Not so easy.

[OfmY]

It's not the question how ordinary traders should trade.
However, it's obvious that such people is high level targets.

The question is how banks, hedge funds are trading, whether they are trading for speculative reason, what methods do they use?

Do the liquidity exist when vast majority takes one side? I think yes because potential money supply is much bigger than what involved in forex for the current time. Banks can use such money when everything is calm and direct the currency whatever they wish, of course, that direction is limited but it's more than enough to cover losses of one particular day per month by doing such thing every general calm day.

These are just my ideas...IMHOs.

 

[OfmY]

>In short, a large part of the banking business is the art of being a good middle man (aka market maker).

Neo,

You mean banks behave like middle ordinary people? Is that what you mean?

 

[mrvizion]

Quote from drsteph:

Agreed that retail FX on huge margin is definately akin to bucket shops of yore, and that quotes can be 'funny' if the dealer is using that method to make his profit.

However, you DON'T need to trade at maximum leverage. That's your decision, and if you do so to "maximize your returns" and "control $100,000 with only $2000 of up front money", you get what you deserve. FX done correctly is a primo asset class. But if you want to trade $100,000 - you should really have $100,000 to trade unless you really know what you are doing.

I hadn't really meant to sound so negative about FX...Truthfully I prefer the FX market over anyother...Like I said it's meant to destroy the pockets of the "sucker born every minute", but if you can do things properly there's no other market that can make you more money...I say this because I come from a strong FinMath background and know how to apply some serious Geometry theory...But for those that don't know what there doing and just like to believe they have a whim... I prefer if you just gave your money to charity...It will be far better used!!!

 

[Neodude]

No OfmY, in this sense it means that the bank makes money from the middle of a transaction. They get paid for bringing a buyer and seller together to do business. An Exchange like the CME or CBOT are perfect examples of middlemen, they "make a market".

-Neo

Quote from OfmY:

>In short, a large part of the banking business is the art of being a good middle man (aka market maker).

Neo,

You mean banks behave like middle ordinary people? Is that what you mean?

 

[mrvizion]

Quote from OfmY:

It's not the question how ordinary traders should trade.
However, it's obvious that such people is high level targets.

The question is how banks, hedge funds are trading, whether they are trading for speculative reason, what methods do they use?

Do the liquidity exist when vast majority takes one side? I think yes because potential money supply is much bigger than what involved in forex for the current time. Banks can use such money when everything is calm and direct the currency whatever they wish, of course, that direction is limited but it's more than enough to cover losses of one particular day per month by doing such thing every general calm day.

These are just my ideas...IMHOs.

Hmmmm I'm not sure if you're asking this question again or are you restating it... I thought I had explained the procedure...but the idea is that only 50% of the market is in regards to speculation, so as long as the larger entities that are involved with the market exist. The liquidity will exist...Mainly because Interbank which is the banking procedure that is followed between countries will always "Exchange" there currency for a "Fee" Being that they work unleveraged and use proper correlating strategies to retain what there money is worth. It is always a win win...The only way it would ever be a problem with liquidity would be if the majority of people started winning money quickly over a short period of time...Mind you I'm explaining this in laymans terms... I can get vastly more complicated if you'd like...

 

[OddTrader]

Quote from mrvizion:

I hadn't really meant to sound so negative about FX...Truthfully I prefer the FX market over anyother...

<snip>

...I say this because I come from a strong FinMath background and know how to apply some serious Geometry theory...

Do you have any rough ideas about average pips weekly gain (say EUR/USD), when traders properly using Geometry theory in general?

 

[OfmY]

I see what you mean by middle man. In short calm time, of course, I agree.

But we all know what comes suddenly after calm time. Sudden sell-off etc.

Still who wins majority, by which things?

It's not positive or negative about forex. I'm trying to be real, because playing with real money. And I'm really care why I win and who loss and why.

I like the phrase - market ignores the news.

 

[mrvizion]

Quote from OddTrader:

Do you have any rough ideas about average pips weekly gain (say EUR/USD), when traders properly using Geometry theory in general?

Well it all depends on what you're trying to accomplish. I've been witness (In all honesty) to some guys that can turn $5000.00 into $250,000.00 in 30 days. Although it takes alot more than you programming something into Tradestation and it levels off at a point where risk isn't worth the return... It would be better for me to state that you could "Reasonably" accomplish the goals you're seeking, but it will take time for the learning curve. Which for some reason people seem to never want to take time to do. But I'd say if your goal was a 1000 pips or more a month it's not unreasonable at all... Like I said though there's a learning curve involved because there is a great deal to knowing how and what kind to apply.

 

[Lon Eagle]

It isnt easy times.

I went short Euro dollar first thing this am before it broke down through 1.19.

I went long sterling after the MPC minutes.

So far so good.

I then stayed square as the euro hovered arounf 1.19 as could not decide whether it would force out all the shorts or go back down. Decided to go long at 1.1916. Since then I have been long of euro dollar 8 times and despite the fact that it is now substantially higher I have thrown away all this mornings profit and a fair bit more.

Such is life but it isnt easy at the moemnt.

 

[OfmY]

The subject of this item...not so easy

Me personally, guys, I have the responsibility to admit that I don't know even for a half with what I have a deal with. I think the majority of traders don't care about to look deeply at forex. That's why like in every business they loss.

I know that I wouldn't get the full answer about my questions here, because it's too expansive one...in money terms and in terms of experience.

But I'm sure it's not the MA, geometry, math etc. to win....it have to be a well-adopted complicated system of many elements, with one important elements - psychology and eager to find the truth.

I just want by this topic to attract the attention quite deeply on forex and why general audience are admited to play.