Forex market / Forex trading

[DimPrawn]

This thread is to discuss forex trading as a means to make money / plan b.

First off I'd like to say that forex is a zero sum game. Brokers do not generally lose money when you win as long as you choose an ECN broker and not a bucket shop. For every winning trade, there's an equal losing trade and the broker generally make their money through the spread (bid to ask) and/or commissions plus any swap for trading on margin.

Therefore it's more akin to poker, where there are definately those consistently making money (the few) and a large number of those consistently losing money (the many).

The aim of the game is to join the few after spending a lot of time with the many.

Discuss.

[sasguru]

Discuss.

No. I'd rather spend my time getting rich. Next!

[DimPrawn]

No. I'd rather spend my time getting rich. Next!

Okay, that's fine, please carry on.

Anyone else?

[suityou01]

Okay, that's fine, please carry on.

Anyone else?

Perhaps some backgrounders for the great unwashed? This history of forex trading probably being a good place to start.

[mos]

For every winning trade, there's an equal losing trade and the broker generally make their money through the spread (bid to ask) and/or commissions plus any swap for trading on margin.

I assume that you mean retail average joe players.

True, consistent winnings will only go to insider traders (they stick out like a sore thumb, few trades on only one stock). All others will loose on aggregate (and over long term) the amount equal to the spread.

it works differently for ViP accounts, who can call in and cancel trades which turned sour and these trades will get re-allocated to the 'hedging pot' sometimes also called the account 666666.

[DimPrawn]

Perhaps some backgrounders for the great unwashed? This history of forex trading probably being a good place to start.

Wikipedia is as good a place as anywhere.

Foreign exchange market - Wikipedia, the free encyclopedia
Retail foreign exchange platform - Wikipedia, the free encyclopedia

[LatteLiberal]

Retail level Forex trading using high leverage (usually with little capital) is gambling. If you make any money short term it will be wiped out long term. Either by greed, randomness of the market, mistakes or costs.

[eek]

Retail level Forex trading using high leverage (usually with little capital) is gambling. If you make any money short term it will be wiped out long term. Either by greed, randomness of the market, mistakes or costs.

Are you sure about that :

Not done it for years but the car before last (brand new) was paid for from spreadbetting.

[suityou01]

Are you sure about that :

Not done it for years but the car before last (brand new) was paid for from spreadbetting.

[DimPrawn]

EURUSD was on the floor. Follow the news feeds and some EU cretin says Cyprus deal may be on the table again.

EURUSD just shot through the roof.

Of course that was a random co-incidence and it wasn't for example possible to make £1000's in a matter of minutes. Oh no, statistically that couldn't happen.