Forex Trading Expert Advisors (EA or automated trading system) and Custom Indicators (CI) for MetaTrader Platform.

Trading is simply predicting. We all predict the moves and make trades and stats show that majority loses and few people earn money. Just watch trading contests, 600-700 participants and around 130-130 people were able to increase their equity. İn real trading accounts there are more losers and less winners. Did all the losing traders made false prediction? Partly they are. Personal experience and observation showed that mostly do correct prediction of support and resistance, trends and patterns, also beginning of the price move. Let’s take an example of last GBPUSD move from 14 august till 4 September. And make some simple analyse and prediction.

We decide that because of natural disaster and Korea conflict will push GBP up for some time. But because of rate hikes, also political situation in UK GBP is under pressure and will fall soon.

You can see we have trend we have support and resistance zones. And view about price move. We make a buy here and wait. What happens? Cool! Price moves up.

Great! It moves as we predicted. We close our buy position and start selling. But price moves up and hits stop loss order. We sell again and again. We believe market shows fake breakout or anomaly or we just believe that market can’t behave like that and should turn back to our direction. Of course during that time we just lose and lose.

Reason is that most of the people think in straight way. We make a scenario, build a track and follow it. We can see it in daily life. Most of the people sit in traffic jam while few people use alternative ways. We prefer to do think as we used to do. Also our ego and anticipating of feeling to be wrong stops us to think in alternatives.
Traders should keep in mind that market does not follow our predictions and scenarios. We have to follow market. It doesn’t mean that we shouldn’t make predictions. We know how market behaves on support and resistances levels, after certain patterns. Lucky we don’t have just two options. Price acts in according to patterns or in other directions. It bounces down from resistance level or breaks it and moves higher. We have to train our brain to think in alternatives and act properly.

So we predict price to bounce down from resistance level. Great, but what we will do if it breaks above? Keep selling? Or start buy position? Or just wait for bouncing down from next resistance level? If we want to keep being profitable and increase our equity then We have to predict in alternatives and be ready to react and benefit from each move.

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