Trading FOREX at home and winning big!

[Tim Smith]

Indeed, but "protecting them from themselves" is more or less the regulators' job-description, while "educating them" isn't?

I am actually thinking of the model where regulatory bodies don't just save you from the worst of yourself, they say this is what you have to do, this is what you have to be, before you can do this.

First and formost, the regulator is called a regulator for a reason !

Second, The regulator's job is *both* protection and education. Ask anyone who works in the financial sector about CPD (and why they need to do it) and authorisations (and why they need them).

The problem is, educating/authorising all the people in the financial sector is "easy" because the regulator can regulate for it, and then the various firms and their compliance departments can take care of ensuring the education happens.

If you went down the educating/authorising route for individual investors, then the regulator would need to take on a lot of the work themselves - or assure themselves of the credentials and ongoing quality of third-party training providers (because they would obviously need to ensure the training was independent and impartial). The problem is the regulator only employs so many people, and those people already have a big workload.

 

[Tim Smith]

Here are my 2 cents:
1. You traded SPOT back in the '90? .

Trading spot in the 90's .....
(Watch out for the awesome pencil twiddling skills from the man in Hong Kong !!)

 

[doggyfx]

It was new market for that time and traders only was starting to poke in. Today too many bucketshops and HFT systems which considerably complicates understanding price action, etc.

 

[bmw335isedan]

Do you even know what you're talking about? Where's the proof? The spreads widen ahead of news and that's usually it. You get RAPED trading futures.

This is what I am talking about. https://www.elitetrader.com/et/threads/can-a-spread-widen-to-200-pips.304604/

 

[propwarrior]

What possible advantage can a retail FOREX trader have?

... after his informational disadvantage to the big boys and paying the wider retail spread?

alright 777, I have been around the blocks. The two main advantages you have over the larger market participants are:

(i) you dont have to trade at any given time and can be very selective. MMs and banks generally have to trade.

(ii) you are trading such small size that you are able to secure good terms on fills and of course your trades are not noticed by the market.

The FX market has evolved in such a way that it offers very good terms for the retail traders. For example IB & LMAX offer superb execution for retail traders. Those of us in the UK also have access to spread bet dealer based markets. Retail traders have never had it so good in terms of execution.

Of course most retail traders will lose as trading is essentially a competition. The reason for this is for another discussion.

You will see all sorts of sports and game analogies on forums. The way I think about the markets and the analogy I like to use is a poker ring game. Everyone sits down around a table with different size stacks. As the retail trader you rock up with your short stack against big stack pros.

GL

 

[propwarrior]

Here is a post by another member (CBC) who is written against fx comparing futures. Just posting here to see your view on this.
-====

https://www.elitetrader.com/et/thre...-they-trend-similar-technically.304731/page-3
CBC
Alright kent, it looks like its gonna be back to basics for you.

With your trade above, you enter the trade and pay a spread to enter and to exit, this will be approxx 3 pips from what I understand (especially if moves in your favor) with spot.

So with a spot broker you will make $460 on your trade profit, and you will lose roughly say $280. This is taking into account slippage and good ol "re-quote".

So you place an identical trade on the future at CME. You will make $496 profit from the winning trade and lose $254 from the losing trade. Round trip costs with the future are roughy $4.


Clearly som1 placing multiple trades would want to trade the future.
-====

trust me thats horsecrap. You can get retail trades up to 5m and higher executed superbly at IB, LMAX, Duka. Futures FX liquidity is thin for a reason.

 

[Tim Smith]

(i) you dont have to trade at any given time and can be very selective. MMs and banks generally have to trade.

Aaah, you say that but ....

Your typical B-Book over-leveraged retail looser will be thinking they "have to trade" and that if they haven't got a trade on, they're not trading.

The luxury of time is a wonderful tool in the markets, and more people need to learn that.

 

[Trading Education Buyer]

This place has gotten really tired. Every thread is the same thing. One guy makes an inquiry and there's a bunch of people who, incidentally on a trading forum, will try to convince you why trading success is next to impossible. This place is utterly useless now except to discourage would-be traders.

This forum is going to the pitts to keep sponsors happy with uselless forex threads.It is wasting all the real traders' time.

 

[propwarrior]

Aaah, you say that but ....

Your typical B-Book over-leveraged retail looser will be thinking they "have to trade" and that if they haven't got a trade on, they're not trading.

The luxury of time is a wonderful tool in the markets, and more people need to learn that.

not having to trade at any given time is an advantage over some of the larger participants. Yes losing retail traders will typically over trade, go off plan and become the markets emotional bitch.

GL.

 

[athlonmank8]

This is what I am talking about. https://www.elitetrader.com/et/threads/can-a-spread-widen-to-200-pips.304604/

I've been trading through Oanda for probably 7 years+ and never once seen anything like that. Just because 1 broker is POSSIBLY screwing a customer doesn't mean that's common practice. Do you have any experience trading spot or just regurgitating someone else's uninformed information?