace any difference between the two markets, or he is not eager to reveal it to the reader.

And neither in the foreword, nor in the remarks did Williams and his publishers refer to the fact that something of “Trading Chaos” is inapplicable to FOREX, and thus should not be made use of by a trader at FOREX.

I have repeatedly come through this peculiarity of Williams (correct specific case method definition being extended to a wider coordinates scale) and it actually induced me to write this book. In all and all, the methods and advice, absolutely true and correct for a PART of Forex Market are claimed by Williams to be universal for the WHOLE of Forex Market without being demonstrated where the above is effective and where it isn’t.

The same is being done by Williams’s opponents and advocates, who visualize the portion of Forex where his methods are operable only. As different from analysts and Williams’s bibliographers, TRADERS require much stronger to realize a demarcation with pro-Williams trading to the one side thereof and with counter-Williams trading to the other one.

Logically there comes a question: what might be added to Williams’s indicators in order to turn them effective at the point where they are presently ineffective (see details in chapter on the Williams Alligator).

And now we are getting back to the issue of who supplies traders with FOREX rates quotation, bearing in mind that it’s us, traders, who exercise rates movement in accordance with Williams’s standpoint. Millions of traders have actually been studying FOREX by virtue of the “Trading House” and it is really worth studying. This is one of the most interesting and instructive editions whose repeated reading each time brings about something new and useful.

However, in some passages it smells being custom tailored. Is Williams ignorant of the fact that there is no single FOREX exchange and there’s no single trading venue or floor? And that Pacific, Asian, European and American session classification is arbitrary?

Did You see currency rates move, while there’s a day off in the USA with the banks closed? So did I. So, who has made up his mind in the USA to trade on the floor on a day off?

Then, who prompts rates, who formulates trends and turns them with no objective reason for the rate to swivel and to rush in a direction, not being requisite at all?

Here is the answer, as provided by No. 11, 2002 “FOREX Profiteer” magazine’s article by Nadezhda Larina “Electronic Broker Systems at FOREX market”, http://www. ifin. ru/publications/read/351. stm), reading: ”… an FOREX dealing “Electronic Broking Service (EBS)” enjoys wide popularity with the extra-exchange inter-bank FOREX market. It has been developed by the Consortium of largest FOREX trading participant banks in association with “Quotron” informatics expert company and launched in 1993. Presently EBS incorporates 13 world’s largest market-maker banks, viz,: BN AMRO Bank, Bank of America, Barclays Capital, Citibank, Commerzbank, Credit Suisse First Boston, HSBC Bank PLC, J. P. Morgan Chase and Co. Lehman Brothers, Royal Bank of Scotland, S-E Banken, UBS AG along with Japanese Minex Corp. , established by a Consortium of Japanese Banks in a joint manner with KDD Japanese telecommunications company and Dow Jones Telerate.

EBS offers a completely integrated range of dealing services for the professional inter-bank market, being a leading anonymous inter-bank FOREX trading electronic dealer. It is currently used by over 2500 dealers in 850 world banks and yields a trade turnover of about USD80 billion daily.

See there also: “Three greatest FOREX dealers – Citibank, J. P. Morgan Chase and Deutsche Bank, together with Reuters Group PLC) have started Atriax system in June, 2001. The latter terminated the operations in spring, 2002 after having failed to stand the competition.

Can you imagine a monster machine, capable of forcing three world’s largest banks – Citibank, J. P. Morgan Chase and Deutsche Bank to abandon their business plans! Or capable of reversing the EURUSD from 1. 3660 to 1. 1865 and thus instantaneously executing orders of all the world’s traders, going and standing short! And thus within, April-June, 2005, buying the EUR from traders at USD1. 36, 1. 29, 1. 20, 1. 19, etc.

Do you see the loss? Watching the EUR slip 1700 pts after having bought it at 1. 36… But, possibly, there is no loss at all?

All of Larina’s basic provisions have actually found confirmation 2 years later in the UK “Financial Times” article by Jennifer Hughes: “A PC occupying trading floor” (see it on Financial Times 2004).

It underlines that during the precedent 2 years the Consortiums turnover has grown by extra daily USD20 billion thus currently stretching to USD100 billion, whereas the most prominent internet-based trading platforms ensure the average of USD15-20 billion daily turnover.

So, let’s jump to some conclusions:

1. The FOREX market is not the same as it used to be earlier, say 11 years ago.

2. There is in fact “a price fluctuation relative uniformity”, otherwise, practical quotations similarity with all the world’s brokers and traders.

3. The reason for the above uniformity has been honestly disclosed from technological standpoint, being the “flourish of electronic exchange technologies”.

4. There is no mention of other reasons for similar rates at absolutely different FOREX trading platforms the world over what links together the above platform and FOREX rates at them from financial, organizational, contractual viewpoints, etc).

5. The great interest is the remark from “Financial Times” reiterating the changes at FOREX during the latest years as narrated by an anonymous ex-dealer (?) who compares the FOREX market as of those 11 years ago: “It used to be a hell noisy and a hell splendid!”

In his opinion the market has lost a significant portion of its individuality with rise of technology. A very interesting phrase: “It used to be a hell splendid”. I would add:” It used to be a hell volatile”, with reference to the fact that the daily rates travel went as far 400 to 500 pips. And there’s nothing of the kind now.

6. Now, why has “The Financial Times” only interviewed the EBS Consortium official?

J. Jeffrey and the currency transactions department director, Fabian Shey Why wasn’t it desirous to interview the Reuters representatives (UK)? What’s the reason for such kind of disrespect to the compatriots?

Or were they hard to be contacted in London, where The Financial Times and Reuters HQs are located, moreover after maintaining that presently both, EBS Consortium and Reuters are dominant at the inter-bank market? Or The Financial Times possesses enough information on compatriots from Reuters to hold that the EBS Consortium official’s interview is sufficient without any Reuters?

7. Please, pay attention to the following from The Financial Times: “Anyway, other opinions are available. According to Justin Trenner, the current volume of on-line trading is turnover amounts to USD100 billion daily with the steep growth observed”. The Financial Times thus turns out to recognize its complete inability to trace not only FOREX cash flows, but even the trading volumes at those platforms.

The principal difference between stocks and FOREX is, by the way, readily apparent from the above. Those, writing about similar Fundamental and Technical Analysis methods for both the markets, are either ignorant as to fundamental difference of these markets, or they are deliberately swindling millions of traders.

When pointing out, that, besides the above Banks Consortium, there exist other electronic dealing facilities (e. g. Electronic Broker Service, Reuters Dealing 2000-2, etc. ), N. Larina has overlooked their interrelations aspect. And there are a lot of questions: how and why there is coincidence of trends, corrections, historical highs and lows in the course of a single day, etc.

And what is the way to reconcile the statement on shunt operation of EBS and Reuters Dealing facilities with the information that Citibank, J. P. Morgan Chase and Deutsche Bank together with Reuters Group Plc have failed to stand the competition? Is it attributable to the fact that the Consortium has actually acquired Reuters, maintaining its formal sovereignty in order to support traders’ opinion that FOREX market is free and independent? If affirmative, then it’s fairly clear why the Consortium was not scared to buy the EUR on its dip from 1. 36 to 1. 1860, since there nothing to be afraid of with one’s knowledge of the point, below which one will not drop the rate as well as the point to stage the EUR rally to in several months with no one to interfere with Your so doing.

Hopefully, it’s now understandable who swivels trends at FOREX! The world’s largest banks Consortium does have power to reverse rates, whenever desirous, overthrowing fundamental laws, news releases, trends and common sense, just the way we witnessed on 01. 04. 2005 charts. But it’s not at all, traders, as claimed by Williams.

That’s why there is obvious ineffectiveness of the Williams’s Market Facilitation Index (MFI) based on fluctuations of traded volumes; to be more precise, sometimes the indicator tells the truth, whereas sometimes it lies in a barefaced manner.

The reasons are stated above: the banks Consortium pushes rates to where it needs, but not to where traders going into deals, thus accumulating the volumes, indicated on the screen. That’s why traders turn losers when making use of the Williams’s MFI indicator.

Full text of this article and pictures of examples http://www. masterforex-v. su/

Forex Trading Secrets Exposed – 3 Lessons From Professional Forex Traders on Forex Trading

Almost 90% of the part time traders that I know of want to become full time forex traders in the near future. And they hope to be professional traders one day. That is the dream for most forex traders. What about you? In order to survive in the forex trading world and make lots of money from the forex market consistently, being a normal forex trader is not good enough – you’ll need to become a professional forex trader. So just what are the secrets that professional forex traders have that enable them to make lots of money trading forex? I once had a conversation with a friend of mine, who is a professional trader. He shared with me the 3 secrets that make professional traders like him very rich: Secret #1 – Professional traders are not geniuses- they simply follow a simple forex trading system You see it correctly, they are not any smarter than you nor do they possess of any god-like foresight in forex trading. I dare to say this because I know some professional forex traders who seem to know nothing in this world and clumsy in doing other stuffs but can do extremely well in forex trading. Why is that so? It’s simply because they have a successful forex trading system which gives them good forex trading signals. It helps them trade consistently. What they have to do is to repeat the consistency just by following the trading system. That’s about all. And let me tell you a little more secret, professional traders use simple forex trading systems instead complicated, as what most people thought. Secret #2 – Learn to work smart, not hard Do you think that you should learn how to trade forex the hard way and gain all the knowledge before you can be successful? Do you think you can master the forex market if you combine all the strategies taught by every forex trading experts? If your answer is yes, you are wrong. In other businesses, you may get rewarded for all the efforts and time you have put into. But in forex trading, it’s the right forex trading tutorials and education that count and you are rewarded for being accurate and not so much for the effort you put in. You will be surprised to know that successful traders only follow a winning trading system blindly to build up their trading capital. Secret #3 – They possess determination, discipline, money management and mindset for success My professional forex trader friend once told me that he would leave everything aside just to concentrate on his forex trading. It’s his determination to succeed that made him overcome small losses and steep learning curves that he experienced in the beginning. He told me the problem with most traders is that they are too eager to trade and make money fast from the forex market. You need to have discipline to follow the rules of your forex trading system. Huge capital gains in forex are piled up over years and not days, there is no shortcut to riches. He manages his money so well that even 2 or 3 losses in a row will not affect his trading capital much. 1% or even 0. 5% of his capital margin per trade is what he is only willing to risk. Not everyone can be a professional trader in a short period of time as you need huge capital, but anyone can become successful in forex trading if you learn how to trade forex the professional way.

With Automated Forex Trading System Software, Part time forex traders and newbie’s can save lot of time and money

There are many tools available to the FOREX trader for analyzing the market as well as for buying and selling currencies.   Software tools are a necessary part of FOREX because of its volume and volatility.   Software can be used to automate some of the trading procedures and safeguard against losses.

In order to make rational, successful trades, the FOREX trader needs information – lots of information.   Current exchange rates are the tip of the iceberg – the trader needs historical data as well as current information about political and economic conditions that could affect currency prices.   All this information is provided by many FOREX brokers on their web sites.

Successful FOREX trading relies on making accurate assessments of current political and economic conditions.   Being able to predict whether a currency will fall or rise against another currency allows the FOREX trader to profit from currency movements.

There are two basic trading methods for buying and selling currencies.

1. Reactive trading means the trader responds to changes in the political or economic climate.

2. Speculative trading means the trader makes buying decisions based on predictions on how the market will respond to current events.

While most FOREX trading is speculative, both types of trade require up-to-the-minute information and an analysis of current and historical conditions.

Traders rely on both fundamental and technical analyses.   Fundamental analysis is based on news information about political conditions, economic policies, trade patterns, interest rates and unemployment rates.   Technical analysis relies on historical charting to identify trends and patterns over time.   Information needed for both types of analyses is available in real time on the Internet.   Most online brokers offer live news feeds and streaming rates for observing minute by minute changes in the market.

All this information can help you decide which currencies to buy.   More tools are available to help you minimize your risk and maximize your profits.

Most of the tools that are available to you in the market are like PIP calculators, Pivot point calculators, etc. But however all these tools are used to make technical analyses to predict the upcoming trends in the market.

Now a days, all these tools will be available with the forex brokers with whom you are dealing. The forex brokers also provide the demo versions on how to use them. But whatever the tools are, all the tools that are provided are used to make the technical analyses.

Knowing about all the tools and their usage is good, but you alone as a forex trader needs a lot of time to make technical analyses using all those tools. For this reason, the forex brokers and other big forex expert organizations work with all the provided tools and make analyses and provides you the information called the Forex trading signals.

Providing you the forex trading signals is nothing but, that they are doing the technical analyses for you. But for providing those trading signals to you, they do charge from $50 to $200 a month for monthly subscriptions.

Forex brokers and the big forex expert organizations who provides you the trading signals by charging you will provide the individual tools like as I said earlier the PIP calculators, the Pivot point calculators etc, but they never provide you the comprehensive tool i. e “Automated Forex Trading System Software”.

The “Automated Forex Trading System Software” actually takes a single input and does all the calculations like Pip calculations, pivot point calculations etc, and generates the forex trading signals by itself and place the buy and sell orders automatically to the forex brokers with out ant human intervention.

Now many “Automated Forex Trading Software Systems” are available at low and affordable price. They are also of one time purchase. To operate them is very simple and the inputs that it requires also available free in the internet.

If you can use “Automated Forex Trading System Software”, you can really save a lot of time which you loose while researching on the technical analysis and also saves money which you spent for trading signals on monthly basis to forex signal services. At the same time there is no need for you to depend on any forex broker or on any forex expert organization for the forex trading signals, as you never know when these signal providers system can be down.

I highly recommend part time forex traders and newbie’s to use automated forex trading system software as they can really save lots of time and money.

Essential Training For Forex Traders

In the world’s largest financial market where exchanges reach up to trillions of dollars each day, many people would really want to participate in this market. Aside from being the largest financial market in the world, Forex is also the most liquid market in the world where trades are done 24 hours a day.
A lot of traders have become very rich trading in the Forex market. And, many people who trade in the Forex market everyday have found a great way to replace their day jobs. Some even became millionaires almost overnight by just trading in this financial market.
Trading in the Forex market can be very attractive. However, you should also know that there have been people who suffered extreme financial losses in the Forex market. It is true that the Forex market offers a very good money-making opportunity to a lot of people, but it also has its risks.
It is a fact that people who didn’t have the right knowledge and skills trading in the Forex market suffered huge financial losses and some even went into debt. So, before you enter the Forex market, it is essential that you should have the necessary knowledge and skills as a Forex trader in order to minimize the risk of losing money and maximize the potential of making money.
Many people who were successful in the Forex market have went through a Forex trading course to get the knowledge and skills needed to successfully trade in this very liquid and very large financial market.
In a Forex trading course, you will learn about when it is the right time to buy or sell, chart the movements, spot market trends and also know how to use the different trading platforms available in the Forex market.
You will also be familiarized with the terminologies used in the Forex market. Even the basic knowledge about trading in the Forex market can be a great help with your money-making venture in the world’s largest market.
There are different Forex trading courses available, all you need to do is choose one that suits your needs as a trader. There are crash courses where all the basic things about Forex will be taught to you in a short period of time, full time online courses, where you will learn all about Forex through the internet and there are also full time real life classroom courses where you can learn the ropes about Forex in a real classroom with a live professor.
You can also become an apprentice. However, in order to learn a lot about Forex as an apprentice, you need to make sure that you have a seasoned Forex trader who can share a lot of things to you about the Forex market.
Here are some of the basic things you should look for in a Forex trading course in order for you to get the sufficient knowledge about Forex trading:
•Margins
•Leveraging
•Types of orders
•Major currencies
A good Forex trading course will also explain a lot about the fundamental and technical analysis of charts. As a trader, knowing how to analyze a chart is an essential skill that you should have. So, when you are looking for a Forex trading course, you should look for a course that offers fundamental and technical analysis instruction.
Stress plays a vital part in Forex traders. Knowing how to deal with stress is also a skill that you should develop. A good Forex trading course should teach you how to deal with stress and trade effectively and efficiently.
As much as possible, you should look for a Forex trading course that offer actual trading systems where students can trade real money on the Forex market or at least trade on dummy accounts in a simulated Forex market. This hands-on experience will greatly benefit you. Besides, the best way to learn about anything is by actually experiencing it. Live trading and simulations should be offered in a Forex trading course.
So, if you plan on getting involved in the Forex market, consider finding all these things in a Forex trading course. Developing the right knowledge and skills in trading in the world’s largest and most liquid market in the world will definitely help you make it to the top and achieve your dreams as a Forex trader.

Automated Forex Trading System Software, the solution for part time forex traders!

Forex (Foreign Exchange, Forex currency exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.

Forex trading requires a constant monitoring. You can win the forex market if you can monitor the forex market all the time and should be able to analyze it. Trading forex needs a lot of research. Forex trading needs full time effort. It’s not so easy to win the forex market just by being a part time trader.

Whether it is full time trader or a part time trader, forex market needs a lot of technical analysis and fundamental analysis. Doing fundamental analysis is really very easier than doing the technical analysis.

A technical analysis is founded on three suppositions:

1. Movement of the market considers everything;

2. Movement of prices is purposeful;

3. History repeats itself.

Basically technical analysis should be viewed as the study of historical prices at the market in order to forecast or even know with greater probability in what direction the future prices will move. Technical analysis needs various technical indicators, different types of charts, graphical methods and analytical methods.

Technical analysis needs a lot of time, concentration and patience. At the end of technical analysis, you get an idea when to buy the forex and when to sell the forex in order make the profits.

As a part time trader, you cannot keep much time for technical analysis. It’s the work of full time traders. But in that case, how could a part time trader win the forex market?

Forex market is growing faster and faster than any other market in the world. Many latest tools have also evolved for the forex market. The solution for the part time traders is to get the forex trading signals or to use an automated forex trading system software.

Forex Trading Signals are selling and buying recommendations given by any third party. Such parties could be brokers, brokerage firms, analysts, traders, forex related software tools, etc. Different parties offer different signals, tips, and trends for trading in forex markets. It is best to collect daily Forex signals from reliable sources. A combination of fundamental and technical analysis forms the foundation of accurate Forex signals.

In the other way, the part traders should either subscribe for signals with any forex expert organization or they should have some automated forex trading system software tool which would do the technical analysis for them and automatically place the buy and sell orders for them.

If you subscribe for forex signals with any forex expert organization, the forex signals cost anywhere from $50 to $200 a month. It’s up to the individual trader to decide if the cost is worth it. Don’t think that signals can take the place of trader education: they are advice, and if you don’t have the knowledge to analyze the advice, you should go back to the books before using a signal service.

Coming to the automated forex trading system software that generate the trading signals and place orders automatically, they are more handy. Generally the tools that are provided by forex brokers, they will be restricted to only particular currencies, but that would not be the case with the automated forex trading system software. These automated forex trading software systems will be available in the internet market and that too for a low and affordable price. There is no need for you to pay every month for these tools; it’s just a one time purchase. These automated forex trading software systems generally doesn’t cost more than $100.

The main advantage of these automated forex trading software systems is that there is no need for you to depend on any other forex signal providing organizations or on the forex brokers who serves you. These automated forex trading software systems directly get the trading signals for themselves and place the buy and sell orders for you automatically without any human intervention.

To catch up with fast growing forex market and to make good profits and consistent stream of income in forex trading, I prefer the automated forex trading software system. These automated forex trading software systems will be of more useful to both part time and full time forex traders.

Why so Many Traders Fail at Forex

The old battlefields of the middle ages are not gone, they have merely changed form. Hundreds of years ago normal men would set out to build their empires by conquering lands through the force of arms. Today, normal men like you and i set out to build our financial empires by conquering markets throught the force of self. The blood soaked battlefields of yesterday have made way for the cash soaked commercial battlefields of today, with the large private armies of Family warlords making way for large pools of  family capital. Just as armies were needed to shape empires of the past, so too is capital needed today in order to put modern commercial plans of conquest into action.

In there, lies the reason as to why many forex traders fail. They go into battle risking too many soldiers (capital) and without the knowledge of tactics needed to win the fight.

Lets look at that again. 1. They risk too much capital, 2. They do not understand Forex markets.

Many traders both successful and miserable have made these mistakes, the main reason for me writing this article is so you can learn this lesson here and do not have to make this mistake and lose money, or at the very least be cautious enough to minimise your losses.

No general will risk a majority of his men in a battle that he has no plan for and where he has no idea about his enemy. So my question to you is, why would you risk your capital in market conditions you know nothing about? Luckily two remedies exist for the forex general who finds himself in this situation.

1. Make it a rule to only risk 1% of your capital in any one trade. This is to minimise your losses.

2. Educate yourself so you can recognise your chance to strike but also recognise when it is neccessary to withdraw. Learn to read the conditions of the forex battlefield. Great generals of the past would spend years learning battlefield tactics, luckily we can achieve this in a couple of months.

So in summary only risk 1% of your capital in any trade, and educate yourself about how forex markets work.