So what does it take to find financial rewards in your trading career? I guess the answer comes from many facets of the adventure and may rely upon the approach in determining the levels of achievement, or better yet the bowling ball bumpers along the way. That tends to be the thought that I picture frequently enough that it has evolved into a fair description of the trading experience.
I picture a really wide bowling lane that narrows to the pins as it approaches them. Initially the first third of it has no bumpers and this is where retail traders find an abundance of errors. Some quit trading entirely here while more persistent personalities continue.
As the approach gets closer to the pins, a third of the way down we find bumpers guiding the ball closer to their objective. It’s the initial influence of persistence that helps the intermediate level trader achieve this perspective on the markets. It is this mid section that creates the plateau of success. But this is also where those who become professionals relentlessly continue and others fall to the wayside.
If the determination is strong enough the difficulty fades in the final attack on the profits of pins as the bumpers are removed. The lane has constantly narrowed but the problem here is that there’s still the need to be effective and strike while profits are in sight.  Eventually the financial rewards of persistence and perseverance pay off and routine profits are relatively easy.
But how do we eliminate the final roll to consistency? I don’t mean average levels of consistency but real consistency at 80, 90 or 95%?  I can only say, as many times I have enjoyed those days, the only thing resembling an answer to the puzzle is the number of times I have dissected and discarded analysis on the charts as worthless. 
It’s not the charts that cause the movement. It’s all in the values of the underlying national currencies! The last trade of the day Thursday this week was done without the candles being visible. This is because I know how exchange rates move and the candles are in fact taking your attention away from proper analysis.

Trading Prop Funds

You can spend months, many months, sometimes even years chasing the fallacy and dreams of following price action to success. There’s a few flaws in this approach and regardless, 95% of traders fail to recognize the flaw(s).
Here’s a theory to sink your teeth into. Consider walking into an auction house for prized art work, or in our case a commodity exchange for gold bullion. Prices fluctuate and drift lower and you recognize this. You hear the trading pit getting louder as you notice the visual activity of known buyers running into the pits to place their buy orders, some aggressive some more passive but the buyers have in fact shown their intent.
Meanwhile, sellers are in fact retreating, which as a result causes prices to move higher off the aggression of buyers.
The result on your screen is the price action as a result of the buyers and sellers incoming and outgoing aggression.
But for FX traders, we must recognize the efficiency the market has. It’s no longer a dollar/gold exchange rate, its a EUR/USD a GBP/USD a USD/CHF a USD/CAD exchange rate. The net pressures from ALL currencies give us a transparent read of cross border money flow and that is what governs exchange rate fluctuations on the micro-structure level.
So take the efficiency of FX markets, centralized or not and absent arbitrage opportunities the price action merely follows the flow of cross border movement which is tick based ‘sentiment’ as it leads price ticks 30-60 seconds ahead of price movement all day long. Once we see the aggression through arrays of analysis with the focus on the underlying currencies we can extract this leading sentiment. This is exactly what George Soros discussed in Alchemy of Finance and reactionary measures of the markets. But here, it’s exposed. The end result is price action follows sentiment as a reaction to cross border movements that the institutions trigger. It’s granular and has more precision than most traders have ever contemplated.
If you’re trading prop funds focus on this. I’ve focused on it for 29 years now and when I turn the faucet of trading on a few days a week the returns come in.
I teach this approach freely and have offered it freely in the weeks past. With the condition of the economy and political uncertainty, it’s my duty to expose the how, why and when markets move with precision. When you experience it, you’ll look back on the markets and have two reactions 1) You’ll be pissed you wasted so much effort without proper focus and 2) You will be shocked at how easy trading really becomes.
Again, the market is efficient, the cross border movement of capital is recognizable, it’s the opportunities that the institutions are after and as a result, our trades are made profitable by the existence of those opportunities and knowing them before the institutions do.
Where else can you leverage knowledge and extract routine profits from unscrupulous brokerage (prop funds are merely brokers) who attempt to take advantage of you not knowing the micro-structure that governs how exchange rates move in the first place.



Unfortunately the constant within retail trader experience is the erosion of trading confidence through use of lagging historical studies within a price action based approach. Sadly neither of these carry any bearing on how FX markets move in the first place.

For so many, these are stumbling blocks which become the final blow to the traders willingness to drive forward. I can tell you that if that were the case for myself, I’d not be writing you. But what if you continued and maintained focus and determination? The stumbling blocks became my stepping stones that led me to discovery after discovery. It didn’t just surface today but there is a clear difference between retail traders and institutional participants – and it’s shocking! Institutional capital cares so little about price action it’s almost irrelevant.


  • WHY FX Rates Move with Fundamental influences.

  • HOW FX rates move with Cross Border Capital Flows

  • WHEN Prices move. Discovery of Opportunity

None of the components in the institutional approach have anything to do with charts and candles. In fact, intelligent strategy doesn’t use candles to build strategy it uses the data that causes prices to move in the first place. Always a step ahead of retail traders. Learn how we measure the fundamental influences, cross border capital flows and how we discover opportunity with market leading analysis. You can do so free! Just register for our August Course.

Looking forward to seeing you in the course! You can find to register for this months course, August 8-10 here or on the link on the home page.


Best FX Trading Approach

Complete Trader Education

The best FX trading approach uses superior market intelligence and teaches traders how to trade well while eliminating bad trader habits. But to trade fx well requires an in depth understanding of economics as well as market micro-structure. The foreign exchange markets is by far the largest market in the world as it dwarfs all others in comparison even when the ‘others’ are aggregated together. 

It’s monstrous size is from the many industry sectors that have a component of foreign exchange. Banking institutions around the world are heavily involved in FX as are importers and exporters of produced goods. FX speculators are the smallest slice of daily turnover but oddly enough, this is the participant grouping that demands the most transparency and knowledge as they are more directly affected by exchange rate movements.

With iForex.Market you can expect something different. Our trading course stands second to none and lead the fx educational sector with price leading sentiment and real time trading models that analyze FX rates on the fly without the traditional historical lag traders are harmed by.  Register a community profile, enjoy our trading sessions and join our Traders Course. You’ll learn how the market moves and so much more as your confidence soars!


Wiping the Slate Clean

It’s not an easy task, but when traders approach me to teach them, the first thing they must do is wiping the slate clean. This means forgetting what they think they know about the markets already. Those methods haven’t worked well enough in the past, don’t expect them to provide stable returns in the future either. When a trader is ready to do this, they are ready to understand what causes the markets to move in the first place.


Forces that Cause FX Rates to Move

How is it that a medical doctor grinds through over a decade of education and yet a trader without proper trading education assumes they can conquer the market with resilient trading profits without any formal education on the subject? Well, unfortunately, success is not statistically probable for traders either. Not until they understand what causes exchange rates to move in the first place. Money Flow.


Money Flow or Currency Pair Strength? Completely Different Animals.

The first glance of value traders see is what’s visible in strength meters. These types of analytical models offer some insight into directional movement in a broad based generalized directional movement. They are a direct result of cross border money flow and in effect a lagging analytical approach without refinement.

Money Flow directly though understands the value of currencies (not currency pairs) but the individual values of currencies (USD, EUR, GBP, JPY etc.) With individual currency indexes that engage a normalized value – traders are in a much better position to analyze apples to apples. It is from these values that our trading students and prop fund traders are finding tremendous success!


Destroying ‘Concepts’

The retail sector of traders and educators in the years past have come up with some brilliant marketing schemes. Unfortunately, some of those concepts are not related to FX at all and are mere marketing gimmicks making traders feel they are on the ‘inside’ of an intelligent approach. The majority of our traders come from those methodologies and find far superior success with a data driven trading strategy  and approach to market analytics.

This allows the trader to apply strategy directly on top of the data that causes the markets to move in the first place and not merely overlay strategy on candles that are already historical in nature. By far, the Best Forex Strategy for consistent profits is one that’s dynamic, responsive, intelligent and leads the market.


Consistent Profits with Forex Market Liquidity and Price Patterns

Learning to Trade off Market Repetition with Ease A Powerful Lesson in Forex Market Liquidity can be experienced by sitting on the beach and looking out at the ocean. If you’re not close enough to a beach, no worries, your imagination will do. Is there something you can see that relates trading in some way? The water and the waves crashing upon the shore. This is what market liquidity does every day, every hour and every minute so let’s learn from it. As we sit upon the shore, the similarities between the ocean waves on the shore and market liquidity contributes to one of the most powerful methods and approaches of market analysis.

Think of the ocean’s tide as a trending market advancing upon the shore. What’s happening to the waves of movement is quite similar to the ebb and flow of FX liquidity, market sentiment and ultimately traded volumes. The tide and waves show you the higher lows and highs just before they peak at the top of the trend and crest. This is exactly what happens with market liquidity and exchange rate movements. While the top of the trend shows us a highs, the downward trend starts with the ebb and flow receding in the same manner as the climb.

I’ve taught traders with this metaphor for 18 years.  It’s provided many traders with a dynamic understanding of market movements in FX. Learning to trade foreign exchange isn’t difficult,  or at least it doesn’t have to be. Instead though of studying technical studies, focus on the forces that cause the market to move in the first place and you’ll experience tremendous gains in both confidence and performance!

Wiping the Slate Clean for Fresh Market Insight When traders approach me to teach them how to trade forex, before they access the Forex Traders Course I start by helping them wipe the slate clean. This triggers an opening in the mind so they may study the core influences of exchange rates. It’s the cross border money flow that traders never see and it’s by far the most powerful analytical approach there is as it allows us to use natural market sentiment to lead prices at every turn. This is the very reason why prices move, how far they move and exactly when exchange rates present us opportunities we can capitalize on.

The Core Influences of Exchange Rate Movement So if cross border money flow causes exchange rates to move, how do we identify this ‘money flow’? I’ve integrated non lagging currency indexes into my approach and trader instruction. The indexes allow us to compare apples to apples with normalized values. This is one part. We can see when exchange rate movement change their trend when indexes cross one another. This is important as trends cannot change unless the indexes in fact cross with their underlying values.

One FX Rate Two Instruments While we may be trading the relationship between the two currencies on our charts, there are in fact two instruments we’re analyzing. This strongly suggests that any analysis that does not analyze currency values in their individuality is a flawed approach, which then makes perfect sense as 90% of traders fail when trading FX due to unknown factors. Sentiment and Volume are the unknown factors.

Strong Opportunities to Speculate on FX Rate Movement While the currency indexes are important – what’s more important is the differential between the indexes. This provides us a glimpse of money flow into one currency and a opposing difference in the volumes of money flow into or out of the counter currency. We see statistically strong movements when the two indexes have a differential of 10%. It’s AMAZING!

Trading doesn’t have to be complicated, and it’s not. I fear to say though, that retail traders have been led astray from their hard earned money with faulty analysis, but that is yesterday. With an intense view of Forex Transparency today is a new day for traders with iForex.Market
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