Darkstar's Blog

Whats the deal with swap rate? How do they work and why do they exist?

Its easier to think of in terms of debt/equity. When you short usd/jpy you are in effect going into debt with a Japanese bank (borrowing Yen). As with any debt your obligated to pay the prevaling interest rate to cover the lenders risk... Read the rest of entry »

Do all your trades fail?

You’re getting caught out because you lack experience. Every new trader looks at an uptrend and expects it will go forever so they repeatedly buy the tops and sell the bottoms. You need to see several hundred patterns play out before you will begin to see the subtle differences between a continuation pattern and a reversal. My personal recommendation (which I will no doubt catch much grief over) is to try scalping the 1min for a few weeks.

On a 4 hour you may get to see a few dozen patterns a month, the one hour may provide that many in a week. The 1 min will show you 50-100 setups a day. Don't delude yourself that you'll be making any money at it because you won't, but the truth is you won't be making money on the 4 hours either. It's all a matter of how long you want to spend learning...

The 5 Steps to Profitable Trading Success

What do you have to look forward to in your trading career? This is a good general overview. Read the rest of entry »

What is the Best Indicator to Use on 15/30min Charts?

Looking to make some short-term trading profits? Searching for the best indicator? You need to read this! Read the rest of entry »

How Well Do Retail Forex Broker Quotes Compare to Interbank Pricing?

Curious how good the pricing is on your retail forex broker? It's probably better then you think... Read the rest of entry »

The First Order Flow Discussion

After dropping hints about the concept of Order Flow Trading for a few weeks/months, someone finally came out and asked about it. This is the conversation that ensued. Read the rest of entry »

Stocks v. Forex, Why Such a Disparity in Trading Costs?

Why is it that you can get real time charts and data for free and super cool charting softwares like MT4 that in addition to the coolest indicators, allows you to customize AND manually back test charts to find out how your systems work out? Read the rest of entry »

These Are Not the Pips Your Looking For

The funnies thing I ever saw on Forex Factory Read the rest of entry »

"Do You Have Any Forex Trading Systems That Yields More Then 80%?"

Off the shelf trading systems don't come in boxes with guaranteed returns. Read the rest of entry »

Trade System Probability, Drawdown, and the Risk of Blowing Your Account - LONG

Lots of confusion abounds about the impact of trade system metrics of long term profitability. Read the rest of entry »