Where should newcomers to trading begin

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Where should newcomers begin trading

Trading is one way to earn online. Its essence lies in online financial trading that, as a whole, run on the principles of live fund and currency exchanges. Those in marketing would like to have you think that it is a very simple and highly-lucrative way of earning additional income. However, the reality isn’t so bright, there is no “easy money”.

Anyone can achieve success trading. Every experienced trader was once a beginner, completely unfamiliar with the ins and outs of the exchange. That being said, much like in any other professional field, in order to achieve success trading on the financial markets, you must invest a reasonable amount of time and effort.

So, the strategic goal is clear, learn how to trade so you can generate a stable income. All that is left to clarify is what tactics beginners should take in terms of a plan of action, so as to fulfill their dreams as quickly and easily as possible. This article aims to answer the questions of where newcomers to trading should begin. It is very important because gradual growth is the key to success.

What is trading

To begin with, it is worth clearly outlining trading as an idea, because you can’t learn about something without having understood the root of the question. Trading is a speculative process where profit is generated from the difference of asset price at specific times. You can trade with anything, however, more often than not it is with currency pairs, exchange indexes, and raw goods. Recently cryptocurrencies have gained traction as well.

The principle of speculation that everyone is familiar with is, “buy low, sell high”. In such a case, it is only possible to generate profit from a price increase. That being said, the terms of contracts on the financial markets enable you to earn profit not only from positive price trend growth but also from decline. First, a deferred delivery sale agreement is drawn up, but later it is brought back but at a lower price. This includes one of the main benefits of has over-invested directly, you can profit under any market conditions, even on the back of a full economic collapse.

Contracts with fixed terms

Classic trading is tied to the percentage of profit made from how significantly the price changes during the trading operation. The introduction of futures with fixed terms, however, changed the situation. They laid the basis for the modern “Buy/Sell” contracts traded online. Their main advantage is simplicity. In order to generate profit, traders had to be relatively sure of their forecasts, in the sense of where the price would be at the time the trade would be closed, higher or lower than the current value.

There are also contracts for difference (CFD). The profit isn’t fixed, rather it directly correlates with price fluctuations. Binomo trading platform offers users both kinds of contract, creating a wide variety of opportunities for beginners and professionals alike.

Where should a beginner start?

The very first step (to acquaint yourself with trading) has already been completed. Therefore, let’s move on to the main topic of this article, the step by step process that traders should follow to educate themselves on how to trade effectively. For starters, here is a short outline:

1. you first encounter trading, typically through an advertisement;
2. you acquaint yourself with the topic more in-depth, understanding the basic ideas;
3. you select and register on the website of a trading platform;
4. you open a free demo account and place your first trades;
5. you begin with systematic research, watching video courses and reading articles;
6. practice, practice, and practice again combined with continuously expanding your understanding;
7. you make the move from a demo account over to a live one, investing your own real money;
8. using ready-made trading strategies, work out your own;
9. continue gaining experience, analyze your mistakes, and modify your trading system.

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Ask any professional and they will tell you that a trader’s education is never over. The market conditions gradually shift. Therefore, if you don’t keep track of current trends and respond quickly to changes, you won’t continue making a profit.

Choosing a company and registering on a trading platform

This is a key point, the most important one when starting out. The problem lies in that there are many frauds out there, whose goal is to profit from careless beginners. They simply don’t release users’ funds. You can’t access your profit or even recover your original deposit. This is why it is so important to choose only verified
trading platforms recommended by well-known services.

There are several companies we would recommend listed on our website. One of them is Binomo. This company in specific provides the ideal platform for newcomers to trading. This much can be gathered from all their awards. In 2020, Binomo was named the best trading platform for beginners by Fx Expo Awards.

The advantages Binomo has to offer for beginners:

• you get a free demo account, enabling you to refine your trading skills without any financial risk;
• the minimum deposit is $10 dollars or ₽500 Rubles, with investments from $1 dollar or ₽100 Rubles;
• they offer a few dozen video courses expanding on key trading points;
• there are around 100 overviews of ready-made strategies with detailed trading instructions;
• they provide individual instruction under the advisement of a personal manager/analyst.

The company offers provides truly excellent conditions for learning, because from a technical point of view there is no difference between a demo account and a live one. In theory, it is possible to learn how to trade from square one without investing any funds at all.
That being said, the psychological aspect of trading is important. Trading on a demo account is very different than trading on a live one. Therefore, there is no benefit to excessively prolonging the demo account phase. You can end up forming a warped relationship to money, because a real deposit, unlike on a demo account, can’t be replenished with the click of a button.

Individualized instruction is only available for VIP clients who trade with a real deposit and have invested a minimum of $1,000 dollars. This premium status comes with many other privileges, enabling you to trade more effectively. For example, an increased profit percentage or a 100% bonus upon replenishment.

Trading on a demo account, the pros, and cons

A demo account is, in essence, an identical account with the same opportunities, although, unlike with a live account, there is no chance to generate real profit. It simulates the live market.

The advantages:

• you can trade on the live market without risking your own money (ideal for beginners);
• you can test out risky strategies and new trading systems (ideal for experienced traders).

The drawbacks:

• trading deposits carry little to no weight in the mind of the trader;
• you can’t earn funds, however, profit is the main drive for education.

Overall, the skillful use of a demo account has more benefits than drawbacks. It makes it so you can get through the initial stage of trading with minimal losses. As always, you need to find a balance, a “happy medium”. As soon as you begin to achieve consistent positive results and stop consistently losing funds on a demo account, then you can gradually try trading on a live account using a previously-tested strategy.
If you haven’t already tested it, then go right back to the demo account, as at this stage it would result in real financial losses. That isn’t an option for the majority of beginners. In any case, it will be the price of experience. That being said, in the initial stage of trading on a new platform, it is recommended that you use a demo account either way. This is true for experienced traders as well. It is important to learn how to work any new trading terminal first and foremost, such as how to place trades, apply indicators and so on.

Where to learn about trading

Trading is as dense a topic as any of your typical technical professions. Gaining a basic understanding of the most important aspects doesn’t guarantee success. The issue is that the market can’t be fully forecasted through an algorithm. If that were the case, robots would have long taken over on the exchanges, as they have in the majority of manufacturing.
80% of a trader’s success is due to their “background knowledge”. It includes their knowledge of market analysis methodology, capital management guidelines and other nuances. The remaining 20% is down to a “feel for the market” or intuition. Of course, there are no psychics here. The issue is that our brains are very complex structures, in many ways science doesn’t fully understand yet. So, as with any on-going developing sphere of activity, some of its functions remain concealed.
When an experienced trader studies an asset chart, there are many unknown subconscious processes in their brain at work. Along those lines, they come to two very different conclusions in two identical (from a technical point of view) situations, and that is completely justified.

The best way to learn is to trade on the live market. It is these conditions specifically that Binomo offers. The key factor to success is your own trading experience. No ready-made strategy will replace your own knowledge and understanding of the market. Using a variety of trading systems is very helpful in the early stages of teaching yourself to trade. Later on, every successful trader must work out something of their own. Building your own trading system to best suit you as a trader.

The method trading systems are based on

For starters, learn how to place trades on a trusted trading terminal. In the second stage, you can move on to researching methodology. There are two approaches to market analysis, fundamental and technical. The latter being easier than the former. Therefore, it is worth starting with the basics of technical analysis.

Beginners must undergo some sort of educational course. For example, Binomo provides dozens of video courses that cover all the principal points of trading. To begin with, start trading with 1 indicator. Ideally, simple tools are best suited, such as the Moving Average, the RSI, Stochastic and others. Binomo’s trading platform provides 14 of the most popular indicators.

Later, you can move on to combination systems. On our site, as well as in the “Help” section on Binomo’s trading platform, the best systems for beginners are listed. However, it is worth pointing out to beginners that the effectiveness of a strategy isn’t based on how many tools are used in it. Actually, many professional traders trade on a plain candle chart. This approach is called Price Action.


These are the recommended approaches in sequence:

• develop your trading terminal’s interface, trading on the indicator “majority rules”;
• trade with 1 simple indicator;
• learn chart analysis, tools such as “lines”, “channels” and others;
• learn the basics of fundamental analysis through the ”economic calendar”;
• develop a combined strategy with 2-3 indicators and supplementary tools;
• work out your own trading system based on knowledge you’ve acquired and your practical skills.

Conclusion

Start trading, just start trading on the market, it is that simple. That being said, learning how to do this effectively and generate a stable income in more complex. However, it is an achievable goal, so long as seriously set yourself to it. Of course, out of 100 beginners, far from all will become professional traders.
Don’t jump to any conclusions too quickly. Until you try something new out for yourself, you can’t make any judgments. Demo accounts and low-threshold deposits allow you to do just this with either minimal financial risk or completely free from it. Most importantly, you need to approach this question seriously. Keep in mind, trading isn’t gambling, it is a serious field.

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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Beginners in forex have peculiar needs. It takes approximately 18 months of consistent coaching, mentoring and practice to be able to cross from the realm of being a beginner to the realm of being an intermediate-level trader. This fact was put across by the CEO of a UK-based proprietary trading firm. The question is: what does the beginner do for the 18 months that it will probably take to make that transition? A lot of practice on demo and live accounts as well as a lot of study of all kinds of materials that range from the actual trading process, to trader psychology will have to be done.

Notice that we have mentioned the fact that a lot of trading will have to be done, both on demo and on a live account. So traders will have to understand the kind of platforms that they will need to use in order to get a lot of learning from those platforms. This article describes the forex trading platforms that beginners will need to use to take their skills to the next level.

  • MetaTrader 4 (MT4)

Almost every retail forex brokerage offers the MT4 platform. If you are going into warfare, common sense reasoning dictates that you practice with the same weapon which you will have to use on the warfront, as no one goes into battle with an unproven rifle (or unproven skills for that matter). So if you are going to start off trading any real money, you simply have to start your learning journey with the MT4 platform.

Apart from the fact of practicing with the platform that will be encountered in live trading, the MT4 has certain features which will actually boost the trading skills of the beginner if used properly. Some of these features are as follows:

  • The MT4 charts make for very easy reading and it does not take much to master how to use the various tools and graphical objects on the platform.
  • The terminal window is loaded with tabs that are pure assets: a news bar for news trading as well as the Markets, Code Base and Signals tabs for accessing resources on the MQL4 Community.
  • An easy to use interface
  • Usage of expert advisors.

The MT4 comes as a browser-based version known as the Webtrader. You can also download the MT4 as a generic mobile app on the Google Play store and App Store for iOS-based devices. So for any beginner in forex, the MT4 is the 1 st trading platform that you must acquaint yourself with.

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  • MetaTrader 5 (MT5)

The MT5 is the next level platform in the MetaTrader platform series. While it retains many features of the MT4, there are some enhancements and outright changes that have been included. There is still a lot of confusion as to what Metaquotes really wants to do with the MT4 and MT5. Initially launched as a replacement for the MT4, the MT5 has found it hard to achieve the kind of market penetration that the MT4 got. So Metaquotes seems just content with allowing retail brokers run along with both platforms. Some forex brokers have tried to push the usage of the MT5 by only allowing certain trading assets on the MT5. So it is not surprising that you will see some brokers offering only stock CFDs or cryptocurrencies on the MT5 platforms they offer.

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So once a beginner is through with the MT4, the next best platform to master would be the MT5. The similarities between both platforms will enable easier mastery of the MT5. Just like the MT4, the MT5 has a web-based version and also comes as a generic mobile app which can be downloaded from the Android and Google Play stores.

This platform from Spotware Systems is a trading platform that introduces beginners to ECN trading conditions. It goes hand-in-hand with the cAlgo, which is the platform used to build algorithms used on the cTrader. The cTrader enables the trader to make multiple exits on a forex position, and also allows the viewing of the market depth on a broker’s order books. The beginner can also perform deposit and withdrawal transactions within the platform interface.

The cTrader has a desktop and web-based version. The web-based version loads quite easily, and also has a new feature introduced into the latest version: the “cTrader Copy”. This is the social trading product of cTrader, and allows the beginner to copy the trades of successful traders from within the cTrader platform itself! This is a stunning innovation and has taken the concept of social trading to another level.

cTrader Copy Platform

Even though the interface of the cTrader is a bit more difficult to get around than the MT4, the beginner can easily rearrange the interface to create a customized workspace setting.

  • eToro Social Trading

There is no way we can conclude a discussion on the best forex trading platforms for beginners without mentioning a social trading platform. eToro’s social trading platform happens to be the one best suited for beginners. Its simplicity, ease of use, light nature (it is web-based) and provision of Leader selection metrics that are easy to use, makes this the go-to social trading platform for beginners.

Beginners can select assets to make up a watchlist, and they also get access to a well-arranged format of selection of Leaders whose trades can be copied. Of particular importance is the Risk Score, which is probably the most important metric that should be considered by beginners when selecting a Leader. The Risk Scoring system of eToro is one of the best out there. It shows in clear figures and in graphical form, how conservative or how risky a Leader’s traders are.

For beginners who want to start profiting from forex even as they continue to study the market, eToro’s social trading platform affords them such an opportunity.

Conclusion

The four platforms discussed above are the best forex trading platforms for beginners, and were compiled as a result of the writer’s 14-year experience in the forex market.

Ten “Errors” of a Newcomer in Trading?

Introduction

A newcomer in trading is told over and over again: “trend is your friend, don’t you move against the trend” or “place your stop orders as short as possible, but allow your profit to grow” (see, for instance, [1]). There seems not to be any room for doubt of validity of these statements, especially where this validity is demonstratively proved by many researches (see, for example, [2, pp. 35-40]). Who would mind to place a position “by trend” and gain profits?! But what if we have made a mistake and it has turned out to be “non-trend”? Then the initial statements begin to be developed: to reduce risks, it is necessary to utilize hedging since we can be mistaken in defining the trend or in forecasting random change in prices at a market with great volatility, etc. It means we should take some measures – a danger foreseen is half avoided – in case prices goes in a direction we didn’t foreseen.

Thus, we have to consider price movements to be of random nature. So all attempts to act “as taught” do not guarantee positive results. Otherwise, why do those “errors of newcomers in trading” occur? They are newcomers, so they did not have time to forget the copy-book maxims, which have been presented as practically the “Ten Commandments”.

The author by no means wants to upbraid my esteemed colleague Collector. He conscientiously gave in his article [1] a brief description of well-known, recognized by many people and often repeated statements.The ideas are so widely spread because many press towards getting positive results being at the market with only one open position. It means they think it is necessary to close a position before opening a new one. I would compare this to fishing with one single rod – a nice recreational activity for amateurs, but professionals normally use quite different hooks and lines. When the matter concerns a trading system, it is better not to limit the analysis by one single order. The possibility to use a number of orders opened and closed both consecutively and simultaneously according to the situation for positions already opened together with usual alerts should, in the author’s opinion, be immediately considered as the basic opportunity to adapt oneself to the price behavior, as the basic “range of discretion” of the trading system developer, not only as an instrument of saving.

Ten “Errors” of a Newcomer in Trading?

Suppose we are “at minus” with a long position. According to the accepted rules, we should close it as soon as possible – “make your losses smallest”. But, I say, we have just decided to buy, it means we were sure that the price would go up – for example, a “checked” oscillator had drawn divergence in the oversold zone. Why now, when the price is lower and the buying is more than preferable, should we exit the market? It is more logical to enter in the same direction in order to reinforce the long position. This, at least, looks more consequent. Now the total positive result will be the total plus on two positions, not one by one. The author sometimes opens the third position in such cases, but a short one. Then the total result depends on three orders.

It is control over a finite collection of orders (including rules of opening, closing, choosing a volume, modifying the StopLoss and TakeProfit levels in time regarding price changes and other conditions) that, in general, must form the basis of a trading system. Limitation of the amount of orders by one, two or three is a particular case for this general approach.

Thus, nobody minds following the trend. The matter is: How can we recognize it properly and on time? We may say that this is “to be or not to be?” of the most trading systems known.

If Bollinger bands are compared at different averaging periods, it is easy to see that they are broader for longer periods (se Figure below: the smaller period is 70 minutes, the larger one is 370 minutes). Dispersion on a larger period is contributed by that what is mean value on a smaller period.

The mean line (moving average) when shifted back by a half of the selected period can be considered the trendline (a posteriori). Assuming that we know a priori how that next value of the short-period average will change, the random price changing can be considered to have dispersion as on the smaller time frame, but determined changing mean value (drift, trend). Looking at the obviously nonstationary process of price changing (short period is equal to the bar length), everybody ‘sees’ (just because everybody wants to see!) the sum of the random process (characterized by dispersion on a short interval, visually within the range – by the difference between high and low, i.e., by a rather small value) and an unknown, but nonrandom, a predefined process (trend) with a significantly larger range. This creates the illusion of possibility and the mass wish to guess the trend direction in the nearest future. We ‘see’ objects of technical analysis in the price chart on time in the same way as we do see animals or things looking at clouds. We see only the things we want and ready to see – this is how our perception works.

Statistics knows all. It states that, in average, the probability to gues properly approaches to 0.5, also for very successful traders. But the latter ones don’t earn their profits due to guessing. they do it due to their experiences, ability to control an open position, hadging, portfolio, etc., as well as due to their luck – just read their interviews. Would not it be easier for a beginner to refuse those attempts and just recognize that the process is fully random and practically stationary? What will it yield for us?

First, it will be clear that any deviation from the average will most probably result in returning to the initial state and, therefore, one should not be afraid of placing orders against the trend. There is no need, either, to be afraid of losing with one open position or to be in a hurry to close it.

Second, Forex trading will become a stabilizing factor for the world economy – trading against the trend will create a negative feedback and considerably reduce the exchange rate fluctuations. By the way, the economy itself is known to have such a self-regulation – the growing exchange rate will raise the prices of exporting and stimulate importing which brings the rate to lower values, and so on. Sorry for possible oversimplifying (and for tautology). There is no need to overestimate the situation and be afraid that the rate will be fixed if everybody starts trading against the trend – this is a very distant prospect and, which is the most important, there are other (fundamental) factors that influence prices (this is when the fundamental analysis starts working!).

Third, ten “errors” of a newcomer in trading described in [1] turn not to be errors at all, but proper steps. Let us look through them one by one [1].

  1. Trading when market has just opened

Since we have given up all hope to guess the trend direction, there is no need to wait for a proper moment – we should enter the market as soon as it is feasible. It would also make sense to open two positions of the same volume, but differently directed – a short one and a long one. One of them will gain profits earlier, another one can do it later, when the price returns and goes a profitable direction. At that, at the moment of opening and until either of the two positions is closed, the trade can be 100% hedged, the risk approaches to zero (we can only lose on commission, if any, on spread, and on the difference between the swaps of long and short positions provided it takes more than a day until we close them).

Undue hurry in taking profit

It is never too early to take the profit! We will not make our situation worse by this. If we have fixed the profit in, for example, a long position and the price has decreased by a value exceeding the spread+commission, we can buy again – we will be able to double the profit taken on the same segment, but we surely won’t lose the profit fixed before! For example, we bought at 1.2300, closed at 1.2340; then the price fell to 1.2320 – buy. If the price goes upagain, we will earn again in the range between 1. 2320 and 1.2340. If we had not fixed the profit at 1.2340, we would have at 1.2320 just twenty unclear pips instead of forty appreciable ones.

Adding lots in a losing position

… is sometimes just necessary if a losing position is a result of deviation from mean, i.e., the probability of return to the mean increased. Lots should be added to a posing position, and the further the price goes in a “wrong way”, the more lots should be added.

Closing positions starting with the best one

This issue has much in common with issue 2. It is better to close profitable positions, not losing ones – the latter ones can become profitable if we don’t close them now!

This feeling does not occur if one does not close losing positions or closes them together with the profitable ones, obtaining a total positive result as it was done in a trading system [4], the test results of which are given at the end of this present article. Besides, only humans can feel revenge. Having created an automated trading system, we will protect ourselves against emotional steps.

The most preferable positions

When adding lots to a losing position, the latest “addition” will, of course, be the most preferable. If the price goes on falling (we are now speaking about a long position), we add again. But it is the last “adding” that must give us the total plus – it will be in the very bottom, at the very beginning of a turn.

Trading by the principle of ‘bought for ever’

Trading by such principle is possible for two reasons. First, as I have already noticed, one should not be in a hurry to close a losing position if even it is very “old” – one should just wait until better time comes (see Clauses 1 and 4). Second, one can earn using swaps – 350% per annum – which is not bad, as well. [3:356]

Closing of a profitable strategic position on the first day

Here we repeat Clause 2 – it is never too early to close a profitable position.

Closing a position when alerted to open an opposite position

Highly respected Collector in his article [1] does not exclude such a possibility. The author of this present article does not consider this to be an error – it’s just an element of a trading system.

In my opinion, there are no traders without doubts. George Soros said once (rephrasing the Napoleon’s well-knwon saying): “One jumps into the market, then figures out what to do next”. The idea is ok but the first part – “close all positions”. I would rephrase it as follows: Let your PC to manage them and go for a walk.

So, the “Ten Commandments” postulated in [1] or anywhere else by anybody should not be considered as the ultimate truth or a cure-all solution against losses. At present, there is only one way to make fewer mistakes for a beginning or an advanced trader – model his or her own trading systems on his or her PC and check them on historical data – this does not guarantee faultless operations, but arms with accurate computation, not with implicit faith.

Explanation of Trading Strategy

However, it would be reasonable to check the trading strategy based on the proposed approach – “no nightingales live on fairytales!”, we are lucky to have all those wonderful tools in MT4. To check it excluding influences of any additional factors (selection of entering time and leaving by alerts), we will not use alerts at all in the Expert Advisor [4] – we will do without “to be or not to be”. We will open two opposite orders at the same time to be executed instantly, i.e., we make mistakes #1 and #7.

If one of them touches the TakeProfit level, open it again after the profit has been fixed, i.e., we make “mistakes” ## 2, 4 and 8 one by on.

The second, losing order will be strengthened with doubled volume after the price has changed at a certain interval, then – after the same interval – strengthen it again, and so on until it reaches the preset profit level and we close all order in the same direction – make “mistakes” ##3 and 6 in succession.

We do all this permanently making “mistake” #10. The only “mistake” of those listed above that we have not made yet is “mistake” #9, but it was not a real “mistake” from the very beginning. We protected ourselves from “mistake” #5 having given control to our PC. In arrays M_ob and M_os, the current information about open positions is stored:

There can be a certain amount of intervals moving against the trend, so one has to have a sufficient deposit (in the example above – not less than $50000). However, the system works at smaller initial deposits, only the interval of sl should be greater. If the deposit is $1000, the interval should be 300, the profit will be a bit smaller, as well, in this case.

Test Results

Symbol USDCHF (Swiss Franc vs US Dollar)
Timeframe 1 Minute (M1) 2006.02.16 18:06 – 2006.09.27 18:02
Model Open prices only (fastest method to analyze the bar just completed)
Inputs tp=65; sl=41;
Bars in history 200061 Ticks modelled 400022 Modelling quality n/a
Initial deposit 50000.00
Net profit 168959.39 Gross profit 204777.37 Gross loss -35817.98
Profit factor 5.72 Expected payoff 413.10
Absolute drawdown 0.00 Maximal drawdown 5602.61 (3.41%) Relative drawdown 4.56% (2611.85)
Total trades 409 Short positions (won %) 205 (59.51%) Long positions (won %) 204 (61.27%)
Profit trades (% of total) 247 (60.39%) Loss trades (% of total) 162 (39.61%)
Largest profit trade 18874.04 loss trade -1461.09
Average profit trade 829.06 loss trade -221.10
Maximum consecutive wins (profit in money) 14 (6950.34) consecutive losses (loss in money) 7 (-5602.61)
Maximal consecutive profit (count of wins) 25476.79 (8) consecutive loss (count of losses) -5602.61 (7)
Average consecutive wins 4 consecutive losses 3

# Time Type Order Lots Price S / L T / P Profit Balance
1 2006.02.16 19:51 buy 1 0.10 1.3120 0.0000 1.3210
2 2006.02.16 19:52 sell 2 0.10 1.3115 0.0000 1.3025
3 2006.02.17 14:06 sell 3 0.20 1.3158 0.0000 1.3068
4 2006.02.20 04:21 t/p 3 0.20 1.3068 0.0000 1.3068 135.19 50135.19
5 2006.02.20 04:21 buy 4 0.20 1.3073 0.0000 1.3163
6 2006.02.23 16:15 close 2 0.10 1.3028 0.0000 1.3025 58.02 50193.21
7 2006.02.23 16:15 buy 5 0.40 1.3028 0.0000 1.3118
8 2006.02.23 16:16 sell 6 0.10 1.3038 0.0000 1.2948
9 2006.02.23 16:55 sell 7 0.20 1.3081 0.0000 1.2991
10 2006.02.24 10:14 close 1 0.10 1.3114 0.0000 1.3210 3.84 50197.05
11 2006.02.24 10:14 close 4 0.20 1.3114 0.0000 1.3163 75.17 50272.22
12 2006.02.24 10:14 close 5 0.40 1.3114 0.0000 1.3118 266.53 50538.75
13 2006.02.24 10:15 buy 8 0.10 1.3110 0.0000 1.3200
14 2006.02.24 10:36 sell 9 0.40 1.3123 0.0000 1.3033
15 2006.02.24 17:58 sell 10 0.80 1.3167 0.0000 1.3077
16 2006.02.27 01:20 t/p 8 0.10 1.3200 0.0000 1.3200 69.22 50607.97
17 2006.02.27 01:20 buy 11 0.10 1.3205 0.0000 1.3295
18 2006.02.27 01:22 sell 12 1.60 1.3211 0.0000 1.3121
19 2006.02.28 12:47 buy 13 0.20 1.3163 0.0000 1.3253
20 2006.02.28 17:24 close 6 0.10 1.3123 0.0000 1.2948 -68.52 50539.45
21 2006.02.28 17:24 close 7 0.20 1.3123 0.0000 1.2991 -71.52 50467.93
22 2006.02.28 17:24 close 9 0.40 1.3123 0.0000 1.3033 -10.01 50457.92
23 2006.02.28 17:24 close 10 0.80 1.3123 0.0000 1.3077 248.21 50706.13
24 2006.02.28 17:24 close 12 1.60 1.3123 0.0000 1.3121 1052.91 51759.04
25 2006.02.28 17:25 buy 14 0.40 1.3113 0.0000 1.3203
26 2006.02.28 17:26 sell 15 0.10 1.3111 0.0000 1.3021
27 2006.03.01 15:07 buy 16 0.80 1.3064 0.0000 1.3154
28 2006.03.01 18:52 close 11 0.10 1.3150 0.0000 1.3295 -39.72 51719.31
29 2006.03.01 18:52 close 13 0.20 1.3150 0.0000 1.3253 -17.66 51701.65
30 2006.03.01 18:52 close 14 0.40 1.3150 0.0000 1.3203 116.76 51818.41
31 2006.03.01 18:52 close 16 0.80 1.3150 0.0000 1.3154 523.19 52341.60
32 2006.03.01 18:53 buy 17 0.10 1.3162 0.0000 1.3252

As you can see, the test result confirms the feasability of “refutation of postulates”.

The author of this present article having started trading practices in 2002 and still considering himself to be a beginner in trading is sure of only two postulations (axioms, truths, as you prefer) on FOREX:

  • the market is not bound to do anything for anybody;
  • the price is not bound to move as predicted whoever made this prediction.
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