How Profitable Are Candlestick Strategies in Currency Trading?

November 20, 2007 by Trader Rich 

Candlestick charts
In a couple of words…. they could be.

http://www.dailyfx.com/story/topheadline/How_Profitable_Are_Candlestick_Strategies_1195160706372.html 

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3 Responses to “How Profitable Are Candlestick Strategies in Currency Trading?”

  1. Forex Trader on November 20th, 2007 8:50 pm

    Hey Rich,

    Nice to see you back. I have been in your shoes and don\’t want to see you go. I have lost about 90% of my account a while ago. The main problem in trading is your EGO, the problem is inside you, not outside. Whatever system you use, it won\’t let you take correct decisions. I have tried everything - trend trading, Elliot Waves, they may seem to work when you backtest them but when it comes to real life you just take incorrect decisions because of your EGO. Many people advise to learn to control your emotions but that is plain nonsense, it is IMPOSSIBLE to control emotions.

    The only way to not let ego play role in decision taking is to have completely MECHANICAL system. I am using simple breakout system for EUR/USD and it turns it is much more efficient than myself. The benefit of mechanical system is that you do NOT have to take decisions. As soon as I find a programmer we will write a program so not to spend sleepless nights in front of computer. Just my 2cents.

  2. Forex Trader on November 21st, 2007 4:47 pm

    I do not believe in mechanical systems. What worked in the past might not be the thing to work in the future. Markets do change and that fully automated system could ruin you overnight. If mechanical trading systems were really the way to make money, then we woul not have any people participating in the markets, just computers playing “star wars” games against each other. I believe that only the human brain is set to learn from mistakes, be aware of the current situation and adjust accordingly. You do need to have a basic set of rules like cutting lossess and letting profits run, but other than that you don’t need a computer.

  3. Tom on November 22nd, 2007 1:32 am

    Candlestick patterns can be very powerful if you use them correctly. Nice to see you are back trading Rick and hope you will succeed.

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