With this guest post, we welcome Casey Stubbs of Winners Edge Trading.
Hello, My name is Casey Stubbs I write a Forex Trading blog and I have been a member of Currensee for a month. So far while being a member of this forex traders community I have payed particular interest to the Social Indicators. Currensee gives Forex traders access to exactly what traders positions are and which side of the trade is profitable and which side is losing money and they call that the Social Indicator. This is not a new idea because this indicator has been around for a while and there are brokers that figure this data and give this to their traders. However Currensee gives this data live real time and changing as the trades take place. You can even see if members of your trading team are long or short for a particular pair.
How can this help my trading?
At first I asked myself how can this help my trading and as soon as I asked that I noticed there was a conversation going on about the social indicator in the members hot topic section. I soon discovered two important factors that could impact trading decisions.
- I noticed that usually the greater number of traders in a certain side of a position that was usually the side that was losing money.
- I noticed that the side that was losing money was trading against the current trend that the pair was currently trading in.
Look at this picture the there are many more traders going short even though the current trend of the EUR/USD is strongly bullish.
So this became very clear to me that the majority of traders are not trading with the trend but instead are trading against the trend. I have always been taught to trade with the trend and I practice that in my daily trading. What happens is that the price may be changing a trend for a short time and most traders will jump in to get a quick profit but in doing so they will ignore the overall trend. This is my advice to traders on Currensee before making a trade, look at the social indicators see which side is profitable then look at your charts and confirm the overall trend of the pair. This will help you to not just follow your emotions but instead make sound trading decisions based on the current trend.
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.