There is Joe who opens the app, looks at the chart and decides to make a trade. How much to buy? Two lots! Ouch! I hit the stop loss! Now I have to recover and I reverse four lots!
On the other side of the trade there is the software of the big bank that decides the position size according to this formula:

Who will earn today on the market?

Short term trading, intraday, swing, etc etc is really difficult. It is difficult in both discretionary and algorithmic. I have strategies that run automatically but I trade others at discretion. Do not be enchanted by those who tell you that it is enough to learn easylanguage and then you will have nothing to do with the aspects of the emotional sphere. They are both difficult, period. Trading is simple but not easy, this is one of the classic adages and I am convinced that it is one of the truths of trading. Trading is difficult but it is also the most beautiful way that man has invented to make profits. If you earn you have to thank yourself, in trading you don’t have to lick the ass to your stupid boss3 or stay eight hours on the assembly line, if sufficiently capitalized and with the right tools you can earn the equivalent of a worker’s salary in ten minutes . What’s more beautiful? Of course, the downside is that if you are wrong you lose money, while at work in the company if you make a mistake, well everyone there has their own methods to get away with it …

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Il trading, il trading vero quello short term, intraday, swing, ecc ecc è veramente difficile. È difficile sia in discrezionale sia in algoritmico. Io ho delle strategie che girano in automatico ma altre le trado in discrezionale. Non fatevi incantare da chi vi dice che basta imparare easylanguage e poi non avrete niente a che fare con gli aspetti della sfera dell’emotività. Sono entrambi difficili, punto. Il trading è semplice ma non facile, questa è uno dei classici adagi e sono convinto che è una delle verità del trading. Il trading è difficile ma è anche il modo più bello che abbia inventato l’uomo per trarre profitti. Se si guadagna bisogna ringraziare se stessi, nel trading non bisogna leccare il cXXXo a capi inetti o stare otto ore in catena di montaggio, se sufficientemente capitalizzati e con gli strumenti giusti si riesce a guadagnare l’equivalente dello stipendio di un operaio in dieci minuti. Cosa c’è di più bello? Certo il rovescio della medaglia è che se si ha torto si perdono soldi, mentre a lavoro in azienda se si commette un errore, beh ogniuno lì ha i propri metodi per passarla liscia…

Here is a classic example of a grid trading system, which opens short “up” and long “down” and if, for example: the bass is not the “real” bass, the system medium and opens a new long, and so on until… until the account does what this system is doing: LOSE ALL. Be careful when some barker offers to give you money to operate these scammer systems. The barkers use these systems precisely because the equity rises seamlessly and therefore at the beginning of trading the system gives the impression of earning, only the loss-making positions are left there to swell until (I repeat) LOSE ALL. They are not closed just to leave the beautiful equity without the classic drawdowns. But the crook puts the sand under the carpet until then… please don’t make me repeat it for the third time.

Ecco un classico esempio di trading system a griglia, il quale apre short “in alto” e long “in basso” e se, ad esempio: il basso non è il “vero” basso, il sistema media e apre un nuovo long, e così via fino a….fino a quando il conto non fa quello che sta facendo questo sistema: PERDERE TUTTO. State attenti quando qualche imbonitore vi propone di affidargli denaro per operare con questi sistemi truffaldini. Gli imbonitori usano questi sistemi proprio perché l’equity sale senza soluzione di continuità e quindi all’inizio del trading il sistema dà l’impressione di guadagnare, solo che le posizioni in perdita vengono lasciate lì ad ingrossarsi fino a (ripeto) PERDERE TUTTO. Non vengono chiuse proprio per lasciare l’equity bella senza i classici drawdown. Ma il truffatore mette la sabbia sotto il tappeto fino a quando poi… per favore non fatemelo ripetere per la terza volta.1Persone raggiunte0InterazioniMetti in evidenza il postMi piaceCommentaCondividi

If it is true that the market is here to transfer money from one hand to another, we are close to a turning point. In the USA, retail traders have increased a lot, also thanks to the war of the “low cost” brokers whit zero commissions. There are millions of long contracts from small investors who are unlikely to be given any profit. As we know, in the game of trading, there is one who loses what the other wins. Do you think the big institutions will let all these small investors “win”? Do you imagine Goldman Sachs losing millions of dollars in favor of small retails? I just don’t and in my opinion there will be changes in the market dynamics and patterns, a bit like when the HFT invasion occurred.

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Se è vero che il mercato serve per trasferire denaro da una mano all’altra, siamo prossimi ad un punto di svolta. In USA i retail trader son aumentati tantissimo, anche grazie alla guerra dei broker “low cost” che fanno tradare a zero commissioni. Ci sono milioni di contratti long di piccoli investitori ai quali difficilmente gli si potrà dare chissà quale profitto. Come sappiamo, nel gioco del trading, c’è uno che perde quello che vince l’altro. Secondo voi i grossi istituti faranno “vincere” tutti questi piccoli investitori? Ve la vedete la Goldman Sachs perdere milioni di euro in favore dei piccoli retail? Io proprio no e secondo me ci saranno appunto cambiamenti nelle dinamiche e nei pattern, un po’ come quando ci fu l’invasione degli HFT.

This trade wasn’t like the one of Gregory Zuckerman’s book! It was only the best trade of my life, not for the money I made, but for the way I did it. A trade with small risk and big profit, 93 pips on eurusd, an R5.6 trade with pyramidation, stop loss at break even asap and then profit pocketing. I wanted to leave it open up to 100 pips but I closed it because I thought that the FX market doesn’t give a shit about my target and surely knowing it would punish me, so I closed the trade. I’m happy because I made the trade perfectly respecting my trading system (in the past unfortunately many times I did not do it) I understood how I have to trade with the right flow and in sync with my psychology and my system, this system fits me, I prefer this way than doing intraday and scalping. I suggest to find the system that best suits your person and use it, make mistakes, many mistakes but not self-sabotage (repeat the same mistakes). I will not overtrading now, I will wait for my favorite instrument signals and then I will return to market with my method.

in the next post I’ll put my worst trade, because if I hadn’t done that, I wouldn’t have done this today!

I don’t know about you guys, but these things make me so angry that I’m off for today. I go long on the Dow Jones, place my stop loss and take profit on the daily high. I go on to something else when I hear the classic DRIN of the metatrader when the trades close, I run to the station and see my take profit violated and the market skyroketing I immediately open twitter to understand the reason, read Trump’s tweets and understand.
This bad feeling is called regret, it’s one of the negative emotions a trader has to live with. I closed a great trade, the best one of the month, but the little voice says: if I hadn’t put that take profit I would have done double, damn double! Not 10% more, 100% more!
Patience, I turn everything off and that’s enough for today, there is no more psychological serenity, I go to drink the beer deserved or consolatory? This is trading…

Today we talk about trading scams, but not the usual scams, I want you to understand how the smartest scammers operate.

Let’s start from the assumption that these are scammers who have been trading for a while and obviously can’t make money and that their targets are foolish fools attracted by the fact that these scammers are profitable and will multiply their money, of course the scammers are beginners losers attracted by the advertisements of easy earnings. Not exactly geniuses.

How do the scammers make the scammers realize that they have a profitable system in order to attract them? Just take a background, a profitable trading history, just google or myfxbook and take a screenshot or link to some profitable account with equity starting from bottom/left to top/right and with dizzying profits like 1150%, 176% etc etc. etc. Otherwise you do backtests with metatraders, but beware they are not real backtests, they are ex post tests knowing how the market has moved! You make the test go in manual and you place orders on the minimum and maximum and you make mega profits, then you print the report and you prove to have “the story”.

Okay, how do they can transfer money from the pockets of greedy traders to own? There are various methods, leaving aside the more primitive and crude ones, I would like to focus on the most ingenious and fashionable methods in this period: the first is to involve people by directing them to subscribe to the broker “friend” through partnership codes and then the famous PAMM and MAM (a unique account where many put money and an unidentified guy manages it for them with unknown methods or through expert advisor trades the accounts of the unsuspecting). Obviously for EU regulation is not so simple and there are still many ways to bypass the regulation.

Okay created the story, cast the nets and caught many fish, how do our heroes now “earn” the money of the poor greedy and foolish savers? Simple, they start to trade at their best without using STOP LOSS and going against the trend, you should now understand how they make money: losing! Where does that lost money go? In the pockets of the broker “appears” who, after agreement with the founder of PAMM/MAM, recognizes a percentage of losses to the scammer who gains on the losses of his clients. I have seen famous PAMMs taking margin call or burn accounts that in previous years had performed 1000% and now happen to go below 40%! Obviously the brokers willing to do this are brokers based in offshore tax havens and the founders of these PAMMs are resident in who knows what country in South America or East Asia. As in: “Sue them later”.

So ultimately do not be fooled by these characters, in trading you go ahead only if you are honest, in this case honest with yourself: just ask yourself: do I have time, money, knowledge and skills that can allow me to earn? If the answer is no, you must be honest with yourself and not use shortcuts by entrusting your money to strangers.