The essence of the delusion – studying Forex literature leads to the same result all over the world
·95-97 of traders in the world permanently lose their deposits having studied books written by Bill Williams, Alexander Elder, Thomas Demark, J. Schwager, etc.
·After lossing their first deposit, the traders plunge themselves again into scrutinizing Forex scholars, suffering losses of the second, the third and subsequent deposits.
·It comes up to nonsense. At least, some thousand of traders mentioned in their letters the identical tendency – the more they studied classics of trading, the faster they lose their deposits.
So, below I will try to explain:
·The reasons for such tendency, i.e. the “weak spots” of the classic TA hidden from the whole world
·The algorithm of eliminating these drawbacks and “weak spots” in Masterforex-V's new TA so that new traders would not repeat the mistakes of their predecessors.
Paradox 1. Examples of how any trader can lose his/her deposit rather than get profit on Forex by using the most prominent classic trading techniques.
Let me cite some examples of the most popular techniques of the classic TA and WA (tech and wave analysis)… which are the most common reasons for traders losing their money.
The classic WA… or searching for the 1st wave impulse of the trend
Let me remind the axiom of the classic WA of trading
·Search for wave 1 with a 5-wave structure against the current trend -see the 11th grade of the beginner school under MF-V Academy
·The 1st wave of a 5-wave structure = an impulse because a correction wave does not consist of 5 sub-waves.
·The stop-loss is always placed below the base of the 1st bullish wave.
·A stop-loss below the base of wave 1 is needed as well as the dashed 3rd.
In “Trading chaos” Bill Williams wrote that he had managed to turn 10.000$ into 200.000$ by applying such trading techniques. Agree that it's nice and easy.
What examples don't get into the Forex classics' books? … Those that make traders lose.
We need a 5-wave impulse… yet, we have found out that these are correction waves.
Example 2
A 5-wave bullish impulse on h1 on June 5-9, 2008…turned out to be a correction on h4.
On that day,many classic traders considered this bullish wave as an impulse of the incoming bullish trend. For example, Vozny as an analyst, who knows the classic WA perfectly well, considered it to be an upward wave [i] of 5 (!!)
The quote
I suppose that wave [i] of 5 (!!) is formed. A correction [ii] to one of the Fibo levels will prove the supposition (end of quote)
Finally, it turned out to be a correctional wave B, which caught the stop-loss orders under the base of the imaginary 5-wave structure… and went up.
Example 3
Hundreds of examples can be given. A student of MF –V Academy described the essence and the meaning of these examples best of all.
The quote:
Before entering the Academy, I was a devoted admirer of the classic WA, which I constantly used to find among the sea of currencies the ill-fated 1st wave with a 5-wave structure. You know, Vjacheslav Vasiljevich, over 70% of his deals were unprofitable. I put the blame on myself, I cursed Prechter and other “classics”, whose recommendations are suitable only post factum or at an evident trend.
At the Academy, I understood the difference between the real 5th sub-wave and the fake one that is used all around the world to cheat all the mentioned experts in WA as well as beginners. I understood it after I started using MF's tools such as the full-grown FZR, pivots, sloping channels and the shortened “wave C”. Then. I realized that the signal of the imaginary 5th wave is stronger than the signal of the real one, at least because it will catch the stop-losses at the level where I used to placed it for a long time. Now I smile every time I see the both patterns as I start anticipating a strong/powerful wave. Before that I have lost 3 deposits, yet the most terrible things about it were hopelessness and the feeling that I reached a deadlock, where somebody skillfully leads the crowd of preys.
MF's tip:
Solve the unsolved problem of the classic WA by defining the distinct criteria of the difference between the “real” impulse of the 1st wave (consisting of 5 sub-waves) and the fake one (by using MF's WA of “the shortened wave C”). Then proceed to one of the faultless deals either with the trend or against it.
Larry Williams: breaking through the base of an m15 wave results in reversing the trend and entering the market.
Please, find below Anexample taken from Larry Williams' book (an explanation is given below, unprofitable deals are market with blue points)
Pay your attention to
·Win/loss ratio of the performed deals (50%/50% and 67%/33%... further you will see that Larry Williams is the only to reach 67% profitable deals using the classic TA)
·The fact that the book contains the best examples ( in reality the win/loss ratio is worse than on pictures in the book)
·Larry Williams' tactics can bring profit at trends. What will happen if a trader gets into a flat?
The other side of Larry Williams' TS. The example of the inconsistency of its TS during flats?
EUR/CHF Jan 30 – Feb 5, 2009… The price broke through the extremes on m15 more than10 times, going up and down… then up and down again and so on.
·As you can see on the picture 100% deals based on his TS are loss-making
·I what to remind you that L. Williams is the world's champion in Forex trading. He succeeded in making 1.1 million dollars from 10.000 dollars in 18 months.
·What would be left from a trader's deposit if he/she used L. Williams' techniques to trade during the period stated on the picture? Right, nothing would be left.
·The proof is L. Williams' trading statement (record of all his deals). First he increased his deposit from 1.1 to 2.1 million dollars, then decreased it down to 700.000$. His multiple investors suffered in the same degree/proportion. After that all of them left his investment fund for ever.
·I remind you that the 65% loss of his deposit happened because of lack of some extra strong points that should definitely be added to the champion's techniques (I doubt that most traders in the world can boast the same long-term experience in trading, psychological skills (knowing the psychology of trading), intuition, the compliance of money management rules as Larry can). Therefore the thoughtless copying of his techniques will result in even more terrible results.
The quote
Larry Williams
My unheard achievements attracted huge investment capital under my management. That was a lot of money. And then it happened: the other side of the sword sparkled in the sun. While I was trying to be a business manager (i.e. I opened an investment fund), utilizing all my few precious skills and running the business I was not fit for, my trading system or method started. The assets began reducing drastically. I was losing piles of money where I was making piles of money before!
The brokers and client yelled. Most of them withdrew the invested money: they simply couldn't stand such flexibility of their deposits.
My own deposit, which started on January 1st from $10,000 (indeed, it was really $10,000.00) and increased up to $2,100,000... suffered as well as the rest... it was also drawn into the whirlpool and it decreased down to $700,000.
By that time everybody except me had left the sinking ship. But I'm a futures trader, I love roller coaster, yet is there any other lifestyle?
It is not that I knew something before hand, but I stayed and increased my account back to $1,100,000 by the end of 1987 year.
What a year!
Here are MF's tips if you want to apply the strong sides of Larry Williams' TS to your trading and to avoid repeating the same mistakes that he did.
1. Find the algorithm of the transition from a trend to a flat and vice versa, as it was done in MF's new TA (details in book 2). By the way, the algorithm hasn't found yet by any classic trader.
·Chapter 3. Chartism as the deadlock of the classic TA. Masterforex-V's break in the deadlock.
·Otherwise, “it will happen: the other side of the sword will sparkle in the sun” for you much stronger than for the skilled and absolutely prominent trader Larry Williams.
2. Find the algorithm of the distinct wave-level detection.
Learn to find in a minute the wave level of the current wave on m1/m2/m5/…h1 etc.
Learn to synthesize the waves (for example, it is wave c(C) on m5 of correctional wave B on m30 of wave 2 on h2)
This problem is not solved by the classic TA that doesn't have wave levels m1, m5, m15 etc.
Masterforex-V was the first to solve the problem with its new WA –see the 11 grade of the school for beginners under the Academy
Examples of online detecting and synthesizing waves of different TFs by some Academy students
The beginning of calculations before the European trading session
Follow the market further – the calculations later on that day
3. Detect the patterns by Larry Williams/MF on your own (the optimization and correction of Larry Williams' patterns by MF)
·See the details in Chapter 2 of book 3. The unsolved mysteries of Larry Williams' currency reversal
·I want to remind you that under MF's theory of the controlled Forex market all the patterns of trend reversal/continuation are the same for all the TFs (for m15 used by L. Williams as well as for other TFs including m1/m2…h4 etc.)
To have a more detailed look at the situation, please, read “The special course on the optimization of L. Williams' TS by MF” of the Higher School situated at the closed part of the MF-V Academy forum.
Paradox 2. The world-famous classic trading systems… are profitable only in 40%-and-less cases.
The following questions are quite logical:
How do the classic traders profit (?) if their trading systems are profitable in less than half of the cases?
What is the real win/loss ratio of the trading based on the classic TA? (Without taking into consideration subjective mistakes, which only worsen the ratio).
We have come to the main secret of the “old” classic TA… How can the drawbacks of the classic TA be hidden from the whole world? What can help the classic traders make profits?
Have you ever thought about the following things?
·Why do the classics recommend placing the stop under the base of the 1st bullish wave? (If such a wave cannot be correctional and points at the trend reversal then why is it necessary to use a stop-loss?)
·If the stop-loss is activated (caught) what is fundamentally wrong with the axioms of the classic TA and WA?
·How often is the stop activated?
Here, the start the most interesting things:
·According to the classics themselves, stop-loss orders get active far more often than take-profit orders.
·The classics themselves treat the classic TA not the way it is treated by most forex traders in the world.
The statistical data comes first
The statistical data of the inconsistency of the trading systems based on the classic TA.
Independent statistical research of the most popular TSs based on the classic TA was done by Jeffrey Katz and Donna McCormick in their book “The Encyclopedia of Trading Strategies”.
Here are the results in the form of a table, which was made by Academy students.
|
Test |
The name of the trading strategy |
Comments |
% of profitable deals |
|
1 |
The system based on the channel breakout |
Only CLOSE prices are used. Entering the market at the current market price of the next day market opening èñòîèìîñòü. |
about 40% |
|
2 |
The system based on the channel breakout |
Only CLOSE prices are used. Entering the market at the current market price of the next day market opening. Commission and slippage are taken into account |
about 40% |
|
3 |
The system based on the breakout of CLOSE prices |
Entering with a limit order on the next day. Trading expenses are taken into account |
42% |
|
|
The breakouts of the highest maximum/the lowest minimum
|
|
|
|
4 |
The system based on the breakout of the highest maximum/the lowest minimum at CLOSE prices |
Entering at the OPEN price of the next day |
39% |
|
5 |
The system based on the breakout of the highest maximum/the lowest minimum at CLOSE prices |
Entering with a limit order on the next day. |
43% |
|
6 |
The system based on the breakout of the highest maximum/the lowest minimum at CLOSE prices |
Entering with a stop order on the next day. |
41% |
|
|
Enters at volatility breakouts |
|
|
|
7 |
Volatility breakout |
Entering the market at the current market price of the next day market opening. |
25%-45% |
|
8 |
Volatility breakout. |
Entering with a limit order |
45% |
|
9 |
Volatility breakout |
Entering with a stop order |
40% |
|
|
Long positions only |
|
|
|
10 |
Volatility breakout |
Entering with a limit order. Long positions only |
48% |
|
|
Currency markets only |
|
|
|
11 |
Volatility breakout |
Entering with a limit order. Currency markets only |
43% - 48% |
|
12 |
Volatility breakout |
Entering with a limit order with a trend filter |
47% |
Paradox3. Money management as a lifesaver for the classic TA.
The classics found the way out from this “delicate” situation. It is not the analysis of their profitable and unprofitable deals (What is the difference between the algorithms of the 40% profitable deals and the 60% unprofitable deals?)… It is money management that allows them to solve the problem by limiting the volume of a deal to 1-5% of the total deposit.
·2 profitable deals
·3 unprofitable deals
·The total profit of the 2 deals is bigger than the loss of the 3 deals (out of 5)
The “profitable-and-unprofitable-trading-systems-of-the-classic-TA” pattern/algorithm by MF.
A profitable classic trading system is not what most traders are eager to get from the classics. A profitable classic TS is based on the skill to make the profit gained from 30-40% profitable deals overcome the loss of 60-70% unprofitable deals (it is neither about the profitable deals outnumbering the unprofitable ones nor about faultless deals)
What if a trader cannot handle such win/loss ratio (2 profitable/3 unprofitable deals)? Then the TS automatically turns to an unprofitable one.
Let's move to the next paradox of the classic TA (the next “recommendations” on how to become a successful Forex trader)
Paradox4. The classics themselves treat the classic TA not the way most traders think they do.
The essence of the paradox consists in the following:
·In reality the percentage of the classics' unprofitable deals is more than 60% (the human factor is added to the imperfection of the TS)
·The classics know about it… but they do not want traders to know about it… Yet, the correction of their mistakes is not what they consider the solution to the problem
The quote
Victor Niederhoffer. “The Education of a Speculator”. Chapter 8
Whenever stocks began to decline rapidly, he rushed in to sell S&P futures. After he lost heavily on 12 such consecutive trades, decimating his equity by 80 percent, I suggested he limit his risk by buying index puts instead of shorting futures. In the worst case, if the puts should expire worthless, the most he could lose would be the premium he paid, as opposed to the theoretically infinite risk of being short the futures. He tried the puts on six more occasions and experienced another six consecutive losses. Finally, I suggested he take a break from trading.
The quote
Alexander Elder “Come into my trading room: a complete guide to trading”
Most beginners sum out with 100 little money. There is plenty of noise in the markets—random moves that defy trading systems. A small trader who runs into a noisy period has no safely cushion. I got my trading account into a comfortable high five figures that I started making money.
Technical analysis is partly a science and partly an art—partly objective partly subjective. It relies on computerized methods, but it tracks crowd psychology, which can never be fully objective.
Why do almost all people lose money in sher-term trading? Indraday channels are not wide enough to profit.
A high level of education is a handicap in trading. It makes people inflexible and stands in the way of trading. Why do many doctors and lawyers lose money at the market? Certainly not for lack of intelligence, but for lack of humility and flexibility.
Markets operate in an atmosphere of uncertainty. No certainty, only probability.
The quote
Thomas R. DeMark “The new science of technical analysis”
Heretofore, no method has been devised to differentiate between valid and invalid price breakouts
The quote
Jack D. Schwager «Technical analysis»
However, my point is that chart analysis is an art, not a science
The quote
John J. Murphy “Technical analysis of the futures markets: a comprehensive guide to trading”
At the market it is better to rely on your experience and intuition, they are the best advisers of yours
The quote
Eric Naiman “Short Trader's Encyclopedia”
Do not consider yourself a market guru, even if it is really so, as even a guru can get out of bed on the wrong side and make a lot of mistakes. The skills in fundamentals and technical analysis can only affect the profit-loss ratio if your deals. Yet the profitable deals can outnumber the profitable ones, but can still bear losses.
For example, if 8 out of 10 deals are profitable and the rest of the deals are not (the percentage of the profit is 80 = 8/10* 100 %), so you can be named a good analyst. Yet if you make an average profit of 10 points from a single deal (80 points from 8 deals) and the average loss is 50 points from a deal (it makes 100 points of total loss) your trading is unprofitable in spite of the outstanding analytic skills. In this case you cannot be named a good trader. A good trader not only makes a good analysis of the market, but also manage the positions in such a way that the total profit is always bigger than the total loss.
Have you read it attentively?
I will try to explain in plain English the essence of these and other demagogic statements that belong to the classics. They hide their real algorithm of understanding their “old” classic TA behind the demagogy they resort to.
A novice trader starts studying books by classics
·In order to learn from them how to understand and use their TA to buy/sell for sure (or at least with 80-90% probability)
·Having learned TA he/she will probably start learning MM (money management) to define the appropriate trading lots and the tactics of opening/closing positions basing on the experience and statistics of demo trading.
Instead of giving traders the methods of almost faultless opening/closing positions, the classics do the following:
·At first, they use hundreds of pages to repeat one after another the same material on the classic TA – various “heads-and-shoulders” waves, fractals, divergence, symmetrical/upward/downward/widening triangles, flags, steamers, wedges, rectangles, channels etc.)
·Then they write (after the novice traders constantly fail to apply the classic TA theory to trading) that a trader does not need 80% profitable deals to gain profit. Only analysts need 80%. Traders need something else… They should study money management and psychology, yet they shouldn't care about the win/loss ratio because one profitable deal can make up for the rest of unprofitable deals and consequently bring a good profit.
·Moreover, “the high level of education… makes people inflexible and stands in the way of trading” (ELDER) and “it is better to rely on your experience and intuition, they are the best advisers of yours” (John Murphy).
How can such demagogy be estimated?
Instead of honestly telling “lawyers and doctors” that in trading, as opposed to medicine and law, we (the classics) failed to develop the distinct rules of scientific analysis, what leads to the “fatal outcome” of 97% of traders' deposits (the doctors would understand at once the development level of such a “science”, the real meaning of Elder's words “in this science the is no definiteness, only probability”). Instead Elder made a conclusion that it is lawyers and doctors themselves who are to be blamed for their losses because of “the high level of education”, which “make people inflexible and stands in the way of trading”.
What other “science” this principle can be applied to: the higher the level of education the worse?
Worse for whom? Is it worse for a trader or for a “classic” who sooner or later starts getting the following questions from the students/readers with higher education?
·What kind of science is this if it doesn't have any strict/clear rules? The best result of using these methods is 40% profitable deals, yet the methods help only 1-3% followers in the world.
·How can somebody get into the 3% of best traders in the world just after passing through your expensive 2(3)-week courses (by Elder in Mexico)? (Why do people study much longer to become a doctor, an engineer, a lawyer and other world's leading specialists in the world?)
·Is it true that, under MF-V's concept, you use psychology and MM to hide the drawbacks of the classic TA, which can generate only 20-50% working methods/techniques (it is the same as tossing a coin)?
·Is it true that the theory of the controlled Forex market implies that the movement algorithm of all the currency pairs is absolutely identical on all the charts (from the tick chart and m1 to d1 etc.)? Consequently, if you advise green novice traders, which cannot trade properly, that they should trade only on the senior charts/timeframes and only with big deposits (million dollars) doesn't it look like an outspoken provocation in favor of DCs and brokers that send you on business trips all over the ex-USSR instead of letting you trade?
It is very interesting:
·What other area of human activity can accept that 60%-failure practical result is the fundamental part of its science?
·Do novice traders know that 60%-and-more classic methods of trading that they study in search for “the Holy Grail” are initially invalid?
The algorithm of the consequences of studying classic works on Forex for novice traders.
For green Forex traders:
1. The more books by classics a trader reads the more muddle his/her head is in.
·Numerous traders confess that they demo-trade at Forex much better (after studying 1-2 books by the classics) than after studying 5-12 such books based on the classic TA.
·MF's tip: if you do not understand why exactly this regularity is repeated thousands of times (and it can be proved on you) re-read/re-study what is written above in the chapter.
2. The outspoken scam DCs and broker companies at Forex
·They provide traders with free online libraries on Forex
·They recommend studying the books by the mentioned classics…yet after studying them everyone should open a real trading account exactly with them
·Think by yourself: why shouldn't they advertise the books persuading the beginners for real that trading accounts should be opened with broker companies, yet the deposit should count 50.000$ (it is better to start from 1million$)? After 18(!) unfortunate tries it is better to try 6 more times…if they are unfortunate again, only then it is high time to stop for some period… and calm down… it is not necessary to look for some faultless methods (you are not an analyst, so you do not need them).. it is better to “follow the market” (the beginning/end criteria of which are not known)
3. Any mentioning of books by Masterforex-V and its Academy (as opposed to books by Elder, Demark, Bill Williams, Prechter, Nili, Dinapoli) is banned at the forums of many DCs.
Why is psychology more important for Alexander Elder than the classic TA?
When you understand MF's algorithms of
·the role and meaning estimation of the classic TA
·how the classics try to hide 50-60% loss of their methods behind psychology and MM
then you can read and estimate Elder's book " Come into my trading room: a complete guide to trading" from a completely different standpoint.
Elder's algorithm of the success triad of a trader
The quote by Elder
The trading success is based on 3 fundamental elements: Psychology, methods and finances.
·psychology
·methods (TA)
·MM (“finances” or “managing trading capital”)
Masterforex-V's algorithm of trading success components is different form Elder's one.
1. The “ingredients” of success are more numerous than Elder named.
·Either Elder lies or he doesn't know
·Elder named only the first 3 components of any successful trading (the others will be examined/considered in a separate chapter)
2. MF's new TA implies another order of the sequence of the fundamental components as opposed to Elder's one.
·TA
·Psychology
·MM
·The right choice of a DC/ broker to trade with (as it is not obvious that a trader will get the earned money from some DCs/brokers after honestly gaining a good profit). A separate chapter is dedicated to this problem.
3. The proof that MF's sequence order is the right one results from:
a) The inner correlation of the components, each following component of which loses its core meaning without the preceding one
·Under Elder's distorted logic, any professional psychiatrist not knowing TA should trade better than any skilled trader not graduating from the department of psychology and psychiatry. This is nonsense.
·Doctor Elder (a psychiatrist) should understand it (that it is nonsense) because he would never dare suggest to surgeons, urologists, traumatic surgeons that knowing a patient's psychology is primary to their professional knowledge and skills, implying that the lower the level of the professional knowledge and skills are the better it is for the patient (as excess (??) level of professionalism is harmful and leads to inflexibility)
·Doctor Elder can write such nonsense only for novice traders, thus emphasizing the importance of his 1st profession of psychiatrist and fully utilizing the techniques and algorithms of this profession.
b) The sequence order introduced by MF is based on the 5-year experience of Masterforex-V World Academy students, when some thousands of novice traders followed the MF-V's algorithm of understanding these fundamental components of any successful trading.
·First comes the knowledge of TA (the workout of faultless trading techniques (opening/closing positions) on the demo account through the new TA by MF)
·Then the students get some psychological problems (how to overcome the fear and to gain profit when you consciously understand that the wave is not over yet).
·And at last MM becomes urgent when it is possible to get various amounts of profit with the same techniques and psychological stability by applying various MM strategies to your trading.
Specific departments of MF Academy are founded to deal with each of these problems
·Over 10 departments deal with various branches of TA
·The Department of Psychology deals with psychological problems of training. It is headed by a professional psychiatrist/trader (who is 100% agree that psychology is secondary to TA)
·The Department of Statistics and Money Management
MF's basic conclusions and estimation algorithm of the “old” classic TA for novice traders.
1. The following can be concluded about the books by TA classics:
·They count some hundreds of volumes (visit the biggest free online library on Forex under MF-V Academy)
·They are not classified … even according to the area of their analysis.
·For example, inside the area called “the technical analysis of trading” there exists tens of contradictory areas of analysis. Yet 99% traders in the world don't know about their existence.
In order to understand the consequences of such “Forex training” through the literature, based on the classic TA, let's imagine any other scientific literature in its place. For example, books on medicine:
·The books are piled up without the division into areas – books on dentistry, psychiatry, surgery, urology, endocrinology, traumatic surgery etc.
·A “green” novice is offered to start reading one and all books by the classics even without explaining what purposes should each book be studied for
·It is also not explained and indicated what is false/ great/ disputable in each of the books.
·Does a would-be surgeon have the ghost of a chance to enter the 3% of the world's best surgeons? Or does he have a chance to become at least a good surgeon? Right, he has no chances. Does a trader have a chance in such situation?
2. The theory of the classic TA is remote from practice
·The classics do not arrange practical training courses for those who bought their books
·Again, let's draw an analogy with the same would-be surgeon. He/she was told that from thousands of books he/she is required to study first the books on the specialty (not on dentistry).
·He studied them and made notes… Has he become a surgeon now? Without a single operation? Without many years of practice under the supervision of skill teachers? Without annual advanced training as an obligatory condition of the further development of his/her professionalism?
3. Most books on Forex trading written by the mentioned classics…are anti-scientific (including the absence of any relation to other works on Forex TA)
·It is banned in any science
·There exist precise methods of any scientific analysis used for writing articles, books, monographs, dissertations when the author first shows the readers the achievements of the preceding researchers and analysts in the area of study, then he defines what was right and wrong in the results of their work and how the problem is solved in his own work through the comparative analysis of both the author's work and the works of his predecessors.
·Knowing this methods try to look at the classics' books from a different viewpoint
·These books are written as though each author is a pioneer in the area… Everyone tries to find the HOLY GRAIL to make the whole humanity happy without defining the clear framework of applying his techniques, without analyzing other methods of solving the same problem, often making evident duplicates of the parts of other works with bad mistakes and miscalculations of his predecessors)
4. Many classic books on Forex contradict one another.
·It is nonsense for any science (nobody is going to offer a surgeon 5 contradictory books on how to remove appendicitis with recommendations to choose on his own the most suitable method and to bear personal responsibility for the consequences of the operation, including material responsibility)
·It is commonplace in Forex trading. All the above-mentioned stuff begs the following question: Is the literature on Forex scientific or unscientific these days?
You can find a detailed answer to the question in Book 2 by Masterforex-V
5. Many of the books are written by classics not for the Forex market.
·None of the classics analyzed and wrote books about the controlled Forex market (a question is logical: what is going to be applied in trading by novice traders? The methods of the contradictory classic TA ? What will come of it?) Happens what is to happen.
·Most of the books are written on stock exchange, not on Forex.
6. The results of applying the classic TA and WA to real trading are sad.
·Can you imagine surgery, 97% of operations of which would end in fatal outcome?
·The win/loss ratio at Forex is still 3%-to-97%. Yet DCs and broker companies keep on persuading their novice traders that the books by these classics are obligatory to study. Think yourself who will benefit from it? DCs or traders?
7. The supporters of the old classic TA admit that:
·It is art rather than science where “it is better to rely on your experience and intuition, they are the best advisers of yours” (John Murphy).
·If the trading is base on their classic TA it is possible to profit only from five-figure deposits (Elder)
·They are amazed at those traders who try to find faultless deals… because the traders are not analysts, so they do not need many profitable deals to earn at Forex.
8. Money management (MM) and psychology became the lifesavers for the old classic TA with its 50-70% unprofitable deals.
·Instead of increasing the profitability of the used TA techniques… MM and psychology are used by the classics to hide the drawbacks of the classic TA.
The solution to the problem of studying and applying the classics' works to Forex at Masterforex-V Academy.
To eliminate the above-mentioned drawbacks of the classic TA the Department of Higher School was founded under Masterforex-V Academy. The department deals with all the branches of the classic TA in the form of separate special courses. The functions of the department include:
a) objective study, analysis and optimization of:
·the essence of each classic author's trading system
·the new (including the great) that a certain classic discovered
·what part of his theory needs to be optimized and corrected?
·what was initially wrong with his theory and why?
b) the synthesis of the old TA theories by the classics and the new TA theory by Masterforex-V
·what are the similarities and differences each classic theory has as compared with the new TA theory by MF?
c) daily practice in applying the optimized classic theories to real trading.
There is no other way in the world to become a professional than to make it through the knowledge, objective analysis and the correction of the mistakes made by the preceding generations.
When you understand
·The logic, algorithm, strengths and drawbacks of the classic TA
·The MF Academy algorithm of correcting the mistakes and drawbacks of the classics
Then you can examine the following delusion at a completely different angle of view:
Why do novice traders have only one way after finishing Forex training courses with DCs/ brokers? This way is to lose the deposit.
These paradoxes will be looked into in the following chapter.
The chapter can be discussed at the Academy forum
Introduction to the 2nd edition of Masterforex-V's Book I. >>>
Chapter 1 - The 1st delusion of 97% of traders in the world. Predators and preys at Forex. >>>
Read more
Part II - Masterforex-V's Trading System and new technical analysis. >>>
Book 2. Technical analysis in the Masterforex-V Trading System >>>
REPORT ERROR
