Your Questions About Successful Trading System

Carol asks…

Which political system you think is the best?

I need help with my homework, i have to write which political system I think is the best out of these ones:
Conservative Democracy, Liberal Democracy, Fascism, Monarchy, or Social Democracy.
I don’t really know anything about it, so can you guys please help me.

It has to be answered in eight sentences with this structure:
-Topic sentence(statement)
-First reason
-Evidence(specific example)
-Second reason
-Evidence(specific example)
-Third reason
-Evidence(specific example)
-Concluding sentence(statement)

Thank You.

John answers:

Classical liberalism (often called conservative or libertarian in America), not progressive fake ‘liberalism’! The difference is individualism vs collectivism/statism. Night and Day.
Http://en.wikipedia.org/wiki/Classical_liberalism

Proof? Look at what we use everyday and our standard vs the living conditions and quality of life for humans before that. It speaks for itself. Constitution is to protect individual rights from a dictator, the majority, a king, or anyone else. Tthere is no smaller minority than the individual. Those who deny individual rights cannot be defenders of minorities.

Topic:
Material standard of living

Reason:
Freedom to trade (capitalism) allowed individuals the freedom to trade ideas, products, services, labor etc without coercion or force (via govt). It is done through mutual exchange to mutual gain (otherwise the transaction would not have taken place).

As Milton Friedman said “The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another. “

The freedom to trade can make enemies into people who will tolerate eachother because of mutually beneficial trade. It is the promoter of peace and individual rights.

It also gives you and me democratic freedom to vote in the marketplace everyday:

“The real bosses in the capitalist system of market economy are the consumers. They by their buying and by their abstention from buying decide who should own the capital and run the plants. They determine what should be produced and in what quantity and quality. Their attitudes result either in profit or in loss for the enterpriser. They make poor men rich and rich men poor. They are no easy bosses.” Ludwig von Mises

Competition prevents corruption, squander, monopolies (like government or government allowed privileges to private business), and people only produce what we want for the best price.

Evidence:
Name anything you use or look at and think about how it came about. It is the result of peaceful trade between two to many parties before the end user acquires it.

“How you make it in this world, for the most part, depends more on what you do as opposed to whether people like or dislike you. In order to produce a successful life, one must find ways to please his fellow man. That is, find out what goods and services his fellow man values, and is willing to pay for, and then acquire the necessary skills and education to provide it.” – Dr. Walter E. Williams

Standards continue to rise: (the numbers speak for themselves)
http://www.coordinationproblem.org/2009/11/the-economic-condition-of-poor-americans-and-the-rest-of-us-continues-to-improve.html

Upwardly mobile America:

“The Census Bureau family income data indicate that in 1967 one in 20 families had an income of $100,000 or more (in today’s dollars). In 2005 one in six families did. There are three times as many families earning more than $75,000 a year today than there were in 1967.”

“The Federal Reserve Bank of Dallas looked at the same income mobility data over the time period 1975 to 1991. It found that 95 percent of poor households in 1975 were not poor by 1991. Three out of four of the “near poor” (the bottom 20 to 40 percent in family income) climbed into the middle class or higher over this period.”
http://www.american.com/archive/2008/september-october-magazine/upwardly-mobile-america

Even with a large income gap, the poor in America have a higher standard of living than any country with a more egalitarian gap. If income equality was good, then we would assume North Korea, Venezuela, and others would be better off, but they are not.

Human behavior in essence goes something like this:

“You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is the beginning of the end of any nation. You cannot multiply wealth by dividing it.” -Adrian Rogers

Richard asks…

Where can I get good signals for Sterling in London market?

I am interested to go into intra-day trading of sterling.

John answers:

Sterling currency trading is my favourite, I have never been successful in other currencies as much as Sterling even when I was working in the bank.

Recently, I saw this London Forex Rush program which gives indicators for the Sterling London intra-day trading.

Tried it out and I’m quite impressed but the usefulness. I only use it as a guide at the moment. But it’s created for you to use as a complete system.

Lisa asks…

Advice from anyone who has worked with or knows about Forex?

I have watched some tutorials on the Forex site. But I am getting nervous because of all the risk I keep reading online concerning Forex and currency exchange. I will continue watching the videos and take notes as well as set up a practice account. Does anyone have any advice on the subject? What is the best way to start, can you be successful, do you lose more often than you gain? Anything is appreciated.

John answers:

Your most important mission is to set up a practice account and make a zillion mistakes over whatever period of time this process may take you (generally speaking expect it to be as long as a year or even more, but of course it could be different)

You would greatly benefit from keeping a careful record of everything pertaining to the trades you’re making. What you want to know about your trading is primarily covered by asking yourself this question: Why did I enter that trade? This question will become increasingly easier to answer and “second nature” to you ONLY after you gain experience; that’s why this process is so important.

The truth is that you should strive to work with and thoroughly understand the workings of timeframes, chart patterns, support/resistance levels, identifying market trends/direction, entry/exit points, money management, using of leverage, fundamentals effect on the market, etc, to really be equipped enough to trade profitably. Add to that the vital importance of learning to control your emotions as to avoid non-objective/knee-jerk reactive trading.

Ideally and through a process of elimination, you should arrive to a personal system/strategy that proves successful over time. Regardless of what you hear from the naysayers, this is doable, but as you’re probably tired of hearing this is certainly NOT EASY… It takes time and dedicated effort like ANYTHING worth accomplishing in life. You will be tested and will be tempted to quit from being frustrated, discouraged, and/or even worse, from excusing your lack of profits by joining the club of those who claim the whole thing is just a scam. (Yes, there are marketeer scammers all over the net who prowl on the naive and uninformed, but be assured that the Forex market is 100% legitimate. You can find successful -professional and private- documented trading records all over the net too.)

Last but not least, it is not true at all that you’ll need special “super” computers or equipment to “compete with the pros” as some misguided people here constantly post. A solid platform provided by a reputable broker as well as access to fundamental analysis/quality data is all you’ll ever need. But I insist and can’t stress enough the fact that knowledge and experience are your best allies and where your time will be best invested. Without these ingredients, your chances at arriving at a working system/strategy are basically null.

Hope that helps and Best of Luck.

Thomas asks…

What are your opinions on the Pistons offseason?

Who will be the coach, who will they trade, who will they pick up?

John answers:

Who will be the coach?
Well, I read today that Joe Dumars is likely to make a decision sometime next week. He has interviewed Michael Curry (who is the frontrunner for the job right now), Terry Porter, Avery Johnson, and there is talk now that the Pistons want to talk to Atlanta head coach and former Piston assistant Mike Woodson about the job. So it’s up in the air right now.

Who will they trade?
The most likely players to go are Rasheed Wallace and Chauncey Billups. Rasheed because of his contract and his play in the postaseason the last two year – and Chauncey because he has a lot of trade value and he is also aging. Tayshaun Prince is somewhere in between….if Joe gets a great offer for him he will not pass it up but Tay is not his first choice on players to trade. I personally would NOT trade Tayshaun.

Who Will They Pick Up?
Um…well they need youngblood. If they trade Rasheed they should get a big man because of the hole he’ll leave at Center. I don’t really want him on the Pistons but expect to hear Jermaine O’neal’s name out there. I also think they need one more shooter to back up Rip when Stuckey’s playing pointguard. Washington shooting guard Roger Mason had a great year and would be a good pick up.

One thing I should say is that the players they move and pickup will be determined by who ends up being the Coach. For the coach to be successful he may need certain players that work with his system.

Judging by what I’ve read and heard that seems to be what’s going on so far.

Nancy asks…

Does someone knows how to trade on FOREX and is it even possible to make profit on FX?

Does someone knows how to trade on FOREX and is it even possible to make profit on FX..
I m trying to trade for more than a year and still no profit. I m using ADX and Parrabolic SAR.

John answers:

Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words “Forex” and “lose” to see this is the consensus.

Forex is similar to what we call a “zero sum” game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. The net winnings of everyone combined equals zero. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the “bets” in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.

Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.

There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.

Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: “Go to Forexcrap,com/q2347.” The “q2347” is a signal to the Forexcrap site that you are being referred to them by “q2347.” If they sell something to you, “q2347” gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.

I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.

Read the warnings in the links below:

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