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  1. #11
    Legendry Member Michael Hodges's Avatar
    exactly, Okane is right, binary options are not actual market positions so have no impact on direction. but you are also right, if we were trading stocks, futures, equity options etc we could move the market by all trading at the same time.

  2. #12
    Junior Member Proteso's Avatar
    Oh ty all far reply, ok on the 2 you are totally right, BO can affect nothing, and even in forex millions are needed for a price move.

    Quote Originally Posted by Okane View Post
    1. The market is nothing more than people reacting to supply and demand.
    So yes, if more people buy apples, then apples will become more expensive thus supply decreases.
    Eventually there will be a bigger supply and therefore price falls back again so the buying strategy won't be working
    anymore.
    Ok, this is it, i have misunderstanded the sentence i had read; i was thinking that a strategy (let's say SBS) can stay profitable only for a few years because (for unknown reasons) the market will assimilate it in the long run.

    I can't remember the source of this sentece, but it's ok ty for the explanation

  3. #13
    Legendry Member Michael Hodges's Avatar
    So, back to your original question. Yes, it is possible for a strategy to slowly stop working. As the market participants begin to expect certain things to happen contrarians step in and begin to trade the swings and add volatility. If there is weakness in the market this can reverse a bull trend, or lead to a correction and then find a different type of strategy. but usually I just stick to my indicators and use them to analyze what is happening from day to day,and not following the crowd.

  4. #14
    Moderator Kolyo's Avatar
    Quote Originally Posted by Proteso View Post
    Oh ty all far reply, ok on the 2 you are totally right, BO can affect nothing, and even in forex millions are needed for a price move.


    Ok, this is it, i have misunderstanded the sentence i had read; i was thinking that a strategy (let's say SBS) can stay profitable only for a few years because (for unknown reasons) the market will assimilate it in the long run.

    I can't remember the source of this sentece, but it's ok ty for the explanation
    I also think that this is not exactly the case. There are traders thinking that their strategy will stop working because too many traders starting to exploit it and finally the edge disappear. I don’t think there is something like constant edge, everything is dynamic and when you achieve good results with a particular strategy it is because the market conditions are favorable, when they change the results can also decline. We need to stay always one step ahead of the curve!
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  5. #15
    Junior Member Proteso's Avatar
    I have thinked about it and the backstest of a strategy would show a decresing profitability if a thing such as "strategy obsolescence" really exist: i'm not going backtest every strategy for years, but i thing someone would have recognized such a thing, i'm gonna stick to my indicators too!

  6. #16
    Moderator Kolyo's Avatar
    There are ways to manage your emotions when trading, but no way to avoid them. We as humans can not deprive ourselves from emotions, we only can take control of them. To be able to take control of our emotions properly we need first – to anticipate the prevailing emotion, second – to acknowledge that emotion and third to analyze and find the reasons behind that emotion. Only going through all these three steps will help us to avoid entering into losing streaks or bad decisions.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

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  8. #17
    Moderator Kolyo's Avatar
    Quote Originally Posted by Proteso View Post
    I have thinked about it and the backstest of a strategy would show a decresing profitability if a thing such as "strategy obsolescence" really exist: i'm not going backtest every strategy for years, but i thing someone would have recognized such a thing, i'm gonna stick to my indicators too!
    You don’t have to test every single strategy out there. You only need to find one good strategy and master it, all its details and tweaks, making it your own strategy and understand when to switch it on and off depending on the market conditions. I am not a big fan of mechanical trading, but it is good way to start learning and trading. Later on you can add additional layers of discretion when you know how to do things properly.
    "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder

  9. #18
    Legendry Member Michael Hodges's Avatar
    Yeah, do like Kolyo says, as a newbie testing a bunch of different strategies is going to result in a lot of different ways to lose money, find one or two you like and work on those till you master them....

  10. #19
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Yeah, do like Kolyo says, as a newbie testing a bunch of different strategies is going to result in a lot of different ways to lose money, find one or two you like and work on those till you master them....
    don't forget, Jack of all trades is master of none.....

  11. #20
    Junior Member bluedollar's Avatar
    emotion can cause you to lose alot of money.i was one of the people who let they emotion take control.i start trading real money on thursday,yes it was when FOMC and lost alot of money but the thing is just by watching the chart i knew that i should stay away from the market but noo i have to trade with real money.my account from 100$ to 30$ in just a day.their this feeling of satisfactiory when i win in demo and i want to experience it with real trading.i cannot stress this enough that emotion make you do stupid thing.sorry that this become a rant.

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