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Nice to see another ex-British country starting to make decent progress. This will have good results given time.;)

It is true, though most traders don't follow this simple principle. They chase reversals.

Why is enduring a 20-25% correction compulsory? That seems too deep to bet its still just a pull-back. I'm pretty sure I would find I am stopped out before price gt so far off track. Then of course if it does turn out to be a correction, that's just another good place to get back in.

I'm just surprised a long-time professional got so excited he thought his chair was going to explode.

This sounds too simple to work but it is correct. This is the basis of a successful trading career. An annoying aspect of forex trading is when people say it is too hard, too complicated, too risky. And they know this because they have lost money. I'm sorry, but I'm not going to be told how to...

You could start a poll on a market you wish to buy into - if the majority of traders (but you need a large sample) are saying "short it", go ahead and buy. At any one time I believe about 80% of active traders are unprofitable, and long run 90+%.

Lots of terms I have never heard of before. Though I have heard of volume: I don't ever consult volume figures but people who do say its just as open to interpretation as price action. Hard to see this as an objective criterion for pull-backs v's reversals. Circumstantial maybe..... As for...

What I do is very open and "honest" in a sense that ordinary forex "brokers" are not. I am in the UK and am spread-betting on the exchange rates between various currency pairs.If GBP/USD is 1.3700 and I think its going to go higher, I might bet £1 per point that it will go higher. The bet is...

The best example I can give would be a trend. A pull-back doesn't end a trend. so everything that makes the trend what it is remains in place when the pull-back ends so its safe to get in when the pull-back ends. But not if the trend has ended - its the characteristics of the trend that are key...

You might know something I don't know about there being objective ways to differentiate between a pull-back and a reversal. So what are some of these please?

But the believer doesn't need evidence, in fact looking for evidence is a statement of non-belief. And finding the evidence of a physical artefact from the same age as that described in the bible doesn't make someone become a believer in all the rest of the stuff that's in the bible. Like I...

Just the Long/Short ratios. Most of these trades will be losers, most of those traders are losers.

Bearing in mind that over any period of time, 90% of traders are losers I find I usually take the opposite position to what Oanda's clients do - see their sentiment indicator at https://www.oanda.com/forex-trading/analysis/open-position-ratios.

All in all, this is a pointless thread. The people who believe in god will continue to believe the bible is the ultimate truth even in the absence of archaeological evidence. The people who don't believe in god won't accept that archaeological evidence of one small biblical statement verifies...

There is no objective way to know a PB is not a reversal. So continued buying in as a PB falls is gambling. Buying in on renewed strength is a viable trade as long as price has not fallen so far as to break down the bullish set-up in the first place. But either way, the important feature is the...

This is from Simon Denham at Capital Spreads, now LCG - http://www.financial-spread-betting.com/UK-spread-faqs.html. He seems happy with the 80% figure as I remember him using it in this Youtube interview clip too - .

Yet its very possible for price to fall by massive percentages under the same fundamental environment. Unlimited fishing for entries which are lower and lower will lead to ruin sooner or later.

This is a great argument and its hard to argue it won't work. But I think it over-focuses on price instead of set-up. This causes a bias towards stops which are too tight, which serve as money-saving mechanisms rather than responses to price action. Alternatively, it could be used (abused) as a...

Is Xela's post above not the most cogent and elegantly composed piece on the forex market for private retail traders ever posted? I clicked to "Like" it but I didn't think that was enough.

Its something I've been told personally and online but its always possible its the same Chinese whisper going round and round. I did see some Youtube clips with SB firm bosses saying this though. I'll see if I can post these. However, assuming 80% are losing at any one time, the total losers...