Starting a Hedge Fund

AAA,



Well, when you trading real big money then just
go to Refco, the greatest non-interbank market
participant with spreads of 3 pips on the
majors.
People like www.hotspotfx.com are just start-
up's and have the risks of start-up's in all
ways...
But these companies are just a forbode of what
is coming and going to change.
You known what..? The big banks don't want
to miss the ECN revolution in the Forex market
like they missed it for the stock market.
And that are the words from a relative of
mine with Deutsche Bank...
I don't need anyone's advice, I look at the
facts and make my own idea of it....
 
sabena,

Look, I don't disagree with you about direct access type fx trading being the wave of the future. I'm just saying there are major risks to dealing with non-regulated entities. You may well be equipped to assess and handle those risks but I know I am not, nor do I need to when I cna trade futures .
 
Years, the brokers that offered Forex
trading were non-regulated.

Your money was not insured in any way.

It is just recently that Forex brokers
should register just like Future brokers.

The reason that it was difficult to regulate
is of the non-centralized structure of the
Forex market.

A bank in Austria can trade with one in
Costa Rica, the trades are not going trough
a centralized location.

That's why it is more difficult to regulate.

If you want more safety then stick with
currency futures, yes.

But George Soros is not trading currency
futures, he trades on the Forex market
because of the immense liquidity.

I already had the opportunity to look around
in the Forex trading desk of Deutsche Bank.
If you have seen that, you known what
liquidity means......
 
Question ; Do banks engage in daytrading ?

Answer ; Yes, in the Forex market.

A relative of mine is doing this.
He is playing with 25 million dollars
and is paid 25000,-$ per month + 10 %
of profits made for the bank.


Try to daytrade with 25 million dollars
with having only 1 or 2 position in the
stock market......
 
What exactly is the big push on with the Forex market anyway? It is nothing new, same old game, new players, changing technology....nothing fancy, nothing new, banks still control it.....

I have no problem with the Forex market for the big players at all...it is just not a great place for individuals to play, that's all.

You're exactly right about the $25Mil (I might question the salary plus bonus example...those days are pretty much gone according to my sources at Deutche)...but other than that, we seem to be in agreement....

:-)
 
Don,



Why the Forex market is so interesting ?

First of all , no manipulation possible
like market markers games.
Not even a government can control prices
by interventions, but for a few hours.

And, this market is 24 hours.

Let's suppose you can make 1 % daily in
a 8 hours time frame like the stock market.

If you can make 1 % in 8 hours, then you can
make 3 % in 24 hours.

In the stock market you only have 1 time frame
of 8 hours to trade in 1 day.

In the Forex market you have 3 timeframes
of 8 hours.
SO, if you play around the clock, you can make
3 times as much...

Also the Forex market has the best trends of
all markets.

It's simply the most fair market there is...
 
I would be glad to discuss some of this "off-thread" if you would like. I am just afraid that you may have been sold a bill of goods by the "people" (read: predators) who exploit so many by sucking them into trading forex. You may be a complete exception to the rule, and you may be making big money....I don't pretend to know.

The Forex markets are controlled, in fact more so than Naz, by MM banks who have a much different motivation for pricing structures. If your bank needs an additional 1 cent increase in exchange rate to make their FED, or IMF, or "Loan to Value", numbers...then you can bet that they will get that 1 cent increase. This doesn't mean that you cannot make money, it just means that you will be a very small fish in a very big (and manipulated) game.. Again, just my opinion.

Since there are very large commissions and other incentives being paid to "recruiters" in this business it just smells of impropriety....and yet, so did the NAZ a decade ago (oops, bad example)...:-) :-) I have been "propostioned" a dozen times by these "slicksters" who tell of this "easy money" 24 a day trading....and yet, not one of them would show me any sheets showing their personal trades...kinda weird, don'ta think??

Hope to see you at the expo in NYC...we can chat some more....
 
Don,


First of all, I am completely independent.

I make my living daytrading E-mini's

and would like to trade for family and friends

and other's who show interest.

Because of the limited liquidity, I want to

to direct my trading for those to the Forex

market, so that there will come no point

that I have to say "sorry, the airplane is

full"


I'm not paid by anyone to introduce new

clients.

I hate the sales people in this business and

prefer to talk and discuss with REAL traders

that do it for a living....

Yes, if you want to discuss more about this,

feel free to E-mail me .....
 
Originally posted by sabena
Question ; Do banks engage in daytrading ?

Answer ; Yes, in the Forex market.

A relative of mine is doing this.
He is playing with 25 million dollars
and is paid 25000,-$ per month + 10 %
of profits made for the bank.


Try to daytrade with 25 million dollars
with having only 1 or 2 position in the
stock market......
More...

I believe the majority of the activity done by banks in the forex market is simply trading the spread. They make money off the institutional order flow. I wonder how much actual directional risk large banks take in trading currencies.
 
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