Do you know what a market making broker is? Oanda for example is a market maker. These brokers actually trade against you. When you go long, they are taking the short, when you lose, they win. It's an easy game to play when 90-95% of the traders lose eventually. I think most big forex brokers are market makers one way or another even if they don't say so. MT4 MT5 platforms are rigged on the server end. If you read you will discover
Forex is a zero sum game my friend. Someone needs to lose in order for another to win. For anyone to make 100% gains per month, someone else got to lose 100% per month. It's just the nature of the game.
Where I stand is with the people, but it is true, to be successful we all have to be with the 5% and take the money from the 95%.
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It's probably this belief that most of us fail in this game for because it takes a certain kind of a cruel person to take another's money without offering any service in return. Forex servers nobody, that's why I wanted to at least give a bit of knowledge I gained over the years. To make me feel that I deserve the money which I earn. Also this isn't much different from a casino. One bets the price will go up, the other bets that it will go down, winner takes all the money. I don't think many realize what this game is to begin with.. makes you think yea?
Hi Saver0
Not as though it really matters - but I would have to disagree with many of your comments about the Forex Market.
You are basically saying that ever participator in the Forex market is a pure speculator trying to make money off a transfer of money from one currency pair to another?
So the guy going on holiday - or buying a villa in Spain or importing a LHD Shelby Mustang into the UK - is only interested on the exchange rate - and not the product or service he is buying etc ??
Similar in reality its not a zero sum - its a negative sum game - as a cost of entry or transfer is involved. Are IBM computers worried about me making a $500 profit on one of their $50 million exchange transfers etc etc from pounds to US dollars ?? The market is not pure speculation is basically what I am saying
Also with regards to 95% of all retail traders losing ongoing and only approximately 5% of all traders winning on an ongoing basis - is another myth I would love to dispel
When I first got into trading a year or so after the Millennium - I kept hearing at that time approx 70 -75% of all traders failed to make a success out of FX trading.
To me that did not seem to bad - ie many would give up after a few weeks or months if they lost their initial deposit and others would suddenly realise you could not learn a profitable method in 3 or 6 months - and so again try something else.
This later became confirmed as in the UK where spreadbetting is Tax Free - This can only remain as long as over 75% of all spreadbetters lose money. If suddenly 40 or 45% of all spread betters kept winning on an ongoing basis - the tax free rule would be dropped.
So - bearing these points in mind - yes - over 75 / 80% of FX traders lose money and dont make a continual success out of trading - but that is not saying 95% LOSE - In fact more than likely the true figure may be somewhere between 82 and 87% - meaning 13 to 18% of retail traders do make money and are ongoing in the black and increasing their Capital account.
This is then approx 3 times more than 5% as you and others guessers / rumour mongers suggest.
If there are for example 1 million retail FX traders in overs say 150 countries of the world - then 5% is only 50k traders making continual gains and on half a million world wide traders - only 25k.
But with say 15% then there could be over 100 - 150k profitable FX traders world wide - I doubt it as though I personally don't think there are anywhere like a million FX traders who are regularly participating and spectulating - but as the whole game is unregulated who know's - how many unregistered brokers are there dealing with the drug dealers and money launders of South America ?
I appreciate this is maybe off topic to your main subject - but every time someone comments on a thread - more damage and mis-information can come out= and end up as another myth
Regards
F
