FOREX Trading
- Thread starter jonas33h
- Start date
Stocks are a different game. Every fag can newstrade stocks. Research shitty electronics companies, buy stock before they release a new product, sit on the stock for a couple weeks, sell stock. Forex is not at all like that.
For a 20% gain to realize in forex, you need a 20% movement (no shit). Lets say you buy eur/usd at 1.2. Youll need to wait for it to hit 1.44. That takes months.
You cant just trade all 7 major usd pairs or all pairs between the 8 major currencies, because they are entangled. That always produces amazing results, til that one time hits when all the trades you entered turn sour at the same time and your bankroll gets reduced by 50-80%, depending on how willing you are to cut losses fast. Will happen within 2 years of deploying that "strategy".
You could do Eur/usd, gbp/jpy, chf/aud. The margin on that last one will already be big. You heard of the news that the chf is now somehow tied to the euro and/or usd? There are more things that yu need to know than "lol german unemployment rate higher than expected, lets short eur/usd".
Even if you manage to enter 3-5 20% trades a year, do you honestly believe that more than 55% of those are winners? If you can prove such results, financial institutions will back you with a 9 figure bankroll and youll get a high double figure percentage cut, no need to trade your own capital.
Ever heard of bankroll management? If you trade your entire capital on every trade, every time you lose a trade, youll spend the entire year chasing your losses (because if you lose 50%, youll need to make 100% back to break even).
Forex can be traded for profit, but you should keep it real and expect 10-20% a year if youre good. If youre not good, be glad you didnt lose much.
people say that about stocks, options, futures, bonds, all of the markets in general.
1. get advice on trading from WF members
2. act on that advice before validating any facts
3. lose your ass by not taking advice from WF
4. ???????
5. Profit!?!?
I'm on to something here. . .
That is interesting but with that said, one of the other benefits of currency trading would be that brokers allow you to do more than 2:1 margin. . . so even if it is 20% annually the ability to leverage more than other markets can still make you a winner. Good stuff.
Nothing is zero sum if there are transaction fee's involved. Same with Poker, it's technically zero sum, but it's not if you play anywhere with rake. Because of this, there's more losers than winners and you have to win more than 50% to merely breakeven.
Also was anyone else dead right on shorting Best Buy? I called it like 3-4 months ago and wish I had pulled the trigger 
. Two weeks ago, CNBC was all over Best Buy saying it's a dead business.. Feels good to know i'm right on most calls.
. Two weeks ago, CNBC was all over Best Buy saying it's a dead business.. Feels good to know i'm right on most calls.
Also was anyone else dead right on shorting Best Buy? I called it like 3-4 months ago and wish I had pulled the trigger
Fuck that would have been a good one to catch. . . it had 3-4 days tight trading but with the price settling on the low end the last to days and it broke through all level of support on the MA 20, 30, 50, 200. It hasn't it looks like 22.50 seems to be another level of support though it would be interesting to see if it goes through that as well.
You argue like a newbie, which is not a problem because you are one. Leverage is your worst enemy. The problem is that you only see what happens when you sit on a winning trade.
Have you ever heard of renaissance technologies? Google it. They post annual returns of 36% on their Medallion Fund. RenTech is thought to be the best player in the game.
Did you ever consider the fact that even though you might post 10-20% annual if youre good, youre still pissing away money due to inflation, which is defenitely right around that level. The inflation numbers official inflation agencies give out are very lowball to keep the people quiet. You could invest all your money in gold/silver and make the same "returns" doing essentially nothing.
Have you ever heard of renaissance technologies? Google it. They post annual returns of 36% on their Medallion Fund. RenTech is thought to be the best player in the game.
Did you ever consider the fact that even though you might post 10-20% annual if youre good, youre still pissing away money due to inflation, which is defenitely right around that level. The inflation numbers official inflation agencies give out are very lowball to keep the people quiet. You could invest all your money in gold/silver and make the same "returns" doing essentially nothing.
Except it's not true about stocks. Stocks can gain value without someone else losing. Forex cannot. It is 100% zero sum, and if anything, it's negative sum due to brokerage fees. Some of us know how math works here. If you want to gamble, go shoot dice.
Winnings in poker are measured in ROI(if you are playing tournaments whethere it is MTT or SnG) or in big blinds won per 100 hands.
Not by "games won".
This is due to that different tournaments have different buy-ins and different entering fee(rake). On top of that they have different payouts for the different places you finish.
If you win 50% of your games(other than HU) you, sir, are a millionaire.
If you play cash games, "games won" cannot even be applied.
Otherwise, yes, poker is negative sum, because there are fees(rake) involved.
Not by "games won".
This is due to that different tournaments have different buy-ins and different entering fee(rake). On top of that they have different payouts for the different places you finish.
If you win 50% of your games(other than HU) you, sir, are a millionaire.
If you play cash games, "games won" cannot even be applied.
Otherwise, yes, poker is negative sum, because there are fees(rake) involved.
you make me lulz
1. I didn't even think we were arguing. I thought we were having a discussion.
2. no i didn't consider it because that statement is bullshit. inflation is not around 10-20% you can't possibly be that dumb.
3. Again people who can't make money trading whether it be stocks, futures, options, or whatever else you want to trade say money can't be earned doing it . . . . interestingly enough in AM if people can't hack it, they say it's scam. . . . oh wow just like this thread. People saying you can't get rich off of stocks because they don't know how. ( i know it can be done because I know several people on a personal level who have done it )
So your "argument" of no you can't beat the odds is incorrect. This isn't gaming it's calculated risked measured off of technical analysis, understanding the economic condition related to your trade and even politcal changes ( and doing basic accounting if you are talking socks).
I am really done writing in this thread, as you seem convinced to do your thing, no matter what people are telling you, but that is soooo wrong way of thinking about margin accounts.
Brokers allow you to do 1:100 margin. The same way casinos allow you to play craps with 100k a bet. Do not be that guy.
I highly advise you not to go above 1:10, because I guarantee you that you will suffer severe losses.
Like losing your home losses. Pick up a book, read it. Then read it again. Then open up a funny money account and trade 6 months on it. Then try for real money. Then go for the big bux.
^ As my last post already colluded to I don't gamble. I plan on doing EXACTLY what you just said except if I can't get the hang of FOREX within six months using paper money I will either keep trying or stop altogether and just stick with stocks and options.
For anyone who hasn't ever traded anything I wouldn't recommend going on margin. . . . . . don't spend what you don't have if you don't know what you are doing!
For anyone who hasn't ever traded anything I wouldn't recommend going on margin. . . . . . don't spend what you don't have if you don't know what you are doing!
nowhere did i say you cant make money doing x.
im just telling you about things you clearly didnt take into account. go trade paper, whatever thats supposed to mean. just do yourself a favour and dont convince yourself that youll be able to produce the same returns trading live. psychology will always affect you when your real money is on the line, whether you want to admit it or not. so is slippage. if you intend to trade the news, forget about it. brokers dont allow you to trade during newstime, or make the spread so wide that its not profitable. of your demo trading, cut off 15 pips at both ends of the trade. every trade, not just your winners. are you still turning a profit?
what i question is the potential you see in forex. making significantly more than 20% a year is clearly not an option.
im just telling you about things you clearly didnt take into account. go trade paper, whatever thats supposed to mean. just do yourself a favour and dont convince yourself that youll be able to produce the same returns trading live. psychology will always affect you when your real money is on the line, whether you want to admit it or not. so is slippage. if you intend to trade the news, forget about it. brokers dont allow you to trade during newstime, or make the spread so wide that its not profitable. of your demo trading, cut off 15 pips at both ends of the trade. every trade, not just your winners. are you still turning a profit?
what i question is the potential you see in forex. making significantly more than 20% a year is clearly not an option.
