Daytrading Currencies Explodes
- Thread starter TradeOff
- Start date
IndexTrader: No value? Are you out of your mind??
Forex traders regulate currencies! Without us, currency prices may very well head one way 100s of points needlessly.
We keep the globe balanced by our speculation money.
___
"little guy done paying the spread."
HA! If you call 2 points a "spread" then... your problem is not the the spread.
to
funky: It DOES cost less to trade currencies you are right.
Although this may be lowering, in the interbank market accepted minimums to trade are in even 100,000 unit blocks.
Forex traders can wield around a huge amount of currency - $100,000 - for little more than $2400.
Also, with a broker such as OANDA, a trader can trade less than 100,000 unit "contracts." They can trade 1000 units, or even 100 units or even down to 1 unit.
In currency trading, most of the money is made by risk-free banks transacting, more like "piggybacking" on customer orders. Between those players and YOU, there are layers of others with more capital, resources, connections to figure out which way things might go and often it's still all random.
The little guy with his 100x leveraged account/position? A ticking time bomb ready to go off any minute.
Who'll clean up? The players mentioned above need to eat!
Keep dreamin', fools, cause any money you think you make is only a little cash advance from the house.
The little guy with his 100x leveraged account/position? A ticking time bomb ready to go off any minute.
Who'll clean up? The players mentioned above need to eat!
Keep dreamin', fools, cause any money you think you make is only a little cash advance from the house.
Quote from TradeOff:
IndexTrader: No value? Are you out of your mind??
Forex traders regulate currencies! Without us, currency prices may very well head one way 100s of points needlessly.
We keep the globe balanced by our speculation money.
___
"little guy done paying the spread."
HA! If you call 2 points a "spread" then... your problem is not the the spread.
to
I trade currencies mostly but not exclusivly. The way I see it, it is easier for people with small accounts to get started in currencies and its not been open to such people for very long thus its currently enjoying a great deal of new blood as people try it out.
I think all the negative talk about currencies is wrong however, the same negative aspects can be said of trading in general, how many people say any form of trading is gambling? I get told it by people all the time!
A new trader with a small account can get eaten just as easily/quickly in any market. People claim the 100X leverage is a recipe for disaster, and your right....but...its the trader who makes use of it who is at fault, not the market. Just because its available to you doesnt mean you use it. And for all the claims of it being unregulated etc, how many crooks are involved in markets in general?! Your competing against people with vastly more capital than you in any market. Look at all the angst the bonds sell off caused on ET with the job numbers, someone somewhere knowing in advance to short....
So....yes ForEx is risky, yes the leverage can kill you if you use it all...any other market is just as dangerous however if its traded by someone with no knowledge and treating it like a spin of the wheel in vegas (look at all the journals on ET of people trying to get into trading the ES). Dont go on a ForEx witch hunt. (side note, if you cant trade past a 2 pip spread then you cant trade period, you need to learn more about the market than what you think you know)
I think all the negative talk about currencies is wrong however, the same negative aspects can be said of trading in general, how many people say any form of trading is gambling? I get told it by people all the time!
A new trader with a small account can get eaten just as easily/quickly in any market. People claim the 100X leverage is a recipe for disaster, and your right....but...its the trader who makes use of it who is at fault, not the market. Just because its available to you doesnt mean you use it. And for all the claims of it being unregulated etc, how many crooks are involved in markets in general?! Your competing against people with vastly more capital than you in any market. Look at all the angst the bonds sell off caused on ET with the job numbers, someone somewhere knowing in advance to short....
So....yes ForEx is risky, yes the leverage can kill you if you use it all...any other market is just as dangerous however if its traded by someone with no knowledge and treating it like a spin of the wheel in vegas (look at all the journals on ET of people trying to get into trading the ES). Dont go on a ForEx witch hunt. (side note, if you cant trade past a 2 pip spread then you cant trade period, you need to learn more about the market than what you think you know)
I like to trade Euro Futures on Globex CME. Commission cost is cheap. Nice way to trade overnight. Sometimes I am in a postions for a few hours, sometimes a few days. I gave up the indexes completely and I feel liberated.