If You Are a Bad Forex Trader, Just Do The Opposite
by Trader Rich
I can’t tell you how many times I’ve heard people say this, "If you’re a losing trader, just do the opposite of what you were thinking and you’ll be a winner." I can’t begin to say what a misconception I think this is. Don’t you think that if this were true, all the losers would be doing it? What if your target price is unrealistic or your stop is too tight? What if the market is trading sideways? It wouldn’t matter what direction you traded, you would lose either way.
Anyway, I thought I’d post an interesting email I received from a guy who is looking for bad traders to help him make money. I asked him what the incentive for the "bad" traders would be to send him their every trading move. I don’t think the guy is on the wrong track. It might be beneficial for anyone’s success to study the behavior of losing traders. The toughest thing he’s going to encounter is finding traders who will admit they’re bad traders and would provide information to someone who wants to profit off of their losing.
I found your site as I was looking for someone to help me implement my new system. I have won the FXCM king of the mini as well as placed third in interbankfx contest (on different months).
I do trade well…however I thought of a system that is essentially perfect. As you are aware about 95% of new traders lose all their money in the first 30 to 60 days of trading forex. That last 5% is left for people breaking even, making a small profit and those chosen few that can live off forex.
Point being this: New traders are perfectly bad traders. Their emotions take over, they get out at the wrong time…get in at the wrong time, take profit too early, let bad trades keep running, over margin etc etc etc.
Therefore if one does the EXACT opposite of a new trader then one would have about a 95% chance to double or more their money every 30 – 60 days. Essentially $100 could become almost 1 million in one year and over 2.6 million in 18 months.
Where I need help is finding new traders that will notify me the second they enter a trade, which direction, currency, leverage, stop, take profit, and of course if they get out early for profit or loss I need to know basically as it happens.
I would trade the opposite with two exceptions. Only trading the small pip spread currencies and perhaps only trading with the interest rate – that would help to offset the small pip spread. As well of course I would use percentage for leverage. (If they have $1000 in their account and trade $10 pip then I would trade $100 pip if I had $10 000 in my account … or $1000 pip if I had $100 000 etc.)
There will be times I would also have to accommodate the leverage size to make sure there is no margin call if the rookie trade actually hits their profit. I only want to be taken out of trades when the rookie trader closes a trade (or they are margin called out).
If this backward system makes sense to you please let me know. Perhaps through your website you have access to these perfectly bad traders.