/biz/ - Business & Finance

>actually putting 500x leverage as a positive
This is why you all lose all your money and your threads gather 0 success

Show me one successful forex trader, just one. Not a single person has ever posted positive returns over at least 1 year

>>15061380
We are just beginning the paradigm shift. You are welcome to join when you are ready to become a Man.

FX anons why did the DXY / USD climb today with a rate cut?

>>15061361
Give me one good reason to invest time into learning this vs. margin trading BTC/ETH/betting on shitcoins mooning.

>>15061490
FX is the largest and most liquid market on the planet.

>>15061380
Sounds like you dont understand how leverage works

>>15061567
If I were to invest 4-5 hours per day studying and refining a strategy, and then after trading for 6 months to a year on a demo account for experience, would an average person be able to become a successful trader?
If the answer is no then it feels like gambling. Are you a successful trader? Have you "made it"? I am genuinely curious but I need more specifics since this is /biz/ and LARPers are abound.

>>15061448
The USD/Every other currency pair went up. DXY is an index against a basket of foreign currencies, so naturally it went up. But why?
The said in the beginning of the year that they would be using interest rates to slowly shrink their ballance sheet. The numbers on the stock market and most economic indicators were looking good. Generally in a situation like this, keeping interests low will just saturate the market with credit. In extreme cases it could end up creating a credit bubble. If the US economy was as solid as the president has been saying there would be no need to keep rates low.
Let me just take a tangent to explain it further. If your country is deemed a extremely good place to invest, investors would pour in, which without the intervention of the central bank, would allow lenders to charge huge interests, which in turn would discourage more investors from coming in. By lowering rates the FED makes sure investors still have the incentive to put their money in your economy.
In this case, the expectation was that the FED would increase interests, since their intervention was no longer needed to keep the incentive. But they did the opposite, which suggests that the economy is not as strong as they were led to believe. In such case you wanna protect your capital and go for safer assets, in this case the US dollar.

>>15061490
You can make more, with more consistency in the Forex. Also you won't have random pump n dumps or market manipulation.

But remember isn't there counter party risk? You are betting that a currency will go up or down. But there are others who have significantly larger bank roll than you. How do you get across this crevice? Unless you have a large amount of capital that you can move markets , it's doubtful that this is profitable long term. Sure I think it's great for big plays such as Brexit or in the case of George Soros , making the British pound lose a large percentage of its value and profiting heavily from that trade... But you aren't George Soros. 500x leverage sounds amazing but the problem is you will lose all of your money guaranteed.

fuck off with this shit

sage

The DXY started at around 98 and rose to almost 99 today. For some reason I would have thought on a rate cut that there would be money leaving the USD because lower treasury rates are expected ahead. But obviously I know nothing about FX and am here to learn.

>>15061653
Thanks for the response, OP. I'd like your opinion on >>15061631 as well if possible.

>>15061577
I traded forex for 6 years. You must be retarded if you think 500x leverage is anything but a way to entice poorfag newbs into trading and losing. The VERY FEW successful forex traders in the world make a handful of trades per year on 0-4x leverage

>>15061380
>Show me one successful forex trader,
George Soros

>>15061739
>I traded forex for 6 years
traded , past tense
if you stopped, why?
were you not successful after 6 years?

>>15061631
You can develop and employ good strategies and have consistent gains with basic knowledge of TA and economics. What happens in many cases is that you neglect the psychology aspect of trading. You start making good money and get overconfident. Then you have a big loss or a series of losses and that onsets a downward spiral. But if you have discipline you can make good money as you improve your skills.
But in order to assume higher risks you should have a deeper knowledge of economics and TA, since that will allow you to let your positions run without closing too soon, as well as recognize when extremely good deals come along.

>>15061774
Drunkenmiller??
The guy never had a negative year.

>>15061774
>>15061798
Sorry, I thought you were refering to Soros when you said traded.

>>15061774
I thought it was boring and soulless, I stopped in 2017 to trade the stock market full time which is much more exciting. I still use forex Usd/JPY and CHF as an indicator for trading stocks but I no longer trade currency pairs directly. I was 'successful most years but did not beat the stock market overall so it was pointless stress

>>15061739
No, the thing is, there are traders who wait specifically for days like today, when the FED announces interest rates to go all in and make a 5x.

>>15061361
autism triangles is best forex strategy

>>15061642
You're like, 1/3 right. Lower interest rates in a country cause investors to leave assets linked to those interest rates (in your words, 'the economy', but in practice they will just buy fewer bonds and securities that have the low interest rate), thus lowering the currency. High interest rates correspond to a strong currency because investors pile into high-yielding bonds and other assets, increasing their prices in other currencies. High interest rates are hard on the people who actually have to pay the interest, so lowering interest rates is considered good for the real economy (businesses and consumers who need credit). Low rates and a weakening currency might deter investment/credit if we were a shithole country because nobody would want to lend to us, but we're the USA, so investors will continue to suck our dicks down to 0%.

The reason the dollar went up is the same reason the S&P went down: the Fed decreased rates by 25 basis points when the market had priced in a larger cut. Just like any other market, it seems forex is driven as much by expectations of events as the events themselves.

>>15061870
>the Fed decreased rates by 25 basis points when the market had priced in a larger cut
this is the only correct answer. op is going to lose all his money with 500x. i will be laughing.

>>15061789
Would going more in-depth into TA and economics require knowledge of things like stochastic calculus or is it more "qualitative." I come from an engineering background and like math which is why I ask.

>>15061870
>High interest rates correspond to a strong currency because investors pile into high-yielding bonds and other assets, increasing their prices in other currencies.
That's part of it. But the basic reason why it makes the currency stronger is because it creates a scarcity of said currency. If you have low interest rates, loans become more accessible and therefore less valuable.
> Low rates and a weakening currency might deter investment/credit if we were a shithole country because nobody would want to lend to us
But if there if the market is saturated with credit, your ROI will likely not be high, so there would be less of an incentive to invest in the country.
China is a good example of credit saturation. There are reports showing how the productivity is not growing in parallel with credit, which suggests they are in a credit bubble.

>>15061361
This is great to see a thread on FX.
I hope this becomes a regular thing here.
Trading isn't easy and you can't win em all.
The key is risk management.

>>15061870
>The reason the dollar went up is the same reason the S&P went down: the Fed decreased rates by 25 basis points when the market had priced in a larger cut. Just like any other market, it seems forex is driven as much by expectations of events as the events themselves.
There is evidence to suggest that what I said is the actual reason.
I was trading in the some future markets at the time of the annoucement and many banks were positioned against the dollar going up. Then they started forcing the asset I was trading to go up in order to dump their toxic contracts. I notice this and made a killing when they finally release the pressure and the contract entered free fall.

>>15062000
I plan on making an /fxg/ every day until it becomes the center of this board.

Watch trader dante and trade swing points . Faggots

>>15061970
Engineering can definitely give you an edge. I have a stem background too and some of my strategies where derived from things I learned studying math. But what is more important is to be creative in the way you analise the data. TA can be very straight foward. If you can accuratelly find supports and resistances and are able to figure whether you are in a accumulation or distribution cycle, that can be enough to yield consistent gains. But like I said. There you learn economics and the more you develop your reasoning about the subject, more opportunities you'll be able to recognize.

>>15062081
>There you learn
*The more you learn

>>15061970
Answering you question more precisely. You background in stem might help you come up with a better set up when adjusting your indicators and oscillators. So it's a good idea to understand how those are calculated.
I have a very good configuration for my ROC because I bothered with understand how it's calculated.

>>15062081
>>15062094
>>15062122
Thank you very much.
One last question: I just finished up the crypto course by Philakone (he goes over general trading advice as well and it was free so I gave it a watch) do you have any advice on resources that you think are the best for beginners? I ask because it's impossible to tell shills from genuine learning material when you're starting out. I always assume any paid course is a scam.

>>15061977
>it creates a scarcity of said currency
Is this even a thing for fiat? Do you mean scarcity of assets in said currency?
>If you have low interest rates, loans become more accessible and therefore less valuable.
Accessibility of loans should be straightforward supply and demand, with lenders on one side and creditors on the other. Lower rates should increase demand and decrease supply, since it effectively decreases the 'price' of the loan to the borrower. In the US, I would expect demand to be more elastic than supply: since we are one of the best performing markets with decent property rights, everyone wants to give us their savings. Thus, in the US, lower interest rates could result in expanding credit. To see the opposite effect, look at an emerging market like Turkey. They've had to increase interest rates to boost their economy because otherwise investors would run to safety (i.e., to the US). In that case, credit supply is more elastic than credit demand.

I think I agree with you later on, but I'm done for now.

>>15062146
This is a great book for TA. But if you have no prior knowledge of the some of the tools outlined, it can become a very dry reading.
Here is a good source on the basics:
http://www.chartpattern.com/chart-patterns.cfm

Also you can get acquanted of many of the most used indicators here:
https://www.tradingtechnologies.com/xtrader-help/x-study/technical-indicator-definitions/list-of-technical-indicators/

Then the book I suggested might be more helpful.

Many of the things I learned was out of curiosity. I would just look up how bonds are priced, how ETFs are created and so on. So i'd recommend looking up things that you might come across when going into financial markets. Be proactive about it.

>>15062186
>Is this even a thing for fiat? Do you mean scarcity of assets in said currency?
No, the currency itself. If it's not in circulation, if it's just sitting there in a bank's ballance sheet, it's by all means scarce.

Accessibility to loans will be straightfoward supply and demmand up to a certain point. Lets say you have a first wave of investors who get money at very low interests and make huge ROI by investing in your country. Then there will be another wave of investors eager to dive in, but now bankers can charge higher interests because they know investors will pay. This will go on until the interests are so high that it's no longer cost effective to borrow. In order to keep the incentive to investors, the FED keeps the rates low. But if the ROI is no longer attractive, it doesn't matter if interests are low, the opportunity cost might be too high at this point. But this is only one scenario.
Another one would be the emerging markets, in which there is a higher risk to lend them money. In order to borrow money to invest domestically, the gov't will have to pay higher interests.

>>15061361
Boomer shit