The noise and the Fury.
When it comes to design a trading strategy there is a lot of noise about fuzzy concepts, bizarre arguments and misconceptions repeated as mantras. If you are a trader at some point or another those misconceptions will hunt you and they will make you lose your time and your money. There is a high price in following false gurus or cocky traders.
Stupidity Graph
Who should I listen to?
If you do your own research on trading, probably you’ll end up listening false gurus or stupids.
A false guru is, in one way or another, a bandit. He/she would be on the Intelligent area. And that’s something! Up to a certain point you can show respect for intelligence.
A cocky is just a stupid. You can mock them or show no mercy for them. However, on internet same as in all aspects of life, stupid people dictate the rules. You would become stupid as well if you tried to fight them: First, there is nothing to win. Second you have no chances to beat them. So, just ignore them.
Or, in small rooms where they cannot dictate the rules yet, as this blog, forbid them.
Markets? What Markets?
Today I want to write about the best markets to trade. I have been in this business enough years to see that when one tendency is taken as granted, after enough time has passed the opposite becomes the only truth.
No matter the idea: the first one or the opposite could be the real one. Sure, there are sound reasons for any of them, nobody has a clue about the reality, though. That’s why you can go up or down or the other way around.
Forex
In my case I trade Forex and only Forex. But wait a minute! I’ve been told hundreds of times that this is a BIG Mistake. It is so clear; don’t you see it? You would be crazy if you pretended to make money with Forex. Oh. Come on! Don’t be so naïve and get away from Forex:
- CFD are a scam. I’ve read it in tons of books, not to mention internet. Even CFD are forbidden in the USA
- Brokers are evil market makers. They will hunt your Stops, repaint the candles, doom your finance
- Data is not reliable
Maybe the cocky traders are correct, but if Forex is so bad idea what market should I trade? Oh, my friend, that’s an easy question – says our cocky friend.
Futures
Futures looks like the alternative to Forex.
- Regulated
- An only market
- An only data
- Most notorious traders trade on Futures
But if some freak like me doesn’t care about notorious people and I’m able to trust the also regulated CFD brokers. What else can you give me to convince me to trade Futures?
And here it comes a good one: Futures give you access to new markets as: Indices, Commodities, metals,… Now, we are talking! I wouldn’t dare to trade anything other than Forex in CFDs.
Jungle of markets is vast: Cryptos, options,…
In my opinion it doesn’t matter at all which market you decide to trade. Each market is a different beast, and you must adapt to them to survive. There is no easier Market to trade. All of them are ruthless if you don’t follow the rules.
Novice traders, and that’s a common mistake, prefer to avoid Forex and trading Indexes or actions. Indeed, you can win more money on those last markets only because nowadays they are biased. Upwards tendency is so strong that it makes difficult to lose money, it almost doesn’t matter which strategy you use.
I have checked this sentence with a couple of real examples:
- Some years ago, I saw an entire trader community advising to trade Gold. Best strategies were on Gold. Well, that lasted until Gold finished its long tendency. After that all those strategies bit the dust
- Crypto fever. When bitcoin rocketed from 10,000 USD to 60,000 USD I traded it on CFD with the simplest strategy you can imagine. Dochian Channel: I had a Profit Factor of 3. Now bitcoin is stagnated, my Dochian Channel strategy is on the fridge.
I won money on my Dochian Channel applied on bitcoin, but I would have won much more just with Buy&Hold. Even hodling right now. Which I do by the way, I’m a proud hodler!.
Do not let Markets to fool you
My point is that Forex is probably one of the hardest markets to trade because probably is one of the less biased.
That’s the reason it makes more difficult to get money from Forex. However, if you are trading one of the biased markets. Carefull! Once the bias fade out you are going to be in big trouble.
