Why Top Retail traders V Commercial Traders

[counter_violent]

Lol. I think I just sicked up a little in my mouth.

True story I was driving back from Brimsdown (dodgeville) last week stopped at the M11 services for a coffee. Went for a forest in the gents, sat there checking my phone and i looked down and to my disgust i saw someone had carved out a 2 inch diameter hole in the cubicle about 18 inches off the floor. I was out of the cubicle like a shot. As i looked back i noted the adjoining cubicle was engaged. Some dirty ***cer must have been in there waiting for someone to put there pecker through the hole. FFS what sort of wrongun goes to motorway services for action. Truly horrible.

😆 good story.

 

[robster970]

FFS what sort of wrongun goes to motorway services for action.

Me, Random, DT, LV, Shakone, Barjon, Mr Charts, CV, Pondlife, Mike, Mr Fox, Lurker and many many more.

I thought this was normal. What I find unusual is stopping for coffee. It tastes like sh1t.

 

[mike.]

someone had carved out a 2 inch diameter hole in the cubicle about 18 inches off the floor.

I was on my way back to finish it off 😉 😎

 

[sonofcablemonster]

😆 good story.

Made a mental note for next time to check for any cubicle modifications prior to dropping the kids off at the pool. :smart:

 

[Pondlifedregsbutler]

Lol. I think I just sicked up a little in my mouth.

True story I was driving back from Brimsdown (dodgeville) last week stopped at the M11 services for a coffee. Went for a forest in the gents, sat there checking my phone and i looked down and to my disgust i saw someone had carved out a 2 inch diameter hole in the cubicle about 18 inches off the floor. I was out of the cubicle like a shot. As i looked back i noted the adjoining cubicle was engaged. Some dirty ***cer must have been in there waiting for someone to put there pecker through the hole. FFS what sort of wrongun goes to motorway services for action. Truly horrible.

Not guilty. I prefer 2 drill one hole using a 10 mm drill bit for the old glory holes. Those 25 mm partitions they use in the crappas don't leave me a with much hanging in the action zone though..

 

[Forexmospherian]

OK - got the picture - when ever you stop at a motorway services station - keep your eye out for a short bald man wearing a T2W sweatshirt and carrying a cordless B&D drill along with an Infinity Capital Markets corporate brolly - be careful - I will ;-)

 

[Fugazsy]

Hi Billy ;-)

I suppose the real "nitty gritty" is fairly simple.

The more you respect the commercial forex trading world, the more you believe all how you should trade, the more you think Bank traders are or should be your "mentors" etc etc - the more you are being mislead

Trust no one - do your own study and research - but just don't think you can take them on and beat them at their own game in just a few months or years.

I have never personally worked in the commercial finance world although I have worked in senior positions for large International conglomerates.

You always have to do a SWOT analysis of yourself and what you are up against ( Strengths - Weaknesses - Opportunities - Threats ).

In the unregulated Forex markets - the largest money market in the world, the real retail sector of just independent traders makes up only a few percent of the whole "cake" - in fact added with small commercials etc its somewhere between 10 -14%.

For Deutsche Bank - one of the largest players - with over 15 - 20% of the total market - they can if they wish just "out trump" a million plus independent retailers who might be all buying or or all selling a currency pair - they have that much power ( or money;-))

For them and other large players to win and make money - other traders organisations have to lose. Retail traders are just easy soft targets - ( ie we could be compared to being just baby deer in the jungle - or small fish in the Ocean)

We can survive - and approximately 65-80% of all independent retail traders do every week and month. But long term only 5 -10% stay profitable and make good returns on a yearly ongoing basis - meaning somewhere between 65 and 80% of all retail forex traders eventually give up and no longer trade ( an exceptionally high "churn" rate for brokers - but with a global possibility of over 4 trillion adults to persuade to have a go - I don't think they are that bothered! )

Commercial traders are normally 24 - 40 yr old and have all had a formal education and would have qualifications that may take 2 -5 yrs to obtain. Retail traders - can be anyone really - start say on the 2nd of the month - and then within 3 months think they will have cracked it - and within a couple of years - be millionaires ;-)

Commercial traders are dealing with exceptionally large amounts of funds - and their main objective is to increase it - with as little risk as possible. Its not quite like the bored housewife who has $3k to play with - and if the worst happens and she loses it all - its not really a major incident. However if a Bank loses half a billion on a few bad trades - its major - and many heads will role and there could even be criminal implications if the traders involved have not kept to the Banks strict rules etc.

As a experienced retail forex trader - if you are able to trade on capital of $50 - 100K you should even with just risking 1% of your capital on stakes be looking at achieving 10 - 30% returns - per month on going - rather the listening to the industries averages of 3 - 7%..

If you are not able to achieve over 20% per month on a $2 or $5k live account ongoing - then you are not ready for the next stage - and whatever strategies, methods and money management you have - look at changing or improving it - so that you can stay in the "game" and continue on your "trading journey"

GL

Regards

F

I am reading this thread, I was looking for this. Grazie.

 

[temporarilylight]

I recall with much amusement that you had no idea a bid rate change had occurred and considered it a price action spike until advised otherwise. A BID RATE CHANGE. Especially since back then you were paying zero spreads, remember that comedy gold? I even warned you before the event that a big move was coming and you shoulda made a fortune since without a spread, the market has no way to trump any stop order move you could have made. Ah the good old days when you hadn't completely absorbed the boards into your smelly mass.

If you're arguing with your broker about spikes or slippage then you don't believe your broker is an ECN or you believe their matching engine is significantly flawed. In either case, you should leave the broker. If they reimburse you then they also believe their technology is flawed or are knowingly last looking your orders. Again, a reason to leave, immediately.

Haha and you're an expert scalper.
To be fair, using a forum of newbies to worship at the alter of late call scalping to make you feel good during your empty days does not exactly make you look like the big man.

You pulled your own credibility apart I think.



Not impossible, but then nor is making a living on multi deck blackjack. Have I seen it done or agency traded for myself or seen agency traded for anyone who has, no. You've never proven you do it. Just prattle. What's your tax structure for all these earnings by the way?

I don't know why I am answering your questions, as I've said before we have shown excessive courtesy in addressing your points, whereas you completely ignore ours or give knowingly pathetic dodges. I am not involved in HFT, you need an extremely low comms rate, co-location, just too much to explain at your level of comprehension of how this stuff works (no offence) blah blah. Given the lack of genuine info you have shared (i.e. none), I am not going to tell you my AUM... that's beyond the pale.

I never demanded your Sharpe within 10 minutes, I said it constituted 10 minutes work. Here you go, just for your addled mind:

After being patient with you after asking numerous times, I said "Just give me the ratio FX... it takes 10 minutes to figure out using your dailies."

Don't try and spin things that are a matter of written record... we waited many many hours without deriding your dodges for your Sharpe ratio before I even mentioned that.



I can - you can't. You gave none of the weaknesses, you linked to two websites, both of which had nothing of note, one was so childish it caused a great deal of amusement. I told you in my previous post why there were very few weaknesses in the formula I gave you when we have your dailies variant. Very good spin attempt on this post. By very good, I mean absolutely awful Fox News level idiocy.

EY are a firm, not a company. How long were you involved as a director again? How are the CTA today? On your back again? Just you wait till the Inland Revenue and their special list start demanding their piece of the action. Haha! Tit.



Even you know you're full of sh!t FX, even you.

haha. Didn't know about this thead. So funny!!! The experts have gon but the lulz are in full force.
Random nailed it!! So accurate in his observations, and this was ages ago, lol.

 

[Forexmospherian]

haha. Didn't know about this thead. So funny!!! The experts have gon but the lulz are in full force.
Random nailed it!! So accurate in his observations, and this was ages ago, lol.

Glad you think so

Those particular guys - especially Random - who was one clever guy - had not got a clue about retail FX trading

He even commented he did not think it was possible for ANY retail FX trader to make money using any technical strategy - and so that for me showed he was then talking out his back side.

He then tried to have me on the compounding lark - when I told him from day one I did not compound my account - but instead withdrew profits - as I already knew what my "financial wall " was - and had no plans to test it again

I think him and the other commercial guys ( I wonder if any have been sacked or charged with any investigations yet? ) did not like me getting under their skins - and fair do's they did not like it - especially when they found out I was not a crook vendor and P Boyles ( Sherlock Holmes) wasted his time trying to find dirt.

I should imagine you might be ex commercial trader - or if not you may think the sun shines out their ar*ses - but really good proper institutional FX traders are rare - simply due to how they have been trained etc etc

Look forward to seeing some of your trading calls etc - but dont bother if they are not on currencies - as any other instrument - have not got a clue on

Merry Christmas

Regards


F

 

[Fugazsy]

Its Boxing Day - and I am having a rest in between eating, drinking, visiting, party gaming, shopping, dog walking and watching footie on the TV

Noticed the GU and GJ both very tradable today - but promised myself I would ignore the charts until at least tomorrow🙂

Lets talk about how to achieve 30 -50% increases in your Forex trading account every month instead.

Its certainly on if you are starting off with your capital under $10k. At some time after 3 or 6 or even 12 months if you are smaller accounts - you will more than likely hit your "psychological financial wall" which might be at anything from just 5 lots up to even 30 lots per pip.

This is when you start worrying about having single losses over $500 or even $2000 and you start to value the size of your capital account above any dream of compounding all the way up to $1 million plus.

Nobody ever told me about this - yes heard all about dealing with losses - but nothing negative about the problem of compounding can have on you and your mind ( Why would the Industry ever say anything about that - I mean it's like telling a 5 or 6 yr old child there is no Father Christmas ;-) )

In my own case i stopped compounding and withdrew the monies so basically only having enough capital at the minimum level I needed to to trade on the lot sizes I am comfortable with - but everyone different so if you can stay compounding - go for it - and you will not need another 2 years to get to the big monies ;-)

So what method do you need to achieve 30 -50% increase every month ?

Its easy really- its the opposite to everything the trade and industry say ;-)

ie - My own general rules -

1. Multi trading every day - at least 5 trades a day - not convinced you need 25 - 50 or more trades a day even if you are scalping, but it is a number game - and winning trades count.

2. Small tight stops - ideally 3-5 pips - maximum 10 pips - anything over 10 pips - then you are not really good enough yet - get back to the drawing board and spend another 1000 live hrs watching small frame charts. Yes nothing wrong with 4 hr and daily charts - but they might give you the map - but they don't give you 5 -10 pip stop losses. If you are wrong on entry - you need to know ASAP - don't waste time in negative pips - get out ;-)

3. You do not need to use over 2% of your capital on every trade. I recommend 1% or less on larger accounts - so that you can have 2 or 3 trades on at the same time.

4. Short trade duration from initial trade entry - ie trades that last under 30 mins ideally - so that you can bank 7 -25 pips and then leave part stake on with stop in profit and hopefully forget until you have 50 -100 pips in the bag - whether that's in 2 hrs or 10 hrs - it does not matter - it's risk free and you can still focus on new trades.

5.Monitor at least 3+ forex pairs - yes major on one - but don't ignore all the rest. Sometimes its possible to take "copy scalps on 2 or 3 pairs and normally one pair will do up to twice the pips as the most popular EU - in the same period of under 15 or 30 mins

6. Pace yourself - aim for 4 -5% growth per day. If you are really good and do 20 days plus in the month - you will overachieve. However if you have a few bad days - and only get 1% or even lose 3% and are not prepared to work your butt off back into profit that session - then you need your 5% daily target to even the days out.

7. Micro manage - split every session into 30 min slots - don't worry if you don't get a trade every 30 mins - but if you cannot find one in 2 hrs - back to the drawing board - and learn and study again

8. Targets need to be with RR's over 2 ideally - ie 10+ pips - 15 to 25 pips - brilliant you only need a couple of RR's over 3 a day and you are in the money and then when you get a RR of 5+ brilliant - ie 30 -40 pips - On 3 pairs - at least 9 trades there with RR's over 4 or 5.

9. Losses - 1 to 3 per day - no problem - but remember if your stops size is 7 pips - don't lose 21 pips on 3 bad trades - get out even at minus 3 or 5. You are still better off than waiting to be stopped out. If you are losing 4 -6 trades a day with stop sizes under 10 pips - back to drawing board - you are not there yet ;-(

10.Win ratios - For me you need over 65% win ratios - According to many fund managers 55-60% is supposed to be top class. That's another myth I laugh at ;-)

It might be if you are fortune telling - but when you trade in the "now" - then 70 -85% is on most of the time The market is dynamic - you need to be - fixed target rules are a no no - take more or slightly less - go with the flows and always reenter if there is more than another 7 pips available.

See - its sounds easy - but it's not.

Its like saying - I can juggle with 3 balls and nearly there with 4 balls - bit i need to juggle 7 balls - will I do it in another month ???

It's taken me years and years with 1000's of trades - but I had to find it all out myself.

Any one with the basics and say 18 months behind them should be able to get there within another 12 months - as long as they do the work and are committed.

Hope that helps retail forex traders

All question welcome on why those are my guidelines

The other thing is - why you are getting there - don't worry if you only make 15% growth or even 20% growth a month - its still far better than the commercial world with their 35 -50% win ratios and there 3-5% per month methods ;-)

Back to the Turkey ;-) ( that's the food - not my wife lol )

Regards

F

good post

I do not agree on all the points but good post.

 

[Fugazsy]

well, this thread started well till the comment of my previous post.....then it all went into comparing the size of the noses (or shape ratio) once again ..........and as the other I did not finish reading it........ and you cannot blame me for that.

 

[Forexmospherian]

Top Retail Traders will always out perform their commercial counterparts

F, nobody is saying those kinds of returns aren't possible, simple fact is they are:
http://www.businessinsider.com/michelle-williams-trader-father-2011-1
http://en.wikipedia.org/wiki/Larry_R._Williams
http://www.dailyfx.com/forex/fxcm_n...ns_25K_in_Monthly_Forex_Trading_Contest_.html
http://finance.yahoo.com/news/worlds-top-retail-fx-trader-151940984.html
http://www.trade2win.com/boards/first-steps/120412-55000-one-month.html

The fact remains that they are usually high risk using demo or low stakes.
Either way, its possible no doubt.
Its also beyond most people, due to the high costs factor of each trade (spreads).

Instead of taking my usual approach of pointing out the reasons you still get flak,
just consider these perfectly reasonable points:

From what I can see on your thread you are still not posting exact entries.
http://www.trade2win.com/boards/dis...pert-retail-forex-trader-632.html#post2247872

The above post is a case in point.
EU 3690 is a good shout regarding price observation for shorts.
It is not however a live call, if you come back and say you entered a short
on EU after 0800, what is to say you didn't enter just before one of the two
pullbacks so far (both of which would have easily knocked a 5 point stop).

The point is, unless you post exact entries and exits its largely pointless.
Posting an entry only means typing 2 or 3 numbers if using whole or tenth points.
The rest of the call can be a wordpad template, for example you would only
have needed to type 87 and hit submit at time of trade (timestamp), the rest of the call text would already
be in an open posting window:

SHORT
EU
3687
5 point SL

Until that happens, can you really blame anyone for questioning the
validity of your calls?
This is a perfectly reasonable and factual point, as I'm sure your reply will be 🙂

Fair enough, thats why I suggested creating a template for the text of a call
and having it ready in a new reply window.
Add the last 3 digits and submit.
It really would solve a lot of the issues.
Otherwise, highlight the point that they aren't strictly live.

..............................................



I have noticed your advance levels observations, and they aren't bad which is why
I've altered my approach to you 🙂

Its a shame Liquid Validity is no longer around - as this guy had brains - and was his own man - ie not pulling the Bankers party line and dumbing down retailers - just like Random 12345 and Shakone successfully got away with doing

Its worth going through the first few pages of what really experienced Retail traders on LIVE money accounts can rack up in FX

Its not for newbies or even FX part time traders with just a few yrs behind them - they should be happy with break even and just 3-5 % per month.

But once past intermediate level and past 5 or 7 yrs part time then you should consider 5 -8% per month as standard achievement - even on low risk of under 2 % stake of your Capital account.

If you are a full time retail FX trader - or a part timers with over say 7 or 10 yrs of trading behind you then you have to be looking over 10% per month and as high as 25% + per month when not compounding and even with a decent size retail account over $40k or $60k+.

There are so many reasons why it is all possible including leverage / stake size and not under commercial rules and regs of your company.

You are your own boss - I have had even this last 6 months had results over 40% per month with no compounding and not using any stake size over 1 % of my capital

I will have to explain more about your own "Financial Wall" - because everyone has one - all depending on how rich you are and how risk averse.

Will explain that more in this thread i think and well as picking up on a few other previous comments - both good and bad

Regards


F

 

[Forexmospherian]

haha. Didn't know about this thead. So funny!!! The experts have gon but the lulz are in full force.
Random nailed it!! So accurate in his observations, and this was ages ago, lol.

No

They were not experts

They were commercial arrogant clones - who had not got a clue about the retail trading world - they only knew their own world - different ballgame - and a different concept.

They were of no help to retail traders - in fact they belittled them and were so condescending and arrogant.

Good job I have the same disregard to their world 🙂

Regards

F

 

[Forexmospherian]

well, this thread started well till the comment of my previous post.....then it all went into comparing the size of the noses (or shape ratio) once again ..........and as the other I did not finish reading it........ and you cannot blame me for that.

Yes you are right Fugazsy

That lot just totally took it away from the main subject and tried to intimidate and belittle me

That would take some doing - just wish they would return so we can have another ding dong 😉

Good Trading

F