Forex Facts......that you have been avoiding

[p-lab]

and his doctor...imagine the repetitive strain on all that clicking

Alas he has a team of dedicated underlings imputing these 'Pro Scalps' amongst other multiple positions.

Yes it is truly hard not to be impressed with this and many other staggering achievements. However the 'Trillionaire Compounding XLs' truly brought a tear to my eye.

 

[p-lab]

some days I can get 100 pips , so worth continuing to compound at £1000 per pip

If you are not up for some sort of award 15 I will be most disappointed

 

[malaguti]

some days I can get 100 pips , so worth continuing to compound at £1000 per pip

I guess, im happy with my 40 though and spend the rest of the day annoying folks on here.

 

[15 min tlb]

I guess, im happy with my 40 though and spend the rest of the day annoying folks on here.

Like this?


One Flew Over The Cuckoo's Nest - Monopoly Scene - YouTube

 

[D70]

Delusion sets in when market behaves according to preset codes , but heck this was nfp day and money can be made on the most volatile or the dead markets.
Who cares how many trades , just consistent profits is more important.

Quiz for you.

If the market moves 0 pips, how many pips can you make?

The possible return on any specific day is a function of that days volatility whether you like it or not.

 

[15 min tlb]

Quiz for you.

If the market moves 0 pips, how many pips can you make?

The possible return on any specific day is a function of that days volatility whether you like it or not.

So eurusd has 600 pips daily movements on the totals of each low highs of 96 15 min bars.

 

[wackypete2]

Quiz for you.

If the market moves 0 pips, how many pips can you make?

The possible return on any specific day is a function of that days volatility whether you like it or not.

There's a simple math calculation for that. Don't they teach these things in forex 101 class anymore???

 

[jungles]

Stated another way, a 0.4% success rate is 1 in 250 people; which gives better (and a more optimistic) perspective in my view. Furthermore, the stats are probably similar to other arenas where only a small % will rise to the top: sports, business, acting etc.

Consequently, and my personal point of view, if a person is very determined to succeed, the low success rate is not a valid reason to not attempt to join the 0.4% fraternity.

In addition, I would argue that the low success rate in retail trading is not due to their being some mysterious formula that only a few manage to find. Rather, it is more closely related to variables such as: the time it takes to learn, emotional maturity, capitalisation etc. Variables which the average person, if determined enough, can wield some control over.

*Incidentally, I recently read that 98% of people who attempt to “make it” (how that is defined I don’t know) in Hollywood, fail to do so. So from a purely statistical point of view, you are 5x more likely to “make it” in Hollywood than retail trading.


.

 

[BeginnerJoe]

In roulette black or red, there's 49% chance you will win. I think most people should go to casino rather than trading.

 

[15 min tlb]

Fact 1

A recent study undertaken by Ph.D researcher John Forman, reveals that 99.6% of retail forex traders are unable to achieve more than 4 back-to-back profitable quarters.

Note: Statistically, any person marketing themself as a forex "teacher" will fall into the 99.6% group. NEVER give money to a forex "teacher" for training unless they can verify unequivocally that they are not in the 99.6% group. And remember, the "teachers" online reputation does not constitute verification.​

Fact 2

There are some outstanding hedge funds, however the Barclay Hedge Fund Index, measuring the average return of all hedge funds in the Barclay database, reveals that the average yearly return from 2008 to 2012 was just +3.17%. Which is less than most term deposit rates offered by your local bank.


Fact 3

Traders achieving percentage returns outside of the normal distribution*, in almost all cases, are doing so because they trade in a high risk fashion. Which also means their risk of ruin is high and in virtually all instances, if excessive risk-taking behaviour continues, is CERTAIN!!

The traders you read about on forex forums or at Zulutrade, for example, who achieve extraordinary rates of return, are almost certain to blow-up their account when using standard lots and real money, due to the high risk manner in which they trade.

Innumerable forex accounts at Zulutrade illustrate this. The forum is strewn with examples of once high return-high risk accounts that have either exploded spectacularly or will soon do so.

*Industry standard for traders at Trading Houses or Prop firms is a +10% monthly average. (This ROI decreases as account size grows). More than a +10% monthly average is a signal to professional risk managers that normal risk parameters may be being exceeded.​

In Summary

These are Forex Facts that in all likelihood you have not encountered because the people you have met online or in person, either do not know about them, do not want to know about them, or do not want you to know about them.

You need to be aware of these facts so as to avoid being mislead by your own dreams and other people's dreams.

In so doing you give yourself a better chance of making it to the incredibly elusive 0.4% of people who "succeed" in retail trading.

.

Does the same not apply to the entire set of trading instruments?

 

[darktrade]

Fact 1

There are some outstanding hedge funds, however the Barclay Hedge Fund Index, measuring the average return of all hedge funds in the Barclay database, reveals that the average yearly return from 2008 to 2012 was just +3.17%. Which is less than most term deposit rates offered by your local bank.

Does anyone know if the index is adjusted for funds that go out of business or stop providing data?

Good article, thanks!

 

[15 min tlb]

The forums/trading industry is full of amateurs , learners ,internet marketeers , broker's staff , gamblers ,retards , and a few professionals who trade like this :

47 pips today , profit 4,700 pounds

The study reflects non professionals