How wrong is the way we discover forex?

[LoRio]

....hmmmm...I thought every traders think like me:

"Wow that was an easy few hundreds/thousands profits. Why stop there and bring the account to the million mark??"
....or...
"If I can make that much with 0.10 size trades, imagine what I can make with 1.00 size trades!"

.....and, of course, inevitably Mr. Margin Call and Mr. Account Wipe-out come calling.

....then.....after the euphoria has died down somewhat (and nursing a bruised forehead).....swear emphatically that such stupid and idiotic mistakes will not and cannot be allowed to happen again....quickly refinance the trading account and repeat the whole bloody thing over again and again...and then some.

Totally .
I kinda lost stress after the 19th (yeap) bust account though.
I must be on a winning streak to start worrying about the next loss.(which rarely happens , which is normal)

 

[vic84]

yes we select brokers with total care and yet there are some genuine complaint against them.....

 

[Pharaoh]

Imagine a really broker with 10,000 clients. Every month, they sign up 100 or more new clients.

Now, look at some of the complaints.

"The broker closed all my positions and stole my money!" This usually is a new trader who over-traded and got a margin call. That person really does believe his money was stolen.

"They said they sent my money and it never arrived!". Sometimes this is very serious. Sometimes this is an impatient person who thinks that international bank wires should only take 20 minutes. Sometimes withdrawals really do get processed, but don't arrive due to some incorrect data or an error on the way. Without more details (like withdrawal method, when it was asked for, was the broker informed, etc.) it's impossible to know if this is a major warning sign of a good broker going bad or just one person being impatient or having a technical snag that will be resolved.

Even the best companies will get consumer complaints. Smart companies leap in and try to solve them quickly.

 

[bigdolly]

Actually, trading forex is the process of money redistribution among its partakers, gambling with finding possible odds in you favour. That's why any losses would be considered as scam, because forex really carry that type of feature by default.

 

[Pharaoh]

Not that some brokers don't cheat and cause some losses, but people who view all loss as a scam waste a lot of time. The reality is that losses and drawdowns are a part of any type of speculative trading.

 

[theemilym]

And some brokers must feel terrible if they make a massive loss for their clients! Brokers are human after all

 

[Pharaoh]

And some brokers must feel terrible if they make a massive loss for their clients! Brokers are human after all

I'm sure all the money bucketshops collect from clients they led into huge losing trades pays for a lot of tissue to dry the tears of the broker employees.

 

[jotekfinance]

Yeah, but lets remember not ALL brokers are bad. Some are tried and true and have the same philosophy that sure and steady profits win the day.

 

[Pharaoh]

True, but even a perfect ECN or STP broker makes money on each trade from commissions or spread widening. Letting a broker employee trade for you can easily tempt the employee to churn the account to increase the broker's profits. This creates an inherent conflict of interest.

Your account manager needs to not work for the broker and not be an IB to the broker.

 

[LoRio]

True, but even a perfect ECN or STP broker makes money on each trade from commissions or spread widening. Letting a broker employee trade for you can easily tempt the employee to churn the account to increase the broker's profits. This creates an inherent conflict of interest.

Your account manager needs to not work for the broker and not be an IB to the broker.

why do most ECN 's dont allow TP and SL set whithin the order placement?
(especially in EA's , they demand one call for order to be sent and one to modify stops)