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Trade Against The 90% That Lose Money 10th Nov
Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.
So what are the signals?
Strong Short 66% Retail Longs
Short 60% Retail Longs
Long 60% Retail Shorts
Strong Long 66% Retail Shorts
We are looking for 60%+ (Ideally for best opportunities 66%+) of retail traders to be trading either long or short a currency pair, we then look for opportunities to fade (trade against) this group. For example if 72.99% of traders are long the USD/CHF we look for opportunities to short that pair.
The pairs that we feel offer the highest opportunity for success are described in the Strong Short and Strong Long areas.
What’s New Today? The GBPJPY again edges its way into the short zone, after a day in the Long zone EURGBP is now back in the neutral zone.
Provided by Pivotfarm - Click here to learn more about Technical Confluence.
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so basically what you are saying is: whatever those "retail traders" are doing,we just view at them as a idiot commodity and trade against that group.If they are long,we go short and if they are short,we go long.The main game is to take their money off them, by any means possible.After all,the only people with any experience in the marketplace are Institutional Investors and seasoned professionals.Because after all,who in their right mind would use their own hard-earned cash in a market that is so obviously rigged by HFT Traders and colluding Hedgefunds who are the masters of all markets and the universe..
well,at least that's what this sounds like to me,as one of those 90% dumb retail traders...
"retail traders" trade currency pairs?
But there are no more retail traders to trade against in this market. All that is left are the HFT's and quants.
While I agree with your observations, I don't think you understand the reasons behind them (maybe you do). The Forex, like most so-called markets anymore, exist primarily for the purpose of theft. It's not about finding equilibrium or price discovery, it's about producing the outcome where most gamblers lose. So saying "Retail traders are notoriously wrong" is kind of like saying "most three card Monte players have a hard time following the Queen of Hearts." Both statements misrepresent the very nature of the game.
In either case, the best move is to keep walking.
But for those who can't resist playing, I guess it's useful to know what outcomes will benefit the house most.
I don't trade but enjoyed your article anyhow. The thinking of those who trade is valuable even to those who don't.