Hi Guys,

Vlad has many reverse trading Anil stories with him. But ofcourse Vlad cannot narrate each and everyone of them. But Vlad just wants to point out this funny debacle where Anil Margin has again ended up shorting the bottom; this time USDCAD (Vlad loves how CAD and GBP pairs screws up Anil everytime).

The price will now go up to 1.36; Vlad is willing to bet Samir’s nuts and butts on it; Anil will be seen calling that USDCAD will go down! But seriously do you guys call this trading? Saxo has already stopped him from trading because of Margin Calls and draw-downs but would YOU have survived this nonsense?

Vlad is thinking about the poor souls in the group and outside the group who listened to his calls and went short – Vlad of-course reverse traded him and is carrying long from where Anil shorted and will keep it till 1.36.

But seriously! doesn’t it boggle your mind?? If you would have flipped coin; you would get better results

Being Right but Being Early Simply Means That You Are Wrong And You Dont Know How to Trade:

There is a fantastic stand-up comedy routine in which the the guy tells the audience that the only method to reply when caught cheating red-handed by one’s spouse is by calmly stating, “Who are you going to believe? Me? Or your lying eyes?” While this line always gets a huge laugh from the crowd, lots of traders regrettably take this suggestions to heart. The truth of the matter is that eyes do not lie. If a trader is short a currency set and the price moves versus him, non-stop rising higher, the trader is incorrect and needs to confess that reality, faster instead of later.

In FX, patterns can last far longer than appear actually. For example, in 2004 the EUR-USD kept rallying– increasing from a low of 1.2000 all the way to 1.3600 over a period of just two months. Traders looking at the basics of the two currencies might not comprehend the reasons behind the move considering that all signs pointed to dollar strength.

True enough, the U.S. was running a record trade deficit, however it was likewise attracting capital from Asia to offset the deficiency. In addition, U.S. economic growth was blazing in comparison to the Eurozone. U.S. GDP was growing at a much better than 3.5% yearly rate compared to hardly 1% in the Eurozone. The Fed had actually even started to raise rates, adjusting the rate of interest differential between the Euro and the USD. Moreover, the exceptionally high exchange rate of the euro was strangling European exports– the one sector of the Eurozone economy important to economic development.

As a result, U.S. joblessness rates kept falling, from 6%, while German unemployment was reaching post-World War II highs. In brief, dollar bulls had many excellent reasons to sell the EURUSD, yet the currency set kept rallying. Eventually, the EURUSD did turn around, retracing the entire 2004 rally to reach a low of 1.1730 in late 2005. But imagine a trader (like Anil Margin) shorting the set at 1.3000. Could he or she have held up against the pressure of having a 600-point move versus a position? Worse yet, envision somebody who had gone short at 1.2500 in the fall of 2004. Could that trader have taken the discomfort of being 1,100 points in drawdown?

The irony of the matter is that both of those traders would have benefited in the end. They were right but they were early. Yet in currency markets, unlike in horseshoes, close is not good enough. The FX market is extremely leveraged, with default margins set at 200:1. Even if the 2 traders above used much more conservative utilize of 10:1, the drawdown to their accounts would have been 50% and 90%, respectively.

In forex, effective directional trades not just require to be perfect in analysis, they need to be right, in timing too. That’s why thinking “your lying eyes” is vital to successful trading. If the price moves against you, even if the reasons for your trade stay legitimate, trust your eyes, show respect to the market and take a modest stop. In forex, being right and being early is the very same thing as being incorrect.

Anil Mangal’s calls are a proven joke now; Vlad would give his calls less probability than a coin flip as he has a knack of longing tops and shorting bottoms. Its easier to preach looking at the charts in the past with hindsight advantage but when it comes to real trading Anil is nothing but a mental midget. He neither has the capability nor have the capacity to trade. He has very weak trading aptitude; but still managed to pull of 2.5 million USD scam out of being “not a trader”.

Anyone who cannot time the market and cannot read charts looking forward (not looking at the hindsight) is never a trader.

The mere fact that Anil Margin confessed in weekly outlook to being in drawdowns everytime he enters trades (after Vlad’s blog went viral last week) proves Vlad’s point exactly; that he cannot trade.

Anyone who does this and then lectures others is nothing but a charlatan.

Angry Vlad.

PS:
Also may be if you guys noticed since Vlad started writing the blog – Anil has gone totally confused (or clever?) – now he gives both possibilities for each pair i.e. it can go up oh wait it can also go down – in short he has ended up messing his forecasts even more. What a joker.

UPDATE: Vlad above posted incorrect chart showing Anil’s short position level. Anil Margin is actually much dumber; he has shorted much below. Here is the correct level