Farangrakthai

alot of these companies, don't know about FXCM, they don't acually put your trades on teh market. They know that 80-90% of indivual traders lose and lose alot, so they just take the losses when traders win and all of the profit, when traders lose. Big traders in New York, Tokyo and London know what they're doing and make all the money on the real market, though even they lose sometimes too. Bigtime, hedge funds sometimes close, like now in N.Y. and investors have their money locked in, not allowing withrdrawls, while the traders already bought their beamer and summer home.

likewise

Something to think about.

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Farangrakthai

the big players can move the market quickly, making the small players lose quickly if their on the wrong side. good example is George Soros who broke the pound, which you've probably heard about.

likewise

It seems to be a full time job if, staying up to date and selling/buying at the right time.

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Farangrakthai

it's great fun doing a practice account. I do it nowadays for fun. but for real, it's dangerous, though still a lot of fun, if you have money to lose.

Nanog

Good if you open a demo account first. I have been trading currencies for around 3 years. It's very difficult. Most people lose. I was lured by the promises of riches. You see them all over the net.....'Make 20,000 per month trading currencies'.....then comes the 'buy our system'. It's said that mainly the people who made money during the gold rush were those who were selling picks and shovels. I opened an account worth £500. I was clueless and didn't take me long to lose most of it. I now trade demo only when I have the time. I now know more about it but I am still not sure if I could make more than I lose. And even if I could would it be enough to live on. I have heard that some of the best traders make say 15% per year......I am not sure of the figure but it's not that great. So if you accept that, to make a living, you would need a pretty big account to begin with. When you find a strategy or method or whatever, you will invariably still lose. There are moves in the market which you won't be able to explain.....some might call it randomness. The 'trick' is to make your winners bigger than your losers. I know Laoshi you say that you have success but I am not sure about what you say concerning banking you winnings often. That goes against the maxim 'Cut your losses and let your winners run'. But hey, I am no guru.

esoteric1

Yup...pretty much the same IMHO.
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FYI...beware, China may be about to...or already are roiling the currency markets among others:
China threatens 'nuclear option' of dollar sales

http://www.telegraph.co.uk/money/mai...nchina107a.xml

of course this is in the Telegraph.

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Slick Rick

It's not the same as online casino. Even playing perfect strategy at the casino you will lose in the long run because of the house edge. Trading currencies, or any other financial instrument, is all about developing a strategy which gives you an edge to exploit. Plenty of people manage it, but many more fail. For sure, those that treat it like gambling at a casino lose their money.

esoteric1

So you think the 'big boys' at FOREX don't have a 'house edge?'

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Nanog

Do you actually trade currencies Slick Rick? If you do, do you mind me asking what type of strategy you use?

likewise

If you do please PM me some details.

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What's love got to do with it...........

Slick Rick

I'm sure they do have an edge they are exploiting, but there is nothing to stop you from developing an edge of your own. They are not 'the house' like a casino is. Casino games are games of probability designed so that in the long run you will lose, because it is a mathematical fact that you have a negative expectancy.

esoteric1

well whether it could be called a "house edge" or not is beside the point. If they have any sort of an edge then you are playing in a rigged game.

Sort of like a casino, eh?

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Slick Rick

I mostly trade intraday, but also swing trade medium term positions. Without wanting to go into too much detail, i mostly trade with the trend and buy on dips. Exhaustions and subsequent reversals, as evidenced today and Monday on GBP/USD, are also situations i look out for.
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No, it's not. Just because they have an edge on the market, it does not preclude me from having an edge as well.