Forex
Forex: The world's biggest scam that somehow keeps the global economy spinning and traders spinning in circles.
This article delves into the world of retail forex trading, exploring its potential as a means of financial freedom and the challenges it presents to individuals seeking to make a living through this unconventional avenue. Through the lens of MoNoRi-Chan's personal experience, we explore the transformative power of forex trading, the impact on traditional employment, and the changing perception of money.
| Forex Sub-Articles |
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| COT • Compulsion Loop • Correlation • Demons • Holy Grail • Impossible Trinity • Money Management (MM) (This list is not complete and still Under Construction) |
What is Forex?
ตลาดปริวรรตเงินตรา หรือ ตลาดฟอเร็กซ์ The foreign exchange (Forex or FX) market is the largest and most liquid financial market in the world, where participants exchange one currency for another at an agreed-upon exchange rate. Here's a detailed explanation of some key components of the forex market:
- Central Banks:
- Role: Central banks are the government authorities responsible for issuing and managing a country's currency. They play a crucial role in the forex market.
- Actions: Central banks can influence exchange rates through various means, including setting interest rates, conducting open market operations, and intervening directly in the forex market by buying or selling their currency.
- Example: The U.S. Federal Reserve, the European Central Bank (ECB), the Bank of Japan (BOJ), and the Bank of England (BOE) are prominent central banks that impact the forex market.
- Hedge Funds:
- Role: Hedge funds are investment funds that aim to generate returns for their investors by actively trading a variety of financial instruments, including currencies.
- Actions: Hedge funds engage in currency trading to profit from exchange rate movements. They often use sophisticated strategies, including technical and fundamental analysis, to make trading decisions.
- Example: Funds like Bridgewater Associates and Soros Fund Management have been known for their significant participation in forex markets.
- Commercial Traders and Institutions:
- Role: Commercial traders include multinational corporations, financial institutions, and large enterprises. They participate in the forex market to manage currency risk associated with international trade and investment.
- Actions: Commercial entities use the forex market for hedging purposes to protect themselves against adverse currency movements that could impact their business operations.
- Example: A multinational corporation, like Apple, may use the forex market to hedge against currency fluctuations when conducting international sales.
- Retail Traders:
- Role: Retail traders are individual investors who participate in the forex market through online brokers. They make up a significant portion of the market but typically trade in smaller volumes than institutional players.
- Actions: Retail traders speculate on the price movements of currency pairs. They use various trading strategies and tools, including leverage, to make profits or hedge against currency risks.
- Example: Everyday individuals who trade forex through retail brokerages like MetaTrader 4 or 5. Including our Protagonist, MoNoRi-Chan "The Sniper"
- Currency Pairs:
- Definition: In forex trading, currencies are quoted in pairs. A currency pair consists of two currencies, where one is the base currency, and the other is the quote currency.
- Example: In the EUR/USD currency pair, the euro (EUR) is the base currency, and the U.S. dollar (USD) is the quote currency. The exchange rate tells you how much one unit of the base currency is worth in terms of the quote currency.
- Major, Minor, and Exotic Pairs: Major pairs include widely traded currencies like EUR/USD, GBP/USD, and USD/JPY. Minor pairs or Crosses don't involve the U.S. dollar such as EUR/JPY, and exotic pairs involve one major currency and one from a smaller or emerging economy such as USD/THB.
The forex market operates 24 hours a day, five days a week, and it's decentralized, meaning there is no single exchange where all forex transactions occur. Instead, it consists of a global network of banks, financial institutions, corporations, governments, and individual traders who engage in currency trading through electronic communication networks (ECNs) and over-the-counter (OTC) transactions. This market's immense size and continuous operation make it a critical component of the global financial system.
Meet The Currencies
Let's dive into the roles of different currency groups in the forex market:
- The European Currencies (EUR, GBP):
- EUR (Euro): The euro is the official currency of the Eurozone, which consists of 19 of the 27 European Union (EU) member states. It's one of the world's most traded currencies and plays a significant role in the forex market. It's often involved in pairs like EUR/USD and EUR/GBP.
- GBP (British Pound): The British pound, commonly known as the pound sterling, is the official currency of the United Kingdom. It's another major currency in forex trading, frequently traded in pairs like GBP/USD and EUR/GBP.
- Role: These currencies are actively traded in the forex market due to the economic strength and stability of the Eurozone and the UK. Traders often look at these currencies for opportunities in pairs like EUR/USD and GBP/USD.
- The Commodities Currencies (AUD, CAD):
- AUD (Australian Dollar): The Australian dollar is the official currency of Australia and is often referred to as the "Aussie." It's heavily influenced by commodities, particularly metals such as gold, silver and minerals, as Australia is a significant exporter of these resources.
- CAD (Canadian Dollar): The Canadian dollar is the official currency of Canada and is known as the "loonie." Canada is a major exporter of oil and other natural resources, so the CAD's value is closely tied to commodity prices.
- Role: These currencies are considered commodity currencies because their value is linked to the prices of raw materials. Traders often use them to speculate on changes in commodity markets.
- The Safe Haven Currencies (JPY, CHF):
- JPY (Japanese Yen): The Japanese yen is the official currency of Japan. It's often considered a safe haven currency, meaning investors and traders flock to it during times of market uncertainty due to Japan's stable economy and low-interest rates.
- CHF (Swiss Franc): The Swiss franc is Switzerland's official currency and is also considered a safe haven currency. Switzerland's political neutrality, strong financial sector, and stability make the CHF attractive during turbulent times.
- Role: Safe haven currencies are sought after during geopolitical crises or economic uncertainty. Traders and investors use them to reduce risk in their portfolios and hedge against market volatility.
These are just a few examples of currency groups in the forex market. Each currency has its unique characteristics and influences, and traders analyze a wide range of factors, including economic data, geopolitical events, and market sentiment, to make informed trading decisions. Understanding the roles of different currencies and their relationships is crucial for successful forex trading.
Satire Description
"Forex Trading: A Satirical Dance with the Dunning-Kruger Effect"
Welcome to the exhilarating and often delusional world of Forex trading, where self-proclaimed experts and novices alike embark on a journey filled with grand illusions and harsh realities. In this satirical exploration, we delve into the captivating dance between the Dunning-Kruger effect, self-education, and risk management in the unpredictable forex market.
1. The Dunning-Kruger Effect: Where Ignorance Meets Confidence
Ah, the Dunning-Kruger effect, a phenomenon that runs rampant in the forex trading community. It's a delightful mix of incompetence and unwarranted self-assurance. Many traders, fueled by overconfidence and a dash of naivety, believe they have cracked the code to unlimited wealth. Little do they know, the market has a wicked sense of humor and is ready to teach them a humbling lesson.
2. Blowing Up Accounts: The Wake-Up Call
Enter MoNoRi-Chan, the starry-eyed trader who thought he could conquer the market with a few YouTube tutorials and a handful of indicators. But alas, the market had other plans. Through blown-up accounts and painful losses, MoNoRi-Chan learned that success in forex trading is not an overnight phenomenon. It requires perseverance, self-education, and a healthy dose of skepticism towards those flashy trading gurus promising instant riches.
3. The Long and Winding Road of Self-Education
MoNoRi-Chan, undeterred by his early failures, set out on a path of self-education. He devoured books, attended webinars, and connected with experienced traders who had weathered the storms of the market. Slowly but surely, he began to grasp the complexities of forex trading and developed a more realistic view of his own abilities. The journey of self-education became a humbling reminder that knowledge is the key to mitigating risk and making informed trading decisions.
4. The Art of Risk Management: Navigating the Unpredictable
In the world of forex trading, risk management is the compass that guides traders through treacherous waters. MoNoRi-Chan, armed with newfound knowledge, learned the importance of setting stop losses, managing leverage, and resisting the siren call of overtrading. He understood that the true measure of success lies not in astronomical gains but in protecting capital and staying afloat amidst the market's wild fluctuations.
Conclusion:
Forex trading, with its allure and treachery, is a world where the Dunning-Kruger effect lurks around every corner. It's a reminder that confidence without competence can lead to disastrous consequences. MoNoRi-Chan's journey showcases the transformative power of self-education and risk management, paving the way for a more grounded and informed approach to trading. So, fellow traders, embrace the satirical dance with the Dunning-Kruger effect, but remember, it's the long and winding road of self-education that leads to sustainable success in the unpredictable realm of forex.
Remember that there is always next week. This week might have ended in a loss, break even, or even in profit. But keep in mind that next week is around the corner and the markets will be giving more set ups. One bad week doesn’t make you a bad trader and one good week doesn’t make you a good one. Be consistent. Show up everyday. And make sure your winners are bigger than your losses.
The hardest part of blowing up your account is not being able to trade anymore. Always make sure you'll be able to trade next week. Cant be a trader without trading!
Disclaimer
The content presented in this article is for informational purposes only and should not be construed as financial advice. Forex trading is a highly speculative and risky endeavor that involves the potential for significant financial losses. It is crucial to acknowledge that a large percentage of traders incur losses and may ultimately decide to discontinue their trading activities.
While MoNoRi-Chan's story is presented as a fictional account, it is important to recognize that his experience and outcome are not representative of the typical trader's journey. Individual results may vary, and it is essential to approach forex trading with realistic expectations.
Forex trading requires extensive knowledge, experience, and continuous learning. It is not a guaranteed way to escape the traditional job market or achieve financial freedom. It is crucial to thoroughly understand the risks involved and carefully assess one's financial situation, risk tolerance, and investment objectives before engaging in forex trading or any speculative activity.
Seeking professional advice, conducting thorough research, and developing a well-defined trading strategy are critical steps to minimize risks and increase the potential for success. It is also important to note that past performance is not indicative of future results.
Trading stubbornness alone is not a sufficient strategy for success. Successful traders combine persistence with discipline, risk management, and an understanding of market dynamics. It is advisable to consult with a qualified financial advisor or professional before making any investment decisions.
Remember, the forex market is inherently volatile, and financial markets are complex and ever-changing. Only risk capital should be used for trading, and individuals should never trade with funds they cannot afford to lose.
Additional Resources
- Correlation and the DXY
- Impossible Trinity
- Gold, Oil and Cryptocurrency
Original Article
| ♻ Restored Content: | The following content is a work of fiction and has been generated with the assistance of OpenAI GPT-3 language model. Any names or references to people, organizations, or events are purely coincidental and should not be inferred. The content is not intended to represent any real-world entities or situations. The purpose of this content is purely for entertainment and educational purposes only. The Content was restored (with assistance from 冰淇淋 Cache) from the data purge, the content on this article may be outdated. |
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Forex, or foreign exchange, is a market where individuals, businesses, and institutions can buy and sell different currencies. The exchange rate of a currency is determined by the supply and demand of that currency in the market. The Forex market is one of the largest financial markets in the world, with an average daily trading volume of over $6 trillion.
Unfortunately, Forex trading has often been associated with Ponzi schemes in Thailand, particularly with the collapse of Forex3D in 2013. This has led to a negative perception of Forex trading among Thai people, who view it as a risky and unreliable investment.
Forex3D
Forex3D was a well-known Forex trading platform that was marketed as a high-yield investment opportunity for Thai investors. The platform promised its investors high returns with low risk, but it turned out to be a Ponzi scheme.
Forex3D was launched in Thailand in 2010 and quickly gained popularity among Thai investors who were looking for quick and easy ways to make money. The platform was able to attract tens of thousands of investors by promising returns of up to 36% per month. However, the high returns were too good to be true, and it was soon revealed that Forex3D was nothing more than a Ponzi scheme.
Forex3D operated by using new investor funds to pay returns to existing investors. This created a false impression of profitability and stability, which attracted even more investors. But as more and more people invested, the scheme eventually collapsed, leaving thousands of investors with significant losses.
The impact of Forex3D on Thai society was substantial. It eroded the trust of many Thais in the financial industry and created a negative perception of Forex trading in general. The Thai Securities and Exchange Commission (SEC) took action against Forex3D and its founders, but the damage had already been done.
The Forex3D scandal had far-reaching consequences, not only for the investors who lost money but also for the reputation of the Forex industry in Thailand. It demonstrated the importance of due diligence and caution when investing in financial products, especially those that promise high returns with low risk.
In conclusion, Forex3D was a prime example of a Ponzi scheme that took advantage of the trust and ignorance of Thai investors. It created a negative impact on the outlook of Thai people towards Forex trading and serves as a reminder of the importance of educating oneself before investing in financial products.
MoNoRi-Chan's Expertise on Forex
| ⚠️ Disclaimer: | The information provided in this text is for educational and informational purposes only. These writings are my own opinion, provided as-is, and has no warranty expressed or implied. None of it is financial, legal, or other professional advice. The author encourages readers to use discretion and make informed decisions regarding their own practices while seeking professional advice if necessary. |
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MoNoRi-Chan, also known as "The Sniper," is a seasoned veteran in the Forex market. He has been trading for years, but took a hiatus before coming back to full-time trading after quitting his job at a certain company. With the backing of his friend, the CEO of Grassstation, a legal cannabis dispensary in Thailand, MoNoRi-Chan opened a PAMM business and quickly gained the trust of investors by consistently making 100% ROI in just three months.
As a trader, MoNoRi-Chan uses a 5:1 R:R ratio to snipe the USD/JPY pair and make impressive profits. He knows that trading in the Forex market is always risky, but he protects his capital by keeping a close eye on the market and making calculated trades. In the half-year since he opened his PAMM service, MoNoRi-Chan has never lost a substantial amount of capital, and only experienced normal drawdown, which is common in trading.
MoNoRi-Chan's goal is not just to de-stigmatize Thai people's views on Forex as a Ponzi scheme, but also to create a stable economy for the people. He plans to do this by creating THBт, a new stablecoin backed by Thai Baht, using the profits he makes from trading. This new currency will be more like an XDR in treasury terms, providing stability and security for the people.
In conclusion, MoNoRi-Chan's successful trading and his plans for THBт demonstrate his commitment to creating a better future for the people. With his experience and knowledge in the Forex market, he is well-positioned to make a positive impact on the Thai economy and bring stability to the people.
ForexBets
There's a lot of debate in the investment world about whether forex trading is a legitimate form of investing or just another form of gambling. While some argue that forex trading is a legitimate way to invest in the global economy, others believe that it's just another form of speculative trading.
One of the main reasons that forex trading is often compared to gambling is because of the high level of risk involved. Just like with gambling, investors who engage in forex trading are taking a significant risk with their money. While there is the potential for high rewards, there is also the potential for significant losses.
However, it's important to note that forex trading is not purely a game of chance like gambling. Unlike in a game of roulette, for example, investors in forex trading have some level of control over their investments. With research, education, and experience, investors can make informed decisions about when to buy and sell currencies.
That being said, forex trading does share some similarities with gambling. For example, both involve taking risks with money in the hopes of achieving high rewards. Additionally, both can be addictive, with the lure of potential profits keeping investors coming back for more.
One of the main differences between forex trading and gambling, however, is that forex trading can be a legitimate way to invest in the global economy. With the right education, research, and experience, investors can make informed decisions about when to buy and sell currencies, potentially making a significant profit.
In contrast, highly leveraged products like crypto perpetual futures are often seen as even riskier than forex trading. These products can be highly speculative and are often compared to gambling. The high level of risk involved in these products can lead to significant losses, and investors should be very careful before investing in them.
Ultimately, whether forex trading is a legitimate form of investing or just another form of gambling is a matter of opinion. However, it's important for investors to understand the risks involved and to take the time to educate themselves before making any investment decisions.
While experience can be a key factor in becoming a successful forex trader, it's important to remember that experience alone is not enough. Investors should also seek out education and professional advice before making any investment decisions.
In the end, whether forex trading is a legitimate form of investing or not, it's important to remember that investing always carries some level of risk. Investors should be careful, do their research, and make informed decisions based on their own personal financial goals and risk tolerance.
