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There are some people who claim that forex futures contracts are “better” than trading the spot forex market. Let me break down these arguments. They claim that futures contracts are traded on a centralized exchange vs spot forex which is not on a centralized exchange.  Then they talk about how with forex different brokers can …

The billionaire hedge fund manager, Paul Tudor Jones, gives a speech to ninth graders about failures and talks about examples from his own life.  Failure was a key element is his life’s journey.  He went from getting fired at one of his jobs to becoming a highly successful trader! Read the speech to find out …

Despite everyone’s best efforts at formulating a great trading system, following it and controlling your emotions, the inevitable losing period can come.  It is important to know the various strategies you can use to help handle the losing period.  It is also helpful to know the variables you can tweak to determine which style suits …

Wall Street Journal has an article out called: Model-Driven Strategies Burn Currency Traders The article goes to explain how some of these quantitative models are failing traders and their hedge funds in these market conditions. One model driven hedge fund lost 4% in October.  Another model fund was down 6% for the year.  Yet another …

Originally Posted at forexfactory on August 23, 2011: I wouldn’t really worry too much about a forex trading platform or broker stealing your ideas. In order for them to do that, they would need to first identify that your trade signals are worth following. They need to determine whether your system is truly good or …

A lot of your trading system and position sizing will depend on what your win rate is and what your reward to risk ratio is. Pretty simple statistics eh? Steve Cohen, the billionaire hedge fund manager uses simple statistics as well.  In the CNBC article: How SAC Capital Works Now, Cohen says: The article then …

Originally posted at forexfactory on August 21, 2011: Yes, there is a methodology to calculate the probability of breakouts and sustainable breakouts. You cannot do it every single time. And you cannot get an accurate percentage. If more of falls into a range. And that percentage probability can constantly change. What is the methodology? Instead …