Trading / Investing

Why did our AUD/USD trade go SO well?

2 Min Read

I came across a very popular Forex website earlier.They were "acknowledging" that they had made a bad prediction!No apology for misdirecting people.No apology for their poor analysis.Just an acknowledgement. (I bet their followers were sooo grateful!!)Saying sorry for misleading people only takes a minute... scumbags.Anyway...The prediction they made was on AUD/USD. They told traders to go long!! (wtf?!)As we discussed before - the market was set up to move down!In my analysis from Sunday night, I told you to look for bearish moves and I told you the red dotted line was going to be significant. (Scroll down that post for AUD/USD)My exact words were: "The red dotted line is a strong Daily swing high/low that will prove to be very significant (trust me!)"We then got a nice Type 2 close on the red dotted line.Look what happened next...

AUDUSD 1H

BINGO!Over 120 pips.Some traders could live off that for a month.So let's ask ourselves something...Did I do anything complicated? No.Did I use any unique tools? No - this time I didn't.So why did I pick up a 120 pip trade, while a 'reputable' signal provider acknowledged that they were wrong?Simple...It all comes down to one key factor.Let me ask you this... Hypothetically speaking... :-)If you were watching people panning for gold at one site.And you saw that they were finding gold occasionally (maybe 5% of the time), but their tools weren't great.However...You also knew of another site, one mile away - which no one else knows about.Problem is - the new site is unproven.What would you do?Go and pan for gold at the new site? Or stick with the people who are only being lucky occasionally?The answer might surprise you.