If your friend does not have much experience in agriculture, will tell you what is going to feed themselves with a quarter of an acre plot, you decide that he will starve. We all know how much you can squeeze out of such allotment. But in the field of speculation adults let their imaginations blossom.

    Once the fan gets a few blows and receives a request for dovnesenii money, he instead became timid, assertive, and begins to produce some scary ideas about the market. Losers sell, buy or stay away, based on their fantasies. They are like children who are afraid to walk through the graveyard at night or look under the bed, because there could be ghosts. Unstructured market environment makes it easy to produce fantasy.


 Fantasies affect our behavior even when we are not aware of their existence. A successful player must find out their fantasies and get rid of them.

 The Myth of the kitchen, or a little about the technology of brokerage firms

The reality is that there are three methods of dealing center.


    1) None of the client's position is not obstructed by an external contractor. In this case, dealing center is interested in losing a client because His winnings dealing center will have to pay out of pocket. Dealing Center, working on such technology, called the "kitchen". Usually in the early years of her too few customers to collect items from their standard for interbank forex Lot (0.5 million) and to derive an aggregate client position on the external contractor. For the "young" companies is a risk that one customer will win a large sum, and the company did not have enough money to pay him and other clients. To reduce the likelihood of such an outcome in the work of "young" dealing centers is often a desire to help the client to lose, that adversely affects the reputation of the industry as a whole.


  So it went, that the word "cuisine" became abusive in Russia. In the late 90's, Russia had little dealing centers, and most of them were not enough customers to hedge the client aggregate positions in the foreign counterparty. Therefore, in the late 90's was in the order of things to watch an incorrect attitude dealing center to the client: slipadzh at the closing and other unfair methods of struggle. But as time goes on. Companies established in the 90's, were overgrown with a mass customer. Bad quoting a negative impact on the reputation of the company, so big companies usually do not work against the client. Unethical ways of dealing with customers profess a small, newly formed, dealing centers.

When dealing desk "grow out of short pants, and the number of its customers will exceed several thousand, the company begins to realize that:

• Profit-dealing center of the "kitchen" in the end is approximately equal to the spread, multiplied by the number of transactions, which is directly proportional to the number of clients. The value of the customer base, in turn, depends on the reputation of the dealing center.

• Good reputation and long-term profitable short-term profit gains from working against the client, so the dealing center (even while cooking), transformed into a stage of maturity, ie cease to shift the odds, "to draw the foot", etc.

• the business itself has cost a lot, and the founders of the dealing center do not want to lose it in case of accidental win more clients.

• The average size of the deposit started to increase (positive effect of good reputation) started to appear larger customers, which mainly benefit because the size of their deposit allows to observe the rules of risk management (Money Management), and they tend to be more professionally prepared in terms of trading, etc.

As a result of manual dealing center starts to think about hedge clients' positions, which means that the transition to the second type of technology.


2) Show the total client's position. In this case, the total exceeded the client's position a predetermined value (eg, 5 million), it is displayed on the interbank FOREX. As a result, the company has disappeared motives to work against the client. Business becomes more stable, because big wins clients no longer pose dealing desk on the brink of ruin.

3) Output per customer transaction in the interbank market. In terms of advantages for the customer, this technology does not have any advantage over the second type. Among the disadvantages for the client include: a) a large initial deposit and minimum transaction size, and b) to conclude a transaction takes not a few seconds and a minute or more.
At the time of writing this article from Alpari was over 7.200 real customers, enabling the company to work on technology № 2.
The myth of the impossibility to earn on Forex market
In books write: 90% of people working at the margin of financial markets to lose their money. Unfortunately, this is true. Try to understand the reasons for this. If you try to analyze the work of those 90 percent, then we will see what a loser trader:
• does not know the basics of analysis (technical, fundamental or otherwise). To the question "What is MACD (MACD)», he replied that this Moscow Ring Road.
• does not understand the philosophy of trading. Let me explain by example. As a young technical analyst, I sat down to analyze a fin. tool. Let it be the yen. I looked for a week - indicators show down for the day - down to the four chasovku- down .. for 5 minutes - down. Cool, there is no controversy! I get up down ... the results are grim. Faith in those. analysis completely undermined. Running for a beer ... a lot ... I think I came to the conclusion that it is not those. analysis of the fault, as I am. Day stay for a week and showed that the global trend is downward. A short schedule showed that the trend movement is already underway, and apparently reached its bottom. Ideal moment to sell it would be if: Day stay for a week and indicate downward trend, and four chasovka - the bullish trend (is rolled back), and ending chasovka shows a bullish trend (for example, a bullish divergence).
• does not comply with the rules of money management:
o does not hold at all stops
o expose too short stops. Stop-loss on forex should be no closer than 40-50 pips from the entry point. Closer stops sentenced since entering the market, you surely will not be able to catch the bottom of a very-spike. Error is usually 10-15 pips. Plus 5 pips spread. If we take into account market noise (10-15 pips), we obtain that stops on display at a distance of at least 40-50 pips from the entry point, there is little chance of surviving the position, IMHO.
o do not comply with the ratio of profit / loss = 2 / 1.
o try to lock in profits in 5 pips, but are willing to incur losses of 100 pips or more. In order for this tactic at least not lose, have 20 winning trades (20 Ч 5 pips = 100 pips profit) to make only one loss-making 100 pips. Ie percentage of successful transactions shall be 95.24%. Is beyond the power even Soros. Professional Analyst provides 75-80% of correct predictions.
o etc

• the analysis used by "small" periods. I think that the market is the noise at about 10 pips (received a major order from a bank customer, and it pushing through the course of 5, for example, pips. A few minutes later a course back to the previous level. Plus any indicative differs by a few pips). Take this situation for granted (to prove this is impossible). Then:
o Analysis of minutes and will enable us to catch the movement of 15 pips (for example). Of these, 10 pips will noise. Ie 66%.
o Analysis of 5 minutes and allow to catch the movement of 30 pips. Noise ratio of 33%.
...
o Analysis of hours will catch the movement of 100 pips. Noise ratio of 10%.
o Analyt dnevok will catch 500 pips. Noise of 2%.
Figures contingent, the main thing here printsip.Takim, we in the analysis of small periods of trying to predict the noise, and the analysis of long periods - try to make a forecast of the market. IMHO, the noise is unpredictable. The market is predictable. Therefore it is necessary to analyze long periods.
If you are unable to earn on Forex, carefully and thoughtfully read the above and draw appropriate conclusions. Namely: in order to successfully and profitably operate in the market FOREX, you must have some knowledge, as well as the need to observe certain rules (eg, money management).
The myth of the failure of brokers in brokerage, or why the long transaction is committed when a strong price movement
Of course, the delay may be caused by such factors:
• software or hardware can not cope with the increased tenfold when a strong flow of traffic applications.
• lack of staff - brokers.
But as a rule, brokerage firms, working for several years in this market, have no staff, no technological problems. But delays do occur. Why?
The most common form of work in a large company will be 2nd (see above) - when the external contractor derived aggregate client position. When the market is quiet, the broker when you receive a customer request instantly captures customer transaction, and only then begins to mystify the problem of withdrawal of aggregate client position (if the limit is exceeded) by an external contractor. There's no hurry, the market is calm. The market will give the broker an opportunity to enter a couple of pips better than the client (and then leave for a couple of pips is better).
But in the volatile market for everything is different. Hedge positions in foreign counterpart to immediately, but then the price goes, and the broker will work at a loss. Therefore, the processing of client requests is carried out simultaneously with the withdrawal of exceeding the client's position on the external contractor. Processing time of the application client is naturally increased. But it must be seen as a necessary "cost" for the reliability of the company, pay for that client positions are displayed on an external contractor.
The myth that there was insufficient capital
Many of the losers think they would have success if possessed large means. All losers were ejected from the game by a series of failures, or one, but extremely destructive transaction. Often, after a lover has closed all the positions that are currently unprofitable, the market is reversing and moving in that direction, on which he relied. The loser is ready to beat himself or his broker: "If he had stayed another week, he could earn a small fortune!"
Losers perceived change in the direction of the market as a confirmation of its methods. They earn, hold or save enough money to reopen a modest expense. History repeats itself: the loser of sour cream, then the market is moving in another direction, "proving" that he was right, but too late, the account is empty again. At this point, and the fantasy is born: "If I had a great score, I would have stayed a little longer to win."
Some losers collect money from relatives and friends by showing them the record. It would seem that they confirm that having more money loser would get a big win. But if they get more money, you also lose them, as if the market is laughing at them!
The loser does not lack capital, but from the immature mind. It can destroy a major expense is almost as fast as shallow. He overplays and his money management system is unsatisfactory. He goes on too much risk for any account size. Regardless of how good his system, a sequence of failed trades will certainly throw him out of the game.
Players often ask me how much money you'd have to start the game. They want to be able to survive the recession, a temporary decline in value of their assets. They expect that they will lose a lot of money before anything will work! They remind the engineer, is planning to build several bridges, the doomed collapse, and then build a masterpiece. Can a surgeon expect to kill a few patients, before he becomes an expert to remove the appendix?
Lover would not suggest that he would have lost, as not ready for them. The belief that he had insufficient funds, it is a maneuver to ignore the two bad things: a lack of discipline in the game and the lack of a realistic plan for financial management.
One of the advantages of large bills is that the cost of equipment and services is less in comparison to your capital. He who controls the fund of one million dollars and spent 10,000 dollars on computers and seminars, to earn just 1 percent to compensate for it. Those costs would amount to 50% for a player with a capital of 20,000 dollars.
Myth of the autopilot
Imagine that you are a stranger comes into the garage and trying to sell an automatic system to control your car. Pay only a few hundred dollars for a computer chip, install it in the car and stop wasting time on management, he says. You can take a nap in the driver's seat, while "Smooth rulila" takes you to work. Most likely, you will laugh in the face of such a seller. But will you laugh if he will offer you an automatic system for speculation?
Players who believe in the myth of autopilot, it is believed that the pursuit of wealth can be automated. Some try to develop an automated system themselves games, while others buy it from the experts. People who for years honing their skills lawyer, doctor or businessman, lay out thousands of dollars for canned competence. They are guided by greed, laziness and mathematical illiteracy.
Previously, the system recorded on scraps of paper, but now they usually take the form of copy-protected floppy disks. Some are primitive, and some are very complex and have built-in optimizers and rules of financial management. Many players are looking for the magic that can turn a few pages of computer code in an endless stream of money. Those who pay for the automated gaming system, reminiscent of medieval knights, alchemists who paid for the secret of turning base metals into gold.
Complex human activity does not allow himself to automate. Computer training programs are not replaced teachers, and accounting systems have not caused unemployment among accountants. Most human activities require experience in making decisions, so that machines and programs can help, but do not replace humans.
If you could get a working automatic system, then you could go to Tahiti and spend the rest of life in luxury and bliss, getting a steady stream of checks from your broker. But so far the only ones who have earned on the automated systems are software vendors. They formed a small but colorful cottage industry. If their systems worked, why would they be selling them? They could themselves go to Tahiti and collect checks from the broker! However, each seller is ready to answer. Some say that love programming more than gambling. Others say that selling the system only in order to obtain capital for speculation.
Market changes each time, and replay an automated system. The most stringent rules of yesterday do not work today and will likely not work tomorrow. Competent players can adjust their methods, if it detects alarms. Automatic system is not as adaptable and deletes itself.
Having the autopilot, the airlines pay higher salaries to pilots. They do so because people are able to cope with unforeseen situations. When a liner over the Pacific Ocean is damage to the body, or when the reserved places on Canada ends fuel, only a man can get out of the crisis. On such situations, newspapers, and in both cases, the skilled pilots managed to land their machines, because improvising. No autopilot could not repeat it. To trust their money to the automated system - it's the same thing as trust in life on autopilot. The very first unexpected event will destroy your score.
There is a good gaming system, but for them to supervise and correct their every decision. So you should follow the process, not shifting their responsibility onto the system.